PMBOK® Guide : Plan Risk Responses Strategies for Threats

The video starts with Risk Response Strategies for Threats. When we talk about the risk, it can be positive as well as negative. We record them in the risk register first and then explore how to decrease the possibilities of occurrence of negative risks or Threats. How can we minimize the negative impact this threat may bring on the overall project. The five Risk Response Strategies for Threats are: Escalate, Avoid, Transfer, Mitigate & Accept Escalate and Accept are common in both Threats & Opportunities. Escalate: It is recommended to use this strategy in the end. Do remember as a project manager, you are the owner of the project, so be very specific while escalating it to top management at the program or the organizational level. But you have certain limits and there are things beyond your infleuence area so at times escalation is the only possibility left. Once you escalate the risk, the ownership is no more with the project team, but make sure that the other person accepts it and owns it Avoid: Avoid means lets remove the root cause of this risk. For example, you are planning to go to a movie but you are sure that you will not get parking, so you drop the idea of going there. Avoid means either we make the impact zero or minimize its probability of occurrence. Transfer: Transfer risk means shifting the ownership to a third party to manage the risk and to bear its impact in case of any unforeseen event. For example, you buy a health mediclaim policy so that when you get hospitalized they bear your complete bill. You keep paying a premium for the same. But this type of strategy does not minimize the risk occurrence by 100%. Mitigate: In a project, almost 80 to 90% of risks get mitigated. Mitigation may involve prototype development to reduce the risk or planning some proactive actions to minimize the impact of risk. Mitigation is either attacking impact part or occurrence part or both. Most of the time this strategy is used in the projects. Accept: These are a set of risks with which you have to live with it. You would look into them when it comes. These are of 2 types Active and Passive. Passive Acceptance is you are literally not doing anything about it. Keeping a buffer of 15 days in your project means there is a contingency reserve or a fallback plan. This is active acceptance. These response strategies are not fixed and can be changed if required. From the exam perspective, first, try to recognize the risk strategy in the question, analyze and decide which strategy will best fit in achieving the overall project objective. For more similar videos, you can explore our complete online PMP® certification course here: https://www.izenbridge.com/pmp/online... The Project Management Professional (PMP) is a registered mark of the Project Management Institute, Inc. PMBOK is a registered mark of the Project Management Institute, Inc. Materials in this video are based on the text , A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management Institute Inc., 2017. The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc. #pmpvideo #pmptraining #pmptutorial #pmp