In risk management, which response reduces probability or impact of a risk?

• A. Contingency plan
• B. Exploitation plan
• C. Mitigation plan
• D. Transfer plan

Answer: (C)

Mitigation focuses on lowering either the chance a risk will occur or the impact if it does. It involves proactive steps to prevent problems or lessen their consequences, such as adding safety controls, improving processes, or increasing redundancy so the project can continue with less disruption. For example, strengthening quality checks reduces the likelihood of defects slipping through, and backup systems lessen the impact if a failure happens. By actively reducing risk exposure, mitigation helps keep the risk at an acceptable level.

Contingency planning is about actions to take if a risk event actually occurs, so it addresses response after the fact rather than prevention. Transferring risk shifts the burden to another party (like insurance or outsourcing) rather than reducing the likelihood or severity of the risk itself. Exploitation planning targets opportunities to improve upside, not to reduce threats.