Accept: When you can’t avoid, mitigate, or transfer a risk, then you have to accept it.The most common way to do this is to buy insurance. Transfer: One effective way to deal with a risk is to pay someone else to accept it for you.This means taking some sort of action that will cause it to do as little damage to your project as possible. Mitigate: If you can’t avoid the risk, you can mitigate it.The easiest way to avoid this risk is to walk away from the cliff, but that may not be an option on this project. If you can prevent it from happening, it definitely won’t hurt your project. Avoid: The best thing you can do with a risk is avoid it.There are four basic ways to handle a risk. But eventually, some of the risks that you plan for do happen, and that’s when you have to deal with them. When you’re planning your project, risks are still uncertain: they haven’t happened yet. If it’s very windy out or if the ground is slippery and uneven, then falling is more likely (Figure 16.1). If your project requires that you stand on the edge of a cliff, then there’s a risk that you could fall. Either way, it’s something that may or may not happen …but if it does, then it will force you to change the way you and your team work on the project. A risk can be an event (like a snowstorm) or it can be a condition (like an important part being unavailable). Anything that might occur to change the outcome of a project activity, we call that a risk.
Even the simplest activity can turn into unexpected problems. When this happens, we call it an opportunity but it’s still handled just like a risk. Some events (like finding an easier way to do an activity) or conditions (like lower prices for certain materials) can help your project. So does that mean that you’re helpless against unknown problems? No! You can use risk planning to identify potential problems that could cause trouble for your project, analyze how likely they are to occur, take action to prevent the risks you can avoid, and minimize the ones that you can’t.Ī risk is any uncertain event or condition that might affect your project. Team members get sick or quit, resources that you were depending on turn out to be unavailable, even the weather can throw you for a loop (e.g., a snowstorm). No matter how well you plan, your project can always encounter unexpected problems. Even the most carefully planned project can run into trouble.
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