Risk Response Planning is a systematic approach within PRINCE2's Risk Theme that involves developing options and determining actions to enhance opportunities and reduce threats to project objectives. It represents the proactive dimension of risk management where theoretical risk assessment transfor…Risk Response Planning is a systematic approach within PRINCE2's Risk Theme that involves developing options and determining actions to enhance opportunities and reduce threats to project objectives. It represents the proactive dimension of risk management where theoretical risk assessment transforms into practical action steps.
PRINCE2 categorizes risk responses into several distinct strategies. For threats, these include avoid (eliminate the threat by changing the project approach), reduce (decrease probability or impact), transfer (shift impact to a third party, often through insurance or contractual arrangements), accept (acknowledge the risk exists but take no proactive action), and share (distribute portions of the risk with other parties). For opportunities, strategies include exploit (ensure the opportunity happens), enhance (increase probability or positive impact), reject (decline to pursue the opportunity), and share (collaborate with others to capture the opportunity).
Effective Risk Response Planning in PRINCE2 requires clear ownership, with each response having a designated owner responsible for implementation. The approach emphasizes proportionality—ensuring that the cost and effort involved in implementing a response are justified by the severity of the risk being addressed. This cost-benefit perspective prevents overinvestment in managing minor risks while ensuring significant risks receive appropriate attention.
The outcomes of Risk Response Planning are documented in the Risk Register, detailing the selected response type, specific actions, responsibilities, timelines, resources required, and budget implications. This documentation becomes a reference point during project execution and a basis for monitoring the effectiveness of implemented responses.
Risk Response Planning connects directly to PRINCE2's Management by Exception principle, as it establishes boundaries for acceptable risk exposure and determines when escalation to higher management levels becomes necessary. It also supports the Focus on Products principle by identifying how risks might affect the quality of project deliverables and developing responses to protect product integrity.
PRINCE2 Foundation: Risk Response Planning Guide
Risk Response Planning: A Complete Guide
Why Risk Response Planning is Important
Risk Response Planning is a critical component of the PRINCE2 methodology because it ensures that projects have systematic ways to deal with uncertain events. It matters because:
• It transforms reactive risk management into proactive management • It increases the likelihood of project success by decreasing threats and maximizing opportunities • It provides clarity and direction when risks materialize • It builds stakeholder confidence that the project team is prepared for potential issues • It is a mandatory aspect of PRINCE2 compliance
What is Risk Response Planning?
Risk Response Planning is part of the Risk theme in PRINCE2 and involves deciding how to address identified risks through appropriate responses. It's the process of developing options and actions to enhance opportunities and reduce threats to project objectives.
In PRINCE2, risk responses fall into categories:
For Threats: • Avoid: Change aspects of the project to eliminate the threat entirely • Reduce: Take actions to decrease probability or impact of the threat • Transfer: Shift impact and ownership to a third party (insurance, contracts) • Accept: Acknowledge the risk but take no action, creating contingency plans instead • Share: Distribute portions of the risk with another party
For Opportunities: • Exploit: Ensure the opportunity definitely happens • Enhance: Increase probability or positive impact • Reject: Decide not to pursue the opportunity • Share: Partner with others to maximize benefit
How Risk Response Planning Works
The process follows these steps:
1. Identification of Risks: Use various techniques to identify potential project risks
2. Assessment: Evaluate probability and impact of each risk
3. Planning Responses: For each risk, determine the most appropriate response type
4. Resource Allocation: Assign responsibilities and resources for implementing responses
5. Documentation: Record all responses in the Risk Register
6. Implementation: Execute planned responses when triggers occur
7. Monitoring: Track effectiveness of responses and adjust as needed
The Risk Management Approach document outlines how risks will be managed throughout the project, while the Risk Register maintains detailed information about each risk including planned responses.
Exam Tips: Answering Questions on Risk Response Planning
• Know the response types: Memorize all response categories for both threats and opportunities
• Understand application contexts: Be able to identify which response is most appropriate in different scenarios
• Focus on PRINCE2 terminology: Use official terms like 'Avoid', 'Reduce', 'Transfer' rather than synonyms
• Remember the sequence: Know that risk identification precedes response planning
• Link to roles: Be clear on who is responsible for risk response planning (Project Manager leads, but Senior User, Senior Supplier and Executive all have input)
• Connect to other themes: Understand how Risk Response Planning affects Plans, Business Case, and Change themes
• Be aware of management products: Know which documents contain risk response information (Risk Register and Risk Management Approach)
• Watch for subtle distinctions: Pay attention to differences between similar response types like 'Transfer' vs 'Share'
• Practice scenario questions: Work through examples where you must select the most appropriate response for a given risk
When faced with exam questions, read carefully to identify whether you're dealing with a threat or opportunity before selecting a response strategy. Notice keywords that might indicate severity, which helps determine if 'Accept' or more active responses are appropriate.