Back to Project Risk Analysis

Risk Response Planning

5 minutes 5 Questions

Risk Response Planning involves developing strategies to address the most critical risks in a project. This step entails determining the best approach to minimize negative risks (threats) and leverage positive risks (opportunities). There are four main response strategies for negative risks: avoid, transfer, mitigate, and accept. In contrast, there are four strategies for positive risks: exploit, enhance, share, and accept. Each strategy should be evaluated based on effectiveness, cost-efficiency, and alignment with the project's objectives. Once strategies are selected, corresponding actions are developed and integrated into the project's schedule, budget, and scope.

Risk Response Planning - PMP Study Guide

Risk Response Planning forms a significant part of the Project Risk Management knowledge area, as defined in the PMBOK Guide Seventh Edition.

What is Risk Response Planning?
It involves developing approaches and actions to enhance opportunities and reduce threats to the project’s objectives. It includes identifying and assigning a person to take responsibility for each risk so that each risk's response is effectively managed.

Why is it important?
It plays a crucial role in risk management as it provides a platform to understand, assess, and address the risks which can negatively influence the project.

How it works?
The process includes identifying risk, defining responses, assigning owners and developing risk response action plans.

Exam Tips: Answering Questions on Risk Response Planning
1. Understand the risk before providing a response.
2. If the question describes a certain risk and asks for the appropriate response, match it with the correct risk strategy.
3. Always consider both costs and benefits of risk responses.
4. Understand the difference between 'Risk Tolerance' and 'Risk Threshold'.
5. Be aware that Risk responses should be agreed upon by relevant stakeholders.

Test mode:
Start practice test
PMP - Project Risk Analysis Example Questions

Test your knowledge of Amazon Simple Storage Service (S3)

Question 1

You are a project manager responsible for building a new shopping mall. During the project risk management activities, you identify a risk of cost overruns due to potential delays in receiving construction material. What is the best risk response strategy to address this risk?

Correct Answer: Reduce the risk by creating agreements with multiple suppliers.

The best risk response strategy when facing a risk of cost overruns due to potential delays in receiving construction material would be to 'Reduce the risk by creating agreements with multiple suppliers'. This option ensures that if one supplier cannot deliver the materials on time, the project manager can switch to another supplier, thus minimizing the risk of delays and unnecessary cost overruns. 'Ignoring the risk as it is a common issue in construction projects' is not a valid solution because the goal of risk management is not to ignore but to anticipate and mitigate potential issues, regardless of how common they might seem. 'Transferring the risk by hiring another construction company to handle the material procurement' might seem like a good option, but it just shifts the responsibility and does not fully eliminate the risk. The hired company might also face the same issues of potential delays. 'Accepting the risk and creating a contingency reserve to cover the cost overruns' might be an acceptable strategy when no alternate options are available, however, it does not proactively tackle the root cause of the risk – which is the potential delay of material delivery.

Question 2

In Risk Response Planning, the strategy of ________ involves taking action to reduce the probability or impact of a risk.

Correct Answer: Mitigation

The correct answer is 'Mitigation'.

In Risk Response Planning, mitigation is the strategy that involves taking action to reduce the probability or impact of a risk. This approach aims to proactively address potential risks by implementing measures to minimize their likelihood of occurrence or to lessen their potential negative effects on the project.

The other options are incorrect for the following reasons:

'Acceptance' is a strategy where the project team decides to acknowledge the risk and not take any action unless the risk occurs. This does not involve reducing the probability or impact of the risk.

'Avoidance' is a strategy that involves changing the project plan to eliminate the risk entirely. While this does prevent the risk from occurring, it does not specifically reduce the probability or impact of an existing risk.

'Transference' is a strategy that involves shifting the responsibility for managing the risk to a third party. This does not directly reduce the probability or impact of the risk, but rather moves the responsibility to another entity.

Question 3

A software development project is reliant on highly skilled team members from another department, and their availability is uncertain. To reduce the likelihood of project delays due to lack of resources, which risk response strategy should the project manager choose?

Correct Answer: Mitigate

Mitigating the risk involves taking proactive steps to reduce the probability or impact of the risk. In this scenario, the project manager can mitigate the risk of delays due to uncertain availability of key team members by implementing measures such as cross-training other team members, adjusting project schedules, or identifying alternative resources. This reduces the likelihood or impact of the resource-related delays. Avoiding the risk might not be feasible if the project relies on those skills. Transferring the risk typically involves shifting it to a third party, which may not apply here. Accepting the risk would mean doing nothing, which does not help in preventing delays.

Go Premium

Project Management Professional Preparation Package (2024)

  • Earn 35 PDUs needed for your PMP certification
  • 9524 Superior-grade Project Management Professional practice questions.
  • Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
  • Unlock Effortless PMP preparation: 5 full exams.
  • 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
  • Bonus: If you upgrade now you get upgraded access to all courses
  • Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!
More Risk Response Planning questions
17 questions (total)
Start 17 question test