Positive Risk Response
Positive Risk Response is determining what actions the project will take to address risk opportunities.
When to use
Once the risk analysis is complete (both qualitative and quantitative) risk response is prepared for appropriate risks. Early in the project, there are often risk opportunities available to the project team. As the project progresses, many times the negative cost and schedule impact of making the change is greater than the positive benefit. Therefore positive risk opportunities must be sought early in the project.
Whenever a risk changes priority, the risk response should be reassessed.
If a risk response has been implemented in the project plan, but it is later determined to be insufficient to accommodate the risk, additional risk response should be created.
Opportunity: “A risk that would have a positive effect on or more project objectives.” PMBOK® Guide
There are five approaches to Positive Risk Response. The characteristics of the organization and unique features of the project will determine which approach to use.
Change the project plan so that the risk will happen. In this case the focus is on the likelihood aspect of the opportunity. By changing the project plan the opportunity is no longer uncertain but becomes certain. Some opportunities will always remain uncertain, but many can be built into the project.
This approach to an opportunity is to increase the likelihood, the impact, or both. This is often done by changing the resources or timing of an activity.
This is often structured as a joint venture or some other type of risk sharing partnership. The organization that you are “sharing” with will enhance or enable the opportunity. Although they will also expect a portion of the benefit.
In this response, the project team refers the risk to the project stakeholders in order to get adjustment to project boundaries or to get their assistance with taking advantage of the risk factor. This approach should not be used until the first three have been considered and either implemented or rejected.
If you do not select one of the other approaches, you are selecting accept. This approach is appropriate for very small or unlikely risks.
This definition is taken from the Glossary of the Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc., 2017.
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