Avoid
Change your strategy or plans to avoid the risk.Mitigate
Take action to reduce the risk. For example, work procedures and equipment designed to reduce workplace safety risks.Transfer
Transfer the risk to a third party. For example, purchase fire insurance for an unfinished building.Accept
Decide to take the risk. Generally speaking, all strategies and plans involve some level of risk. Risk also has a relationship with reward whereby reducing risk towards zero can also reduce potential payback.Share
Distributing the risk across multiple partners, teams or projects. For example, four projects each have a software architect and each identifies the risk that the software architect is a critical resource. They decide to share the risk by pooling the software architects into a team that provides a service to all four projects. If one architect quits, the service can be continued.Contingency
Making plans to handle the risk if it occurs. For example, back-out procedures that can restore a system if a launch fails.Enhance
Enhancement is a response for a positive risk. Project management methodologies may view finishing a task early or under budget as a positive risk. Enhancement is an action that is taken to increase the chance of the risk occurring.Exploit
Another treatment for positive risks. Exploiting a risk is to make use of resources that become available if the risk occurs. For example, if a task finishes early, you plan to reassign the resource to more work.| Overview: Risk Response | ||
Type | ||
Definition | The process of controlling identified risks. | |
Also Known As | ||
Notes | The term risk response is strongly associated with project management with risk treatment being the more common risk management term. | |
Related Concepts | ||
