Strategies to Respond to Risk
The PMI PMBOK discusses approaches to project risk management and describes four main types of risk response strategies. With the exception of "risk acceptance" these strategies involve actions to eliminate or reduce the negative impacts of risk events and threats. The four strategies are
- Avoidance: adjusting a project plan (tasks, timing, resources, etc.) to protect objectives from negative impacts.
- Transference: transferring the consequences or responsibility of a risk to a third party. Transference does not eliminate a risk, it only shifts responsibility. The most common strategy for risk transference is through well-designed contracts for certain elements of the work.
- Mitigation: reduction in the probability and/or consequences of an adverse risk event to an acceptable level. Usually includes project controls for identifying risk events early in a project and taking formal action before impacts are great.
- Acceptance: the project manager and team understands the risk event or threat, but chooses not to make changes to the project plan or resources to respond to the risk.
Table 8-2 gives some examples of risk response strategies which are appropriate for different types of GIS projects. As in the case of risk identification, a project manager can define specific risk response actions in as detailed a manner as needed to support project management.
|Avoidance Strategies (Prepare plan and project controls to avoid or reduce impact)||Transference Strategies (Shift risk and responsibility to other party)||Mitigation Strategies (Reduce probability or impact by identifying risk event early and taking action)|