Types of response

  • Appropriate Risk Response 

    Risk responses should always be appropriate to the risk.  For example,

    An insurance policy against loss or damaging to any watches or jewellery that you wear successfully removes the risk of financial loss for repair or replacement.  Whether it is an appropriate response to that risk will depend on:

    • The likelihood of loss or damage – how clumsy or forgetful you are, how often you wear your jewellery etc.
    • The impact of the loss – the value of the jewellery worn and your ability to replace it
    • However it will also depend on the relationship between the value of the watches or jewellery and the size of the insurance premiums. A £10 premium for a £100 item is not perhaps an appropriate risk response, a £10 premium for a valuable collectors piece might be.

  • Types of Risk Response

    There are a number of different types of Risk Response that we can take.   The list below may be a useful prompt in thinking about the alternatives to consider before making recommendations to the Project Board on the appropriate response to possible threats.

  • Counter measures taken now to prevent the risk occurring or having impact on the project. This may include avoidance by doing things differently to avoid the risk occurring or having impact on the project
    Actions taken now to reduce either the impact or likelihood of the risk occurring
    Plan of action and associated resources to be kept in readiness & deployed should the risk transpire
    Management by transfer of all or part of the impact to a 3rd party e.g. via insurance or a penalty clause. This will have a financial cost and is an option for some types of risk only.
    A conscious decision to do nothing but unlike 3, with no contingency arrangements.  This may be appropriate where the costs of mitigation are unreasonably high or the impact and likelihood are at acceptable levels. Close monitoring of the risk must be maintained where this is the decision
  • Types of Opportunity Response

    Your Project or Programme Board may also ask you to assess whether any of the uncertainties around the project present opportunities, what action is needed to realise them and whether it is worth trying to do so.  In this situation consider the options below when recommending the appropriate response to these opportunities. 

  • Actions to be taken to realise the opportunity
    Take action to increase the likelihood or impact of the opportunity
    Ignore opportunity e.g. if benefits not worth it when balanced against cost of action to exploit or likelihood too low even if enhancement action taken.
    Gain may be shared with a 3rd party as an incentive