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Saturday, 27 January 2007 17:32

Risk Response Planning

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Risk Response Planning is the process of developing options, and determining actions to enhance opportunities and reduce threats to the project’s objectives. It follows the Qualitative Risk Analysis and Quantitative Risk Analysis processes. It includes the identification and assignment of one or more persons (the “risk response owner”) to take responsibility for each agreed-to and funded risk response. Risk Response Planning addresses the risks by their priority, inserting resources and activities into the budget, schedule, and project management plan, as needed. 


Negative Risk Response Strategies

  • Avoidance - The project plan is altered to avoid the identified risk.
  • Mitigation - Effort is made to reduce the probability, impact, or both of an identified risk in the project before the risk event occurs.
  • Transference - The risk is assigned to a third party, usually for a fee. The risk still exists, but the responsibility is deflected to the third party.


Positive Risk Response Strategies
Tools and Techniques for Risk Response Planning; it’s important to know how to handle both positive and negative risk.

  • Exploit - Used in conjunction with positive impacts where the host organization wants to ensure the positive risk definitely happens.
  • Share - 3rd party partnerships that include forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures, which can be established with the express purpose of managing opportunities.
  • Enhance - Seeks to facilitate or strengthen the cause of the opportunity, and proactively targeting and reinforcing its trigger conditions, to potentially increase probability.

 

 

Read 8208 times Last modified on Thursday, 10 December 2009 22:15

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