This lesson focuses on planning risk responses. Risk response includes strategies to cope with negative risk or threats and the appropriate response. [toggle_content title="Transcript"] The next process is plan risk response. This is the last process in planning. Identifying risk is the process that creates the project management plan updates and project document updates. The inputs are risk management plan, and risk register. The tools used are strategies for negative risk response, risks or threats, strategies for positive risks or threats, contingent response strategies and expert judgement. With negative risks, these are associated with avoidance, transference, mitigation and acceptance. Avoidance, with this strategy you are trying to eliminate risk altogether. You don't like risks, you want that risk to be gone. Transference is giving it to a third party. When my wife and I were working on our basement, our project was re-doing drywall. I didn't want the risk of redoing drywall so I was going to meet her quality check. We ended up hiring a third party and I transferred that risk to them. Mitigation is trying to minimize that risk. You are accepting that the risk is going to happen but you are trying to reduce the impact for it. Acceptance, is you know that risk is going to occur, you accept it. Positive, there is exploitation, remember positives are good risks. With exploitation you want to make sure this risk which is positive is going to happen. You'll probably put your best person on the team to ensure whatever it is going to happen. Enhancing, you are trying to take this positive risk and expand upon it. You are putting more sales people on it. You are putting whatever it is to make sure that none of this occur. You are going to profit more out of it. Sharing is supporting this positive risk within the company. If you can think of government proposals you have multiple companies teaming up. There are sharing this risk that could occur which could make them a lot of money. Acceptance is knowing that it is going to occur and just moving on. Contingency response, strategies...that is looking at the risk and trying to figure out if this risk occurs, how am I going to respond to this. What is my back up plan. Expert judgement is just having the expertise in that area and being able to plan risk response to that expertise. [/toggle_content]
Project Management Professional (PMP) - PMI
Our online PMP training course educates on how to initiate, plan and manage a project, as well as the process behind analyzing risk, monitoring and controlling project contracts and how to develop project schedules and budgets.