Certified Business Analysis Professional (CBAP) Practice Test 2026 - Free CBAP Practice Questions and Study Guide

Outsourcing a portion of a project to manage a risk effectively is an example of transference. This approach involves shifting the responsibility for managing a risk to a third party, thereby reducing the impact on the organization that is undertaking the project. By outsourcing, the project team can transfer the risk associated with certain tasks or components to another organization that may be better equipped to handle it, whether due to expertise, resources, or experience.

In this context, transference allows the original organization to minimize its exposure to the risk. Instead of trying to mitigate the risk internally, which would involve implementing measures to reduce its severity or likelihood, or accepting the risk entirely by acknowledging it without any action, transference provides a proactive strategy. Thus, the project can proceed without the burden of that specific risk, as it is now managed by an external entity.

The concept of collaboration, while relevant in project management, does not specifically address risk management in the same way. Instead, it focuses on working together with stakeholders or team members to achieve common goals.