The Project Risk management strategies are important as it determines to quantify the risk. How the quantification is done?
After we determine the probability of the occurrence of the risk or likelihood and the impact of the risk, the risk quantification becomes,
RISK= Likelihood X Impact.
Now project Risk strategies are closely based on the organization’s or Risk strategies. And that determines the what should be the
Project Risk Responses
When a project starts, An organization’s risk taking ability or how much risk the organization is ready to accept is document as part of risk strategies. This risk taking attitude is known as
Project board sets this limit, so that project management team can handle the risks and also know about the tolerance which is set. This is known as
Now the project may have risks which is beyond this tolerance. So during the risk strategies, how to deal with the risks are strategized for the identified risks in the risk register. This is also known as
We have already seen the different Risk responses and we will see them one by one.
There is a situation when the risks seems to be better to deal by completely avoiding this for the time being. let’s take an scenario. If an identified resource who is considered to work for one of the major process to complete the project like a Marketing Manager who is responsible for over all marketing of the product from its inception stage and that will in turn increase the market share once the product is launched.If during the risk analysis, it is found there is a chance that Marketing Manager will be going for leave due to some family issues, what should be the risk response? One of the decision is taken by the concerned team to replace him with another person to take care of the project. This risk response is known as AVOID or to avoid the risk completely before it occurs.
We will discuss about the other risk responses in the coming days.