Risk Response generally includes:
- Avoidance…eliminating a specific threat, usually by eliminating the cause.
- Mitigation…reducing the expected monetary value of a risk event by reducing the probability of occurrence.
- Acceptance…accepting the consequences of the risk. This is often accomplished by developing a contingency plan to execute should the risk event occur.
In developing Contingency Plans, the Project Team engages in a problem solving process. The end result will be a plan that can be put in place on a moment’s notice.
What a Project Team would want to achieve is an ability to deal with blockages and barriers to their successful completion of the project on time and/or on budget. Contingency plans will help to ensure that they can quickly deal with most problems as they arise. Once developed, they can just pull out the contingency plan and put it into place.