Project Management Professional Practice Question

The project manager is using a transfer strategy. Transfer shifts the impact of a threat-as well as responsibility for managing the response-to a third party, typically through insurance, warranties, performance bonds, or contractual terms. It does not eliminate the risk but reallocates its consequences. The other options describe different strategies: Avoid eliminates the threat entirely, Mitigate reduces its probability or impact, and Accept acknowledges the threat without proactive action unless it occurs.