Ace the CBAP Exam 2026 – Unleash Your Business Analysis Superpowers!

Risk mitigation is best defined as the decrease of a risk by lowering the probability or impact of the risk event. This approach involves identifying potential risks associated with a project or process and implementing strategies to reduce either the likelihood of those risks occurring or the severity of their consequences should they occur. By focusing on both probability and impact, organizations can create a more balanced risk management strategy that not only prepares them for potential challenges but also enhances their overall resilience.

In this context, the other options represent different strategies related to risk management. Developing a contingency plan pertains to planning for contingencies should risks materialize, rather than actively reducing the risks themselves. Transference is a risk management approach that involves shifting the responsibility for certain risks to another party, which does not directly mitigate the risks but rather shares or transfers the burden. Finally, minimizing a threat by eliminating its probable cause suggests a more aggressive approach to risk management that may not always be feasible or necessary in all situations, as some risks can only be partially managed rather than entirely eliminated.