Project risk management

Page 71

Chapter 5

Risk Response

Risk Response Tools and Techniques After we have identified and analyzed the risks we know where to focus our efforts. The output from the analysis provides a ranked risk register with the risks of greatest significance to project objectives determined. Apt response actions to significant risks must be cost effective and realistic. Critical risks must be met with vigorous response actions, lower ranking risks should receive response actions commensurate with their significance. Documentation of Response Actions Document the response action by describing the action, which work activities it will affect and the cost of the response action. Identify the person(s) responsible for successful implementation of the response action. Also consider the time impacts of the response action and how the risk response may affect the overall project and/or other risks.

High

Transfer (share)

Avoid (exploit)

Low

High impact and high probability risks require aggressive responses (threats should be avoided and opportunities exploited if possible).

Probability

Planning Risk Response Actions • Select a response action - the action selected is influence by the level of the risk consider the figure below:

Accept

Mitigate (Enhance)

Low

High Impact

Simple Response Matrix Figure 5-3

The next two figures on the following pages depict typical response actions for threats and for opportunities depending on the region of probability and impact the risk resides.

Project Risk Management Guidance for WSDOT Projects October 2013

Page 5-7


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