Risk Response Strategy Definition

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Creating corrective processes which strategically confront the risks which have been identified and quantified is defined as a risk response strategy. Strategic options are developed, actions are determined, and opportunities are capitalized upon, when the risk response strategy is created. Risk tolerance is the basis for the risk response strategy. Risks which have a high severity have the greatest impact on cost and the schedule of an organization. Once the risk analysis and evaluation process has been finalized, the appropriate actions are taken to achieve the project objective. The project’s schedule, budget, scope or quality is revised through the mitigation of risk. An integral part of managing a project is risk management. Specific action…show more content…
Positive risk do embody a level of uncertainty. Cost and other resources utilized in the project are conserved. Opportunities are created for positive risks to occur. To increase the probability of a positive risk occurrence four strategies can be applied. These strategies are Exploit, Share, Enhance and Accept. No action is required to recognize the opportunity in the acceptance response strategy. The opportunity receives no interference. In certain situations it may be required to clarify with the project manager why the acceptance response has been determined. When the cause of the opportunity is the primary focus, the opportunity is enhanced. The factors are determined which cause this risk to happen. Organizations formulate how these factors can be influenced. Effective articulation of the advantages attained from these risks is a necessary requirement. The schedule is compressed with fast-tracking to achieve project completion ahead of time. The realization of opportunities provides the foundation for the enhance response strategy. The primary focus of the exploit response strategy is to recognize the
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