Risk Response Planning
Risk response planning involves strategies and documentation of risks. Or, how you and your team will deal with risks. The four ways you can respond to risk that should be included in your risk management plan are:
Avoiding Risk - To avoid risks, you can first identify them by past project experience and documentation of that experience. Analyze what risks may occur upfront at your project initiation meeting. Clarify if potential risks are low, high, or acceptable risks. If you can conquer any potential risk first, your response planning can help you avoid the risk altogether.
Transferring Risk - Often, an identified risk can be transferred to a third party. Remember, when setting up your risk transference controls, it does not mean a risk will go away. It only means you have set a team or outside source to handle the risk. A good risk response plan will identify who certain risks will be transferred to and what you expect from them.
Mitigating Risk - This is a control process that allows you to stop a risk before it starts or bring it to an acceptable level. It identifies potential threats first so you and your team can take appropriate steps to keep the risk from triggering. A good way to mitigate risk is to set a contingency plan that will deal with the risk when it occurs.
Accepting Risk - Accepting risks on your projects is a must for risk response planning. It is also a strategy of sorts and is only used when risks are considered low, or for small risks. Planning for these risks includes recognizing what they may be and adjusting small areas within a project, such as identifying a cost or schedule that might have been missed. Acceptable risk can also be considered passive where no action is taken at all.