PMP Exam Question – Risk Management

Which of the following is not a valid instance of risk transference?

A. Use of a Cost Reimbursable contract

B. Warranties

C. Fixed Price contracts

D. Performance bonds

1 thought on “PMP Exam Question – Risk Management

  1. Stramb Gabor

    Correct answer is A.
    A cost-reimbursable contract does not transfer risk to the seller; rather, the risk is with the buyer.
    Risk transference involves shifting the negative impact of a risk, along with the ownership of the response, to a third party.
    Risk transference nearly always involves payment of a premium to the party taking on the risk.
    Examples include performance bonds, warranties, and fixed price contracts.
    PMBOK 6th edition, Page 443.

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