How to Create Risk Response Strategy?

We often encounter uncertainties that have the potential to affect the course of our interests. Sometimes we take conscious action, and sometimes we struggle with what comes up when uncertainty pays off. Sometimes this struggle is very tough, sometimes we feel defeated. It is impossible for these uncertainties not to exist, for everything to stand before us as clear as glass. The situation is no different for projects.

Since it is not possible for us to see exactly what is ahead, then the best thing to do is to educate ourselves according to the worst-case scenarios that can happen and to wait ready for what is to come.

Our job will of course be easier if we have a plan to minimize harmful risks and to optimize the effectiveness of the action we will take against these risks.

Developing a risk response strategy is a must for risk management. With the identified risks, they contribute to addressing these risks before they turn into real annoying problems and their impact to a level that does not hurt.

There are different options we can apply to handle risks.

  • Avoidance: This involves eliminating the risk entirely by not taking the action that would cause it.
  • Mitigation: This involves reducing the likelihood or impact of a risk by taking action to address it.
  • Transfer: This involves shifting the risk to a third party, such as through insurance or outsourcing.
  • Acceptance: This involves accepting the risk and its potential consequences and having a plan in place to address it if it occurs.

See also: Risk owner

Risk Reports