A Risk Response Strategy is an integral part of a project plan. It could require changes to any part of the project plan. How to implement it in your Project Management Plan It sounds complicated…
Let me simplify it for your benefit in this article.
A Risk Response Strategy is a plan that outlines what you will do to address a risk in your project. The most common risk response strategies to threats are: Mitigate, Avoid. Transfer, Actively Accept. Passively Accept. and Escalate a Ris.
The essence of Risk Response Strategy and Risk Response Plan are the same thing. You can interchange terms.
Below are examples of risk response for both threats or opportunities.
Chapter 1: Risk Response Strategies For Threats
First, identify and log risks into the Risk Register. Next, you will need to conduct a Qualitative risk analysis. You will then decide which Risk Response Strategy you should use for the most severe threats.
The main risk response strategies are:
Avoid Risk
Reduce Impact/Probability of Risk
Transfer Risk
Accept risk and take responsibility
Passively accept risk
Escalate Risk
1. Avoid Risk Response Strategy
Avoid Risk Response Strategy is a strategy to take action to eliminate the threat.
#1.1 Scope Management Risk Avoidance Example
Clients and other stakeholders may provide requirements for the project. They believe that these requirements will help achieve the project’s business goals.
These requirements will often pile up. You will find that your project scope expands and you are able to exceed the budget and time constraints.
It’s easy to see that you have to move deadlines or descope something when you go beyond the constraints. Sometimes you will find yourself in a situation where you can barely fit within the constraints.
This is when you should log a risk that your budget or time reserves are not sufficient (read buffer). You may not be able to deliver on time if something goes wrong.
You can now create a risk response strategy that will allow you to eliminate a portion of the project scope. This will occur if you are behind schedule by more than ten working days.
This will help you manage expectations. Stakeholders are warned that there may be risk. They accept the action plan. If something goes wrong, it will be easier to find the problem.
#1.2 Example of risk avoidance in leadership and stakeholder management
You must ensure that your team members are happy and motivated as a leader and project manager.
You can’t always find people who are perfect matches. Positive conflicts in a team are a good thing.
Sometimes, however, conflicts can escalate beyond professional boundaries. Some people may be dissatisfied in general with the organization.
Negative behavior can be both destructive and motivating for others in the team.
You must try to minimize the impact of conflicting team members. Sometimes, however, nothing works and there is no return on your relationship.
This is a case where you want to avoid further demotivation by getting rid of a conflicting member.
You may also have an authority stakeholder who is a conflict with your team members or you. You will need to take steps to isolate the individual as soon as possible.
It means that you must get involved in internal politics and use your leadership or policies to gain leverage.
#1.3 An example of risk avoidance that impacts the entire project
Before I became a project manager, a sailor was my background. I once worked on a large container vessel.
When the rain started, we were unloading our cargo in Amsterdam. Within minutes, we heard the radio announce that someone had fallen from the fourth-tier container (12 feet) on the deck.
The unloading was stopped by port authorities. We called a helicopter in order to transport this person to a hospital.
