Which items are included in a risk mitigation strategy?

• A. Risk avoidance and risk transfer only.
• B. Risk monitoring and escalation only.
• C. Risk reduction, risk transfer, risk avoidance, risk sharing.
• D. Risk capitalization and hedging.

Answer: (C)

A risk mitigation strategy blends actions that reduce either how likely a risk is or how bad it would be if it occurs, and also spreads or shifts that risk to others when appropriate. The best answer lists four key approaches: reducing the risk (lowering probability or impact), transferring the risk to another party (insurance, outsourcing, contracts), avoiding the risk altogether by changing plans or scope, and sharing the risk across stakeholders so no single party bears it alone. Together, these cover the main ways to handle threats in a project.

monitoring and escalation are part of risk governance and ongoing oversight rather than the mitigation actions themselves, and capitalization is not a standard mitigation technique while hedging is a specific tactic that doesn’t alone capture the full set of mitigation methods.