Analyze risk response plans & procedures

The risk response process is followed by qualitative risk analysis and quantitative risk analysis, including the identification and assignment of relevant individuals or persons with responsibility for approved and financially supported risk response measures.

 

1. planning risk response

 refers to the process of formulating a plan to increase the opportunity for the realization of project objectives and reduce the threat of failure, and deciding on countermeasures to be taken.

 

2. DETAILED EXPLANATION OF ITO FOR PLANNING RISK RESPONSE:

(1) response strategy to negative risks or threats: strategies for risks or threats that may have a negative impact on the goals of the project.

(2) strategies for responding to positive risks and opportunities: strategies for risks that may have a positive impact on project objectives.

(3) emergency response strategy: specific response measures for specific incidents.

 

3. negative risk or threat response strategy:

(1) avoidance: change the project plan to exclude risk conditions. for example, to increase the progress or reduce the range

(2) transfer: transfer of the consequences and responsibilities of risks to a third party, such as insurance, performance guarantee, contract, etc

(3) mitigation: take steps to reduce the probability or consequences of risk to an acceptable threshold. for example, adding redundant components to a system mitigates the impact of the failure of the main components.

(4) acceptance: no response measures will be taken (when other methods are not economically effective). the most common proactive acceptance strategy is to build an emergency reserve and allocate time, money, or resources to deal with risks. passive acceptance of doing nothing.

 

4. strategies to deal with positive risks and opportunities:

(1) pioneering: ensuring that opportunities are realized

(2) sharing: assign risk responsibility to the third party that can best obtain opportunities for the benefit of the project

(3) improvement: increase the probability of positive risks and improve project opportunities

(4) acceptance: both negative and positive

 

5. The output of planning risk response also includes

the update of the risk register, which includes the actions, budgets and progress activities required to deal with the strategy. this is the third update of the risk register.

 

risk response measures must be appropriate to the level of importance of risk, cost-effective to meet challenges, and must be timely and realistic in the context of the project. the next section further plans how to control risk.