Factors to Consider When Planning Risk Response
Many factors influence the selection of a risk mitigation strategy, including:
- Project phase and application
- Size
- Priority
- Complexity
- Expense
- Time available
- Required level of detail
- Ease of use
- Resource availability
- Contract type
- Terms and conditions
- The project manager's authority, accountability, and ability
- Commitment from the project manager and upper management
- Customer satisfaction
Impact of Different Risk Options
Some project elements can be affected by different risk options. For example:
- The transfer of a risk affects the project scope or the contract. For example, a high-risk deliverable might be transferred to a subcontractor. The scope might then change because the requirement for research and design might be decreased by the transfer, or the scope of the deliverable might not change but the project length might. If the subcontractor specializes in the particular deliverable and its support, this transfer of risk might be acceptable to the sponsor as a response for the high technical risk.
- To use an insurance policy, the policy must be accounted for in the budget, as well as the person who will find, arrange, administer, or pay for the insurance.
- Risk might not change any of the project elements. In most cases, an accepted risk indicates that no more money or time will be allocated to the risk. The consequences are accepted. What if the risk occurs? Does anything change?