From Project Manager's Spotlight on Risk Management
You ve identified your risks, analyzed them for their impacts on the project, assigned probabilities and impact values, determined an expected value, and ranked them in order. You ve also determined which of the risks, given all those conditions, require response plans. This chapter discusses what risk response plans are, the techniques for developing response plans, and how to document and write plans for those risks that have a high probability and high impact on the project. Let s get to it.
Risk Response Planning
Risk Response Planning is the process of deciding what actions to take to reduce threats (especially to schedule and cost) while taking advantage of the opportunities other risks present.
Typically, you ll want to develop risk response plans for risks with the potential for high probability and high impact. It isn t efficient to spend time writing response plans for risks you ve determined aren t likely to occur and won t impact the project significantly if they do. For example, if I m building a tourist center in the Mojave Desert, I wouldn t spend time on a risk response plan for the possibility of rain. It does rain in the Mojave (an average of 2.5 inches per year), so the possibility exists, but it s highly unlikely it would impact my project. I ll deal with these types of risks in the Contingency Planning section a little later in this chapter.
| Note | Developing well-written, detailed risk response plans will increase your chances for a successful project and decrease your overall project risk. |
Remember that...
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