In the PMBOK® Guide, specifically within the Plan Risk Responses process, project managers select strategies to deal with individual project risks. Each strategy has a specific goal regarding the probability or impact of the threat.

Why Choice B is correct:

Mitigation Definition: Mitigation is a risk response strategy whereby the project team acts to reduce the probability of occurrence or the impact of a threat.

Targeting Likelihood: The prompt specifically states the sponsor wants to " reduce the likelihood. " By taking early action—such as adding more tests, choosing a more stable supplier, or conducting extra training—the project manager is lowering the chances (likelihood) of the risk event happening.

Cost-Effectiveness: Mitigation is often more cost-effective than trying to repair the damage after the risk has occurred.

Analysis of other options:

A (Escalate): This strategy is used when a risk is outside the scope of the project or when the project manager lacks the authority to deal with it. It moves the ownership to a higher level in the organization, but it doesn ' t inherently reduce the likelihood of the risk.

C (Avoid): This strategy involves changing the project management plan to eliminate the threat entirely (reducing the probability to 0%). While it addresses likelihood, the prompt asks for a reduction, not total elimination. Avoidance usually requires changing scope or strategy (e.g., removing a feature).

D (Transfer): This involves shifting the ownership of a threat to a third party (e.g., insurance, warranties, or fixed-price contracts). Transfer typically reduces the financial impact on the project, but it does not reduce the likelihood of the event occurring (the event can still happen, but someone else pays for it).

Key Concept: The Project Management Institute (PMI) emphasizes that Mitigation (Choice B) is one of the most common proactive strategies. It focuses on taking action now to change the future probability of a negative event, providing the sponsor with a higher level of confidence in the project ' s stability without necessarily canceling parts of the project scope.