Exam CAPM topic 1 question 72 discussion

Accept. Risk acceptance acknowledges the existence of a threat, but no proactive action is taken. This strategy may be appropriate for low-priority threats, and it may also be adopted where it is not possible or cost-effective to address a threat in any other way. Acceptance can be either active or passive. The most common active acceptance strategy is to establish a contingency reserve, including amounts of time, money, or resources to handle the threat if it occurs. Passive acceptance involves no proactive action apart from periodic review of the threat to ensure that it does not change significantly

The correct answer is: D. Mitigating. Explanation: When you establish a contingency reserve (for time, money, and resources) to address potential issues, you are taking proactive steps to reduce the impact of risks — this is the definition of risk mitigation. Mitigating risk involves reducing the probability or impact of a threat. Contingency reserves act as a buffer to lessen the consequences if a risk materializes. Why not the others? A. Accepting: You do nothing to influence the risk; you simply acknowledge it may happen. B. Transferring: You shift the impact to a third party (e.g., through insurance or outsourcing). C. Avoiding: You eliminate the risk entirely, often by changing the project plan. Summary: Creating contingency reserves is a risk response strategy that reduces the impact of potential problems — this is mitigation. Correct answer: D. Mitigating.

A for sure

D is tempting (don't you use the resources to mitigate the risk?) but A seems to be more correct since contigency reserve is built-in resources that assumes risk will happen. If anyone has an explanation why D is wrong (why can't resources from contigency reserve be used to mitigate risk) I'd be interested to know.

A-Accepting