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Risk Response Planning

 


Risk response is the attitude or action that an organization or project can take to manage risk. For each identified risk, a response must be identified. It is the responsibility of the project team to select a risk response for each risk. The possible response options are:

®    Avoidance: Change the project to avoid the risk. Change scope, objectives, etc.

®    Transference: Shift the impact of a risk to a third party (like a subcontractor). It does not eliminate it, it simply shifts responsibility.

®    Mitigation: Take steps to reduce the probability and/or impact of a risk. Taking early action, close monitoring, more testing, etc.

®    Acceptance: Simply accept that this is a risk. In this case, the development team does not take any actions and will accept the cost, schedule, scope, and quality impacts if the risk event occurs.

®    Deferred: A determination of how to address this risk will be addressed at a later time. The results of the risk assessment process are documented in each Risk Statement and summarized in the Risk Register which will be reported on a monthly basis.

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