According to the PMBOKGuide, specifically within the Plan Risk Responses process, risk response strategies are categorized based on whether the risk is a threat (negative impact) or an opportunity (positive impact).
* Strategies for Threats (Negative Risks):
* Avoid: Changing the project management plan to eliminate the threat entirely.
* Transfer: Shifting the impact of a threat to a third party, together with ownership of the response.
This often involves the payment of a risk premium to the party taking on the risk (e.g., insurance, performance bonds, warranties, or fixed-price contracts).
* Mitigate: Acting to reduce the probability of occurrence or the impact of a threat.
* Accept: Acknowledging the risk and not taking any action unless the risk occurs.
Analysis of Other Options: The other options provided are strategies used specifically for Opportunities (Positive Risks):
* A. Exploit: Seeking to eliminate the uncertainty associated with a particular upside risk by ensuring the opportunity definitely happens.
* B. Share: Allocating some or all of the ownership of the opportunity to a third party who is best able to capture the benefit for the project.
* C. Enhance: Increasing the probability and/or the positive impacts of an opportunity.