The Plan Risk Response Process, Tools and Techniques
The Plan Risk Response process is a critical step in project management that involves identifying potential risks, analyzing their impact and probability, and developing strategies to mitigate or avoid them. This process involves several steps, including identifying risk triggers, assessing the likelihood and impact of each risk, developing response strategies, and monitoring and controlling risks throughout the project lifecycle.
Risk Response Strategies
One common risk response strategy is to accept the risk, which means that the project team acknowledges the risk but does not take any action to mitigate it (Lewis, 2019). For example, a construction project manager may accept the risk of bad weather delaying construction progress and plan for contingencies such as extending the project timeline or increasing the number of workers.
Another strategy is to share the risk, which involves transferring some or all of the risk to another party. Finally, escalation strategies involve bringing high-risk issues to higher levels of management for resolution. For example, a project manager may escalate a risk related to budget overruns to senior management for additional funding or resource allocation (Lewis, 2019). Having a risk response strategy in place is critical for project managers because it enables them to proactively identify and manage potential risks that could impact project success.
Positive and Negative Risks
One positive risk for a construction project could be that the project is completed ahead of schedule due to favorable weather conditions. This could result in cost savings and increased client satisfaction. One negative risk for the same project could be that there is a delay in obtaining necessary permits, which could lead to costly project delays and potential legal issues.
Finding the Proper Risk Response Strategy
In the case of the permit delay, the best strategy would be to escalate the issue to higher levels of management. By escalating the issue, senior management can allocate additional resources or work with the necessary authorities to expedite the permit process, minimizing the impact of the risk on the project.
Determining the Risk Response Strategy
To determine the risk response and implementation strategies for each risk in a project, the team should work together in a structured and collaborative manner. This involves several steps. First, the team should identify all potential risks that may impact the project and prioritize them based on their likelihood and impact. Next, they should assess each risk to determine its possible impact on the project, the possibility of occurrence, and the timeframe in which it may occur.
Reference
Lewis, M. (2019). The fifth risk. W.W. Norton.