Risk Response Planning

Risk Response Planning is a crucial phase in the project risk management process as defined by PMI. It involves developing options and actions to enhance opportunities and reduce threats to project objectives. After risks have been identified and analyzed for their probability and impact, project teams must determine how to address each significant risk. Risk Response Planning includes selecting strategies appropriate for each risk based on its priority and the organization's risk tolerance. For threats, these strategies typically include: 1. Avoid: Eliminating the threat by changing the project plan 2. Transfer: Shifting impact and ownership to a third party 3. Mitigate: Reducing probability and/or impact to an acceptable threshold 4. Accept: Acknowledging the risk but taking no proactive action For opportunities, strategies include: 1. Exploit: Ensuring the opportunity happens 2. Share: Allocating ownership to a third party better able to capture the opportunity 3. Enhance: Increasing probability and/or impact 4. Accept: Being willing to take advantage if the opportunity arises The planning process produces risk response plans that detail: - The chosen strategy - Specific actions to implement that strategy - Budget and schedule impacts - Assigned risk owners responsible for implementation - Triggers that indicate when responses should be executed - Contingency plans and fallback plans when primary responses aren't effective Effective risk response planning requires creativity and appropriate resource allocation. The responses themselves may introduce secondary risks that must also be identified and planned for. The process concludes with updating the risk register and project management plan to incorporate the approved response strategies, ensuring they become an integrated part of project execution.

Risk Response Planning is a crucial phase in the project risk management process as defined by PMI. It involves developing options and actions to enhance opportunities and reduce threats to project o…

Concepts covered: Integration of Risk Responses into Project Plans, Contingency Planning, Assigning Risk Owners, Managing Residual and Secondary Risks, Risk Budgeting and Resourcing, Fallback Planning, Defining Risk Triggers, Risk Response Effectiveness Evaluation, Risk Response Strategies