CAPM (Certified Associate in Project Management) Practice Exam

What does the 'avoid' strategy in risk management involve?

1. Changing the project management plan to eliminate the threat entirely

2. Shifting all or some of the risk to a third party

3. Taking no action as part of the planning process

4. Reducing probability and/or impact of an adverse risk event

The correct answer is: Changing the project management plan to eliminate the threat entirely

The avoid strategy in risk management involves altering the project management plan in order to completely eliminate the threat that could negatively impact the project. This option is different from shifting the risk to a third party (B), which means transferring the responsibility and consequences of the risk to someone else. Taking no action (C) may seem like a passive approach to risk management, but it can potentially lead to larger issues down the road. Reducing the probability and/or impact of a risk event (D) can be effective in managing a risk, but does not completely eliminate it as the avoid strategy does. Therefore, A is the most appropriate and effective option for risk management.