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Project Management Orientation

Risk Response Options 

Starting with the prioritized list of risk events, you must select the best risk response option.  Following is a list of the options you might use for the identified risks:    

Transfer risk.  Determine if the accountability, responsibility, and authority for the risk belongs to the project or to another organization.  Transfer implies ultimate accountability, responsibility, and the authority to expend required resources to mitigate the risk that exists outside of the delivery organization.  Transfer requires the acceptance of risk by the other party.  In risk transfers the risk is not removed from the project, it should still be tracked as a project risk.

Options for transfer include transferring the risk to a sponsor or supplier through terms in an agreement, to an IBM organization in a business unit not connected with the project through formal written documentation, or to an IBM organization in the same business unit as the delivery team through informal written documentation.

For risks not transferred, determine who will own them within the project.

Insurance. When you have coverage, use it to cover the cost of the risk event.

Contingency.  In this type of response, you make the decision to use monies set aside for risk management reserve or risk contingency reserve.  Using management reserves is an alternative to increasing the price of the project to the sponsoring organization.  Generally, establishing and using management reserves is controlled by the delivery organization policy. 

Contingency is a reserve held outside of the project cost baseline for future situations affecting project cost or schedule.  It is not held for specific risks but at an aggregate level.  The risk contingency reserve is held inside of the project cost baseline and used to address future situations affecting project cost or schedule.


Mitigate
.  In risk mitigation, you take steps to lessen risk by lowering the probability of a risk occurrence or by reducing its effect on the project.  In risk contingency planning, you develop a plan for defining actions to be taken if the risk occurs.

 

1: Getting Started
2: Define the Project Team
3: Team Management
4: Identify and Validate Requirements
5: Create Decomposition Structures
6: Risk Management
7: Project Estimates
8: Project Schedules
9: Change Management
10: Project Control and Execution
Defining the Project
11: Project Management Review
12: Project Closeout
13: Project Management Tool Suite
14: Self-Assessment and Final Exam
Fast Points
Concepts
Seven Keys
Case Study
WWPMM
Mentor
Check Point
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