What are the four major types of risk responses?

• A. Eliminate, Reduce, Insure, Outsource
• B. Avoid, Mitigate, Transfer, Accept
• C. Avoid, Control, Transfer, Retain
• D. Plan, Act, Monitor, Close

Answer: (B)

Managing project risk involves four main response options: avoid, mitigate, transfer, and accept. Avoid means changing the plan so the risk no longer exists, such as selecting a different design or method that eliminates the hazard or uncertainty. Mitigate is about reducing either the likelihood of the event or its impact, for example by adding safety measures, using more reliable materials, or tightening workmanship controls. Transfer shifts the risk to another party, commonly through contracts or insurance—like requiring a subcontractor to carry specific liability coverage or purchasing insurance to cover potential losses. Accept means acknowledging the risk and deciding not to actively change the plan, while monitoring it and budgeting for possible impacts, typically when the risk is low or the cost of preventing it outweighs the benefit.

Some other phrasing uses different terms like control or retain, or mixes in lifecycle steps, but the standard four recognized for risk response on a construction project are avoid, mitigate, transfer, and accept.