Risk response planning entails identifying measures to mitigate or eliminate project dangers, as well as chances to expand their impact. Project managers should try and prevent dangers from occurring. Project managers should also endeavor to ensure such opportunities arise. Similarly, the project manager is responsible for reducing the likelihood and impact of risks while increasing the likelihood and impact of opportunities.

For risks that cannot be mitigated, the project manager must have a solid contingency plan in place and a response plan in case the contingencies fail.

It is not necessary to eliminate all project risks. Throughout the project, a project manager should keep an eye on risk. Risk management is an iterative process. The preparation for qualitative risk, quantitative risk, and risk response does not end once you start working on the project.

Threats can be dealt with in a variety of ways, including:

  • Concentrate on eradicating the source of the problem and hence the threat.
  • Certain dangers cannot be eliminated. Their impact, however, can be mitigated. This is referred to as risk mitigation.
  • Pass the risk on to someone else. Risk transfers include things like insurance purchases, warranties, and guarantees.

The following are some options for opportunities response strategies:

  • Increase work or alter the project to ensure that the opportunity arises.
  • Make risk events more likely and have a positive influence.
  • Assign ownership of an opportunity to a third party.

Approaches for dealing with both threats and opportunities include:

  • In a risk event, passive acceptance allows the action to be determined as needed. Active acceptance may entail putting in place contingency plans in the event of a risk and allocating time and money reserves to the project. Stakeholders must be informed of the risk acceptance decision.
  • Risks that the project cannot monitor and manage are escalated to a higher level, such as program management.

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Imelda Bouchard is the owner of Gov Relations. She graduated with a degree in Business Administration in Finance​ at the University of Houston-Downtown. Imelda has over a decade of experience working in the finance industry. Following her stint at an international fintech company, she has decided to create a platform where businesses can make use of great business ideas.