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HRCI Exam PHR Topic 3 Question 11 Discussion
Topic #: 3
An organization is considering services it can successfully provide to its customers. One of the services, however, is deemed to be difficult to offer with a high degree of certainty of success. The organization has decided not to offer the service because of the risk in offering the service, and failing. What risk response is used in this scenario?
This is an example of the avoidance risk response. Avoidance are preventive actions, workarounds, and decisions to avoid a negative risk event.
Answer option A is incorrect. Transference is a risk response that transfers the risk to a third party - usually for a fee.
Answer option D is incorrect. Mitigation is a risk response to reduce the probability and/or impact of a negative risk event.
Answer option B is incorrect. Sharing is a risk response that shares a positive risk event with another party.
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