Description
1. Escalate
2. Avoid
3. Transfer
4. Mitigate
5. Accept.
ESCALATE
When the risk or the risk response plan is outside the project it can not be managed by the project manager. So it has to be escalated to the Program or Portfolio Manager. This is escalation.
AVOID
Risk is avoided by completely eliminating the cause of the risk and adopting a new strategy altogether that wouldn’t encounter the risk anymore.
TRANSFER
By using the risk transfer mechanism the risk and its consequences can be faced by some third party (e.g. insurance companies or vendors) rather than by the project that was supposed to face the risk.
MITIGATE
When the risk is handled by attempting to reduce the probability of occurrence and its impact.
ACCEPT
When the risk response is Accept, the risk is faced as-is. The risk is not mitigated. Thre are two kinds of acceptances 1. Passive- when nothing is done and the risk is faced. 2. Active- When some contingency is reserved to accommodate the adverse impacts of the risk.
Where it is Used
It briefly mentions the specific places during project management where the tool or technique can be used.
This tool is used in the following Process Group(s) during the project management
This tool is used in the following Knowledge Areas during the project management
Process Group | Knowledge Area | Activity |
Planning | Project Risk Mgmt. | Plan Risk Responses |
