Last week we learned about the Risk Management: controlling risk. The chapter talked about different risk handling procedures, feasibility analysis and recommended risk control practices. When we talk about Risk Management, it is important to talk about Risk Mitigation.
In simple terms, Risk mitigation is taking steps to reduce any adverse effects. It is a process by which organization introduce specific measures to minimize or eliminate unacceptable risks associated with its operations. There is no doubt that we are surrounded by different kinds of risk. To understand those risks and implementing the appropriate strategies to mitigate and manage risk, it is important we learn about Risk mitigation.
There are different ways to mitigate the risk. Some of the risk mitigation handling options are:
Ø Assume/Accept: Project manager acknowledge the existence risk and make a decision to accept it without changing any project plan other than just agreeing to address the risk if it occurs.
Ø Avoid: The team adjusts the project requirements to eliminate or reduce the risk. The adjustment could be done by changing the funding, schedule or any other technical requirements.
Ø Control: Implementing actions to minimize the impact or likelihood of the risk.
Ø Transfer: Changing or reassigning the organizational accountability, responsibility and authority to another stakeholders or project teams that are willing to accept the risk.
Ø Monitor: Monitor the environment for changes that affect the nature or impact of the risk.
Overall, Risk mitigation is all about understanding those risks that can impact the objectives of the organization and taking appropriate steps to reduce or eliminate the risks.
Reference:
Anonymous (Feb, 2011). Risk Management: Understanding Risk Mitigation. Retrieved from URL: http://www.ica.bc.ca/ii/ii.
Anonymous (N.d.). Risk Mitigation Planning, Implementation, and Progress Monitoring. Retrieved from URL: http://www.mitre.org/
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