Risk acceptance and COntingency reserve Question

Submitted by Avi_n on Wed, 01/23/2013 - 08:03

Dear all,

what is the response stratergy for Residual risks? Is it handled using contingency reserve as a mode of risk mitigating or risk acceptance?

How do we use AVOID for Risk? Can you explain with example so i can understand better?

Thank you.

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aval

Wed, 01/23/2013 - 09:24

Residual risks are the risks you are ready to accept so you don't plan any response for it.  You just use your contingency reserve if they occure.


You can avoid the risk by eliminating the reson behind it so that risk itself is eliminated.  For e.g. if you find your vendor to be risky based on your past project experience, you chagne the vendor and avoid this particular risk.