TOPIC: Free PMP® Exam Sample Question of the Week

Hello everyone! Here is this week's free PMP® exam sample question from the PM Exam Simulator.

You are the project manager of project ABC. In the middle of the project, a fire broke out. There was not much damage, but some machinery was destroyed. The machines were already insured. Therefore, the fire did not affect the project cost. Which type of risk response did the team adopt in this scenario?

A. Mitigation
B. Transfer
C. Avoidance
D. Workaround

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HINT: The risk was shifted to the insurance company.

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Answer and Explanation:
The correct answer is B.

Transfer of risk shifts the negative impact of the event to a third party, in this case, the insurance company.