Project Management- Chapter 5 ideas

I read Chapter 5, and I had some ideas to share. There are basically five categories of classic risk response strategies: accepting, avoiding, contigency plans, transferring and mitigating the risk.

1. accepting risk, it means you understand the risk, its consequences and probability, and you choose to do nothing about it. If the risk occurs, the project team will react.

2. avoid the risk. we can always avoid the risk by choosing not to do part of the project or by choosing a lower-risk option for meeting project objectives. This deletion of part of the project culd affect more than the project-the busienss risk could also be affected.

3.contingency plans. Monitor a risk by choosing some predictive indicatior to watch as the project nears the risk point. Contingency plans are alternative courses of action prepared before the risk even occurs. It is second plan, and it can be looked on as a kind of insurance and , like insurance policeis, then can be very expensive.

4. transfer the risk. even though paying for insurance may be expensive, assuming all the risks yourself could cost a great deal more. More large projects purchase insurance for a variety of risks, ranging from theft to fire. Effectively transferred risk to the insurance company is used by a lot of cases.

5.mitigate the risk. it is jargon for work hard at reducing the risk. it covers nearly all the actions the project team can take to overcome risks from the project enviroment.