Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 – All-in-One Guide to Master Your Certification!

A project manager might consider avoiding a risk primarily when the risk poses a significant threat to project goals. In risk management, avoiding a risk involves changing the project plan or approach to eliminate the risk entirely or prevent it from occurring. This is typically warranted when the potential negative impact of the risk is substantial enough to jeopardize the project's success or objectives.

In scenarios where risks are assessed as low impact, the project manager may choose to accept them instead of implementing avoidance strategies, as the costs and resources required to avoid such risks may outweigh any potential benefits. Similarly, when resources are available to manage a risk, it is often more practical to mitigate or transfer the risk rather than avoid it altogether. Lastly, when potential benefits outweigh the risks, the project manager is more likely to take calculated risks rather than avoid them, as the opportunity for gain justifies the exposure to risk. Thus, significant threats to project goals are indeed the scenarios where avoiding the risk becomes a critical strategy for project managers.