How to choose your risk responses

This is a guest article by Harry Hall from projectriskcoach.com. Are you unsure where to begin with project risk management? This guide will help you get started with project risk management. You can always come back to this page later.

Risk Response Strategies for Threats
Risk Response Strategies for Opportunities
How to evaluate Risk Response Options1. Identify the selection criteria
2. Follow the criteria
3. Choose the best response

Your Turn

Project managers need to be proficient in risk management.
Harry HallYou have identified and assessed the risks associated with your project. Now you need to discuss your risk management plans with your risk managers.
A risk response is how you plan to respond to the risk.
Risk Response Strategies for Threats
There are many ways to respond to a risk. If the threat is (i.e. The following categories can be used to respond to a threat (i.e., something that is not welcome and will happen to the project):
Avoid
Transfer
Reduce
Accept.
You can prevent the risk from happening by doing something that makes it impossible for the risk to have any effect upon your work.
You can transfer all or part of the threat to a third person, often via insurance or a contract for risk-sharing with a supplier.
You can reduce the risk of an accident by taking steps that make it less likely.
Accept the risk and not take any active steps to mitigate it. However, the Praxis Framework suggests that you should create a contingency plan to be ready for whatever happens.
Risk Response Strategies for Opportunities
Let’s say that the risk is something you want to take. These are opportunities. There are four types of risk responses:
Exploit
Share
Enhance
Reject.
Exploiting risk is when you take advantage of a situation such as new technology to make the most of the project benefits.
You can share the opportunity to make it more likely, or to get more benefit from pooling your resources.
Increasing the risk means doing something that makes it more likely that the opportunity will occur. For example, you could take out advertising.
You can choose to reject the risk, i.e. You can do nothing. This is a possible response if you find it too difficult or too costly to take action to seize the opportunity.
How do you choose the best response from so many?
Complex events and conditions can make decision-making difficult. This is especially true when there are multiple people involved in the decision-making process. Stakeholders evaluate risks using their biases.
Although there are many risk responses, your risk response plan must include specific actions. There might be several actions you can take in order to reduce the risk. But are you going to do them all? Which one would you choose?
When deciding on risk responses, it is important to consider the following:
Cost of the responses
Impact on our project goals
It takes time and resources
Possible secondary risks

How can we do this? How can we make this decision quickly and effectively?
Let’s take a look at a way to improve your risk response selection during risk management.
How to evaluate Risk Response Options
These are three steps that will help you better determine which risk response option to choose.
1. Identify the selection criteria
First, determine your selection criteria (three to six criteria). Everyone should evaluate the same way. We are creating a filter for collective decision-making. These should be documented in your risk response plan. You can then use the same criteria throughout the project.
Next: Decision-making tools to groups
Each criterion must be defined. Higher weights are more important.