1. Right Answer: A
Explanation: Risk mitigation implies a reduction in the probability and/or impact of an adverse risk event to be within acceptable threshold limits. Taking early actions to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred.Incorrect Answers:B: Avoidance changes the project plan to avoid the risk altogether.C: Transference requires shifting some or all of the negative impacts of a threat, along with the ownership of the response, to a third party. Transferring the risk simply gives another party the responsibility for its management-it does not eliminate it.Transferring the liability for a risk is most effective in dealing with financial risk exposure. Risk transference nearly always involves payment of a risk premium to the party taking on the risk.D: Enhancing is actually a positive risk response. This strategy is used to increase the probability and/or the positive impact of an opportunity. Identifying and maximizing the key drivers of these positive-impact risks may increase the probability of their occurrence.

2. Right Answer: B
Explanation: The plan risk response project management process aims to reduce the threats to the project objectives and to increase opportunities. It follows the perform qualitative risk analysis process and perform quantitative risk analysis process. Plan risk response process includes the risk response owner to take the job for each agreed-to and funded risk response. This process addresses the risks by their priorities, schedules the project management plan as required, and inserts resources and activities into the budget. The inputs to the plan risk response process are as follows:Risk register -Risk management plan -Incorrect Answers:A: Monitor and Control Risk is the process of implementing risk response plans, tracking identified risks, monitoring residual risk, identifying new risks, and evaluating risk process effectiveness throughout the project. It can involve choosing alternative strategies, executing a contingency or fallback plan, taking corrective action, and modifying the project management plan.C: Identify Risks is the process of determining which risks may affect the project. It also documents risks' characteristics. The Identify Risks process is part of theProject Risk Management knowledge area. As new risks may evolve or become known as the project progresses through its life cycle, Identify Risks is an iterative process. The process should involve the project team so that they can develop and maintain a sense of ownership and responsibility for the risks and associated risk response actions. Risk Register is the only output of this process. D: Qualitative analysis is the definition of risk factors in terms of high/medium/low or a numeric scale (1 to 10). Hence it determines the nature of risk on a relative scale. Some of the qualitative methods of risk analysis are: Scenario analysis- This is a forward-looking process that can reflect risk for a given point in time. Risk Control Self -assessment (RCSA) - RCSA is used by enterprises (like banks) for the identification and evaluation of operational risk exposure. It is a logical first step and assumes that business owners and managers are closest to the issues and have the most expertise as to the source of the risk. RCSA is a constructive process in compelling business owners to contemplate, and then explain, the issues at hand with the added benefit of increasing their accountability.

3. Right Answer: D
Explanation: Among the given choices only Acceptance response is used for negative risk events. Risk acceptance means that no action is taken relative to a particular risk; loss is accepted if it occurs. If an enterprise adopts a risk acceptance, it should carefully consider who can accept the risk. Risk should be accepted only by senior management in relationship with senior management and the board. There are two alternatives to the acceptance strategy, passive and active. Passive acceptance means that enterprise has made no plan to avoid or mitigate the risk but willing to accept the consequences of the risk. Active acceptance is the second strategy and might include developing contingency plans and reserves to deal with risks.Incorrect Answers:A, B, C: These all are used to deal with opportunities or positive risks, and not with negative risks.

4. Right Answer: C
Explanation: Laws and regulations of the country of origin may not be enforceable in foreign country and conversely, it is also true that laws and regulations of the foreign outsourcer may also impact the enterprise. Hence violation of applicable laws may not be recognized or rectified due to lack of knowledge of the local laws.Incorrect Answers:A: Security breach notification is not a problem and also time difference does not play any role in 24/7 environment. Pagers, cellular phones, telephones, etc. are there to communicate the notifications.B: Outsourcing does not remove the enterprise's responsibility regarding internal requirements. Hence monitoring the compliance with its internal security and privacy guidelines is not a problem.D: The need for additional network intrusion detection sensors is not a major problem as it can be easily managed. It only requires addition funding, but can be addressed.

5. Right Answer: D
Explanation: Vulnerabilities detected during assessment should be first evaluated for threat, impact and cost of mitigation. It should be evaluated and prioritized on the basis whether they impose credible threat or not.Incorrect Answers:A, C: These are the further steps that are taken after evaluating vulnerabilities. So, these are not immediate action after detecting vulnerabilities.B: If detected vulnerabilities impose no/negligible threat on an enterprise then it is not cost effective to address it as risk.