Risk Response

Individual Risk (Threat) Response

• Escalate
  • Response to a risk exceeds the project manager's authority
  • When risk impacts org strategy or require changes outside the project's scope
• Avoid
  • Involves to eliminate threat by changing project plan or scope to sidestep the risk entirely
  • When risk is identified early and avoiding it is feasible wihtout major impact
• Mitigate
  • Reduce the probability of occurance or impact
  • When risks cannot be avoided but can be lessened
• Transfer
  • Shifts the ownership of the risk to a third party usually through insurance, contracts or outsourcing
  • Suitable for financial risks where 3rd parties can manage them more efficiently
• Accept
  • Acknowledge without proactive action due to low impact or cost of response outweighing the benefit
  • When risks are minor or unavoidable

Individual Risk (Opportunities) Response

• Escalate
  • Response to an opportunity exceeding the project manager's authority
  • When opportunity impacts org strategy or require changes outside the project's scope
• Enhance
  • Involves increasing the probability or the impact of the opportunity
  • When proactive steps can maximise the likelihood of the opportunity occuring
• Share
  • Allocate some or all of the ownerhship of an opportunity to a third party who can capture the best benefit
  • When collaboration with external partners can enhance benefits
• Exploit
  • When opportunity is realised by taking decisive actions to make it happen
  • When it is essential to capitallize on an opportunity to achieve project outcomes
• Accept
  • Acknowledge without proactive action due to low impact or probability
  • When cost of enhancing or exploiting is more than the benefit