Which risk response involves eliminating the risk by canceling the project?

Which risk response involves eliminating the risk by canceling the project?

• A. Acceptance
• B. Avoidance
• C. Transference
• D. Mitigation

Answer: (B)

Avoidance is the risk response that eliminates the risk entirely by canceling the project or removing the activity that creates the risk. When the potential harm is too great or cannot be mitigated to an acceptable level, stopping the project removes the exposure altogether. This differs from mitigation, which tries to reduce either the likelihood or the impact while continuing, transference, which passes the risk to another party through contracts or insurance, and acceptance, which acknowledges the risk and proceeds with the plan, often with a contingency. So canceling to avoid the risk is the clearest way to eliminate it.