A-Z Popular Blog Risk Search »
Risk
 Advertisements
Risks
Key Concepts
Risks

8 Types of Risk Response

 , updated on
Risk response is the process of controlling identified risks. This is a basic step in any risk management process. Risk response is a planning and decision making process whereby stakeholders decide how to deal with each risk. The following are the basic types of risk response.

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

Risk Management

This is the complete list of articles we have written about risk management.
Acceptable Risk
Business As Usual
Business Impact
Business Risks
Calculated Risk
Cascading Failure
Contingency Plan
Contingency Planning
Disaster Preparedness
Dread Risks
Economic Risk
ERM
Financial Risk
Innovation Risk
Insurance
Investing Risk
Moment Of Risk
Plan Template
Political Risk
Positive Risk
Project Risk
Reputational Risk
Residual Risk
Resilience
Resource Risk
Risk
Risk Acceptance
Risk Analysis
Risk Appetite
Risk Awareness
Risk Capacity
Risk Communication
Risk Contingency
Risk Control
Risk Culture
Risk Estimates
Risk Evaluation
Risk Exposure
Risk Impact
Risk Intelligence
Risk Management
Risk Matrix
Risk Measurement
Risk Mitigation
Risk Monitoring
Risk Objectives
Risk Prevention
Risk Probability
Risk Profile
Risk Reduction
Risk Register
Risk Response
Risk Sharing
Risk Taking
Risk Tolerance
Risk Treatment
Risk Trigger
Risk-Reward Ratio
Seasonal Risk
Secondary Risk
Special Risks
Strategy Risk
Tactical Risk
Technology Risk
Unknown Risks
Upside Risk
More ...
If you enjoyed this page, please consider bookmarking Simplicable.
 

Project Risk

A list of common project risks.

Cost Contingency

The common types of cost contingency.

Risk Minimization vs Risk Management

The difference between risk minimization and risk management.

Requirements Failure

The common types of requirements failure.

Risk Aversion

The definition of risk aversion with examples.

Risk Capacity

An overview of risk capacity with examples.

Performance Risk

The definition of performance risk with examples.

External Risk

The definition of external risk with examples.

Risk Analysis

A complete guide to risk analysis.

Risk Probability

The common ways to model risk probability.

Qualitative Risk Analysis

A definition of qualitative risk analysis with an example.

Cost Of Risk

A definition of cost of risk with examples.

Risk Perception

A definition of risk perception with examples.

Risk vs Hazard

The difference between a risk and a hazard with examples.

Swot Threats

A list of threats for SWOT analysis.

What-if Analysis

The definition of what-if analysis with examples.

External Factors

A list of common external factors.

Risk Exposure

A definition of risk exposure with example calculations.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map