Strategies for negative risks ( threats )

Negative risks or threats are unfavorable conditions, situations, circumstances or risks that can have potential negative impact on project objectives if they materialize. One or more of the  strategies described here are employed to counter the effect of threats.

Risk Avoidance

Risk avoidance is a risk response technique used primarily for threats that involves making changes to the project management plan to either eliminate the risk or protect the negative impact of the risk on project objectives.

Risk Transference

Risk transference is a risk response technique used primarily for threats that involves transferring risk impact to a third party along with the ownership of risk responses.

Risk Acceptance

Risk acceptance is a risk response technique employed when the risk cannot be avoided/mitigated or the project team decides to accept the risk and its consequences. There are primarily two types of risk acceptance strategies – Passive Acceptance and Active Acceptance.

Passive Acceptance

Passive acceptance is a risk response technique employed when the risk cannot be avoided/mitigated in any way and the project team must accept the consequences of the risk when it materializes without an adequate response strategy.

Active Acceptance

Active acceptance is a risk response technique employed when the risk cannot be avoided/mitigated in any way and the project team must accept the consequences of the risk by developing contingency plans or reserve to put in action when the risk materializes.

Risk Mitigation

Risk mitigation is a risk response technique used primarily for threats that involves identifying risk responses that could reduce the probability of risk event and/or lower the impact to an acceptable level.

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