Risk Response Planning and Strategies
Risks having been identified, the next task is what is to be done about them, or in managerial jargon: risk response planning.
Risk response planning is the process of developing the procedures and techniques to enhance opportunities and reduce threats to the project’s objectives. In this process it will be necessary to assign individuals who will be responsible for each risk and generate a response that can be used for each risk.
Risk response strategies are techniques that will be used to reduce the effect or probability of the identified, or even the unidentified, risks.
Of course, in the case of opportunities we should want to increase the probability and increase the impact. The opportunity can be exploited by adding resources to encourage and maximize the effect. Opportunities can be shared. In the case where our own organization is not able to maximize an opportunity, a partnership or other arrangement with another organization may be made where both organizations benefit in a greater way than one of them can. By enhancing an opportunity we can maximize the drivers that positively impact the risks. Both impact drivers and probability drivers may be enhanced.
In terms of the risk strategy that should be employed, a qualitative or quantitative evaluation of the severity of the risk will be a guideline as to how much time, money, and effort should be spent on the strategy to limit the risk.