Risk response strategies - avoid

Submitted by al.zo on Tue, 04/16/2013 - 01:12

 Hi,

During the plan risk responses process, the team is discussing ways to deal with a risk. They have come up with the following options:

a) outsource the work

b) providing more training to the team member

c) wait to see if the risk actually happens

d) ignore the risk

e) do the risk activity sooner in the project

Which of the following is a risk response strategy that was forgotten in the above situation?

1) removing the activiyt causing the risk from the project

2) purchase insurance to cover the anticipated cost

3) assign the acitvity to a more experience person to handle

4) prototype the product

From RITA Answer given is 1, saying it is the only option including avoidance.

But option e) (do the risk activitity sooner in the project) is not avoid also? According to the PMBOK 4th pag

 303 (risk avoidance involves changing the project management plan to eliminate the threat entirely... example of this include extending the schedule...changing the strategy...)

 

Thanks

 

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admin

Tue, 04/16/2013 - 10:57

I think you are confusing between mitigating and avoiding.

If you assign a more experienced person, you are still taking the risk head on and mitigating the probablity of risk occuring. If you completely remove the activity from the PM plan then you are avoiding the risk.

Its like you have two bridges over river, one is about to break and one cannot take your weight. If you chose any of those bridges you are still taking the risk. but if you decide not to cross the river you are avoiding the risk.

al.zo

Tue, 04/16/2013 - 12:50

 Thanks for answer.

But I am talking about the following:

do the risk activity sooner in the project

I still do not get why this is not avoiding because it involves changing project management plan

Hemant Tandon

Wed, 04/17/2013 - 03:09

I think, we should not see Rita’s comments in literal terms:-

  • It is not just ‘Avoid’ which leads to changes in Project Management Plan, but also all the different risk response strategies lead to changes in the project management plan.
  • ‘Project Management Plan Updates’ is an output of ‘Risk Response Plan’ process. So, any of the risk/opportunity response strategy can lead to updates in project management plan.
  • Read PMBOK4 page#337 and 338 thoroughly, and your doubt will be clear.

Thanks & Regards,

Hemant Tandon, PMP 

al.zo

Wed, 04/17/2013 - 10:45

 Hi Hemant Tandon,

thanks. So what kind of risk response is  do the risk activity sooner in the project ?

I agree that also other risk responses update the project management plan but PMBOK really says clearly

that avoid is used in case of  changing the strategy, changing the schedule, reducing scope...

Still I do not see how that can not be an avoid strategy (accordingly to PMBOK, not to Rita..)

Thanks

Hemant Tandon

Thu, 04/18/2013 - 01:34

  • I think 'do the risk activity sooner in the project' is more of mitigation.
  • MITIGATION, TRANSFER etc can also lead to Change in strategy, change in schedule, change in WBS etc.
  • Simple example of TRANSFER strategy: Being a Project Manager, you might decide to buy a component from external vendor. Now in this scenario, your schedule will have-to-have some activities related to procurement. So, your risk response strategy lead to updates in your schedule.
  • Avoid is the only strategy which leads to reduction in scope. Generally, AVOID leads to dropping-off of some items from the whole scope.

Thanks & Regards,

Hemant Tandon, PMP