CBCP-002 Practice Exam Questions and Answers

The four T’s of risk guidance produced by the Office of Government Commerce are transfer, tolerate, treat, and terminate. They are:

• Transfer: This strategy involves transferring or sharing some or all of the responsibility or impact of a risk to another party, such as an insurer, a supplier, or a partner.
• Tolerate: This strategy involves accepting or retaining a risk without taking any further action to reduce it, either because the risk level is acceptable or because the cost or effort of reducing it is not justified.
• Treat: This strategy involves taking steps to reduce the likelihood or impact of a risk to an acceptable level, such as implementing controls, mitigations, or contingency plans.
• Terminate: This strategy involves eliminating or avoiding a risk by discontinuing or changing the activity that causes it. Verified References: https://www.investopedia.com/terms/t/the-four-ts.asp https://www.thebci.org/training-qualifications/good-practice-guidelines.html