7 Risk Response
7 Risk Response
7 Risk Response
02/04/2024
Case Study : RideShare+
• The key benefit of this process is that it identifies appropriate ways to address
overall project risk and individual project risks.
• This process also allocates resources and inserts activities into project
documents and the project management plan as needed.
Requirements for planning risk response
● Risk management plan - In this process, levels of risk and risk management roles and
responsibilities are used.
Requirements for planning risk response
● Cost baseline - The cost baseline has information on the contingency fund that is
allocated to respond to risks.
• Includes a contingency reserve for responding to risks. The budget might allocate
specific amounts for mitigating risks like technological hurdles in Project Phoenix
or adverse customer reactions to dynamic pricing in Project Pegasus
PROJECT DOCUMENTS
● Lessons learned register - The project's earlier phases' effective risk responses are
examined to see if any lessons learned about them can be applied to the remaining
phases.
• Past projects within RideShare+ that introduced new features or faced significant
risks can offer valuable insights. For example, previous challenges in algorithm
development could inform risk planning for Project Pegasus.
PROJECT DOCUMENTS CNTD…
● Project schedule - The schedule is used to determine how agreed-upon risk responses will
be scheduled alongside other project activities.
• Incorporates risk response activities into the overall timeline. Risk mitigation actions,
such as additional testing phases for the carpooling algorithm, would be scheduled
to ensure timely project progression.
● Risk register & Risk report. - Specific project risks that have been identified, prioritised,
and for which risk responses are necessary are detailed in the risk register. The choice of
appropriate risk responses can be influenced by the priority level assigned to each risk.
ENTERPRISE ENVIRONMENTAL FACTORS
● Enterprise Environmental Factors (EEFs) can be used to plan risk response by providing
crucial contextual information about the organization's culture, structure, and external
influences, which enables risk managers to tailor response strategies effectively.
Expert judgment
● Consulting with experts in real-time data processing for Project Phoenix or dynamic
pricing models for Project Pegasus to validate the chosen risk responses.
● Using historical data and predictive models to assess the potential impact of
identified risks on project timelines and budgets. For instance, analyzing user
feedback on similar features to gauge potential acceptance and resistance.
Interpersonal and team responses
● Risk transfer does not remove the risk, but simply makes another party responsible for
managing the risk.
• The project team acts to reduce the probability of occurrence or impact of a risk to point
where it can be accepted.
• Adopting less complex processes, conducting more tests, use genuine raw material or
4. Risk Acceptance
• If all the above strategies does not work project manager is compelled to accept the certain
risks.
• Decides to acknowledge the risk and not take any action unless the risk occurs.
Refer to the case study: RideShare+
Avoidance:
• For Phoenix, this could involve selecting more reliable technology or adjusting features to
ensure privacy and data protection, thereby avoiding regulatory risks.
• For Pegasus, avoiding market risks by conducting market research before full implementation.
Mitigation:
• Phoenix could mitigate technical risks by incorporating additional testing phases or pilot
programs.
• Pegasus might mitigate backlash from dynamic pricing by introducing it gradually and with
clear communication to users.
Refer to the case study: RideShare+
Transfer:
Both projects could consider insurance or outsourcing certain high-risk components.
Acceptance:
For risks deemed low-priority or with low impact, both projects might simply prepare
contingency plans without taking proactive steps to avoid or mitigate them.
Risk Responses - Strategies for positive risks
Strategies for Positive Risks
1. Exploit
• Taking actions to ensure that an opportunity will happen or have a greater impact.
• This proactive approach to risk management enables organizations to capitalize on
potential benefits and gain a competitive edge in dynamic and uncertain environments.
2. Share
4. Accept
Acknowledge and accept the existence of positive risks as potential opportunities for the
project or organization.
Understand that positive risks can contribute to achieving objectives, adding value, or creating
competitive advantages.
Monitor Risk
Monitor risk is the process of monitoring the
implementation of ,
earned value, variance analysis, and forecasting data, that may be analyzed to offer
project work performance information. This data may be useful for tracking risks
associated with performance.
Tools and Techniques used for monitoring risks
• Data Analysis
Data analysis, on the other hand, helps in examining trends, patterns, and
anomalies in data related to risk indicators, enabling proactive risk identification and
response.
● Reserve analysis
• Audits
• Audit provide a platform to review risk management practices, assess controls, and identify
• Meetings
• Regular meetings provide an opportunity to track the progress of risk mitigation efforts, review
key risk indicators, and adjust strategies as needed to address evolving risks effectively.
Results of monitor risks
Change requests
● Reviewing change requests helps monitor risks by evaluating their potential impact
on project scope, schedule, budget, and other constraints
Project management plan updates
● These updates ensure that risk management remains aligned with project goals and
adapts to changing risk profiles.
about identified risks, their status, mitigation actions, and any changes in risk exposure
Risk report
● Monitoring risk reports facilitates informed decision-making by stakeholders, fosters risk
awareness, and supports proactive risk management actions