Negative and Positive Risk Response Plans
The risk is usually unexpected action or matter that can occur in an organization. We have positive and negative risks, and both of the risks affect the results of a project. Negative risks are usually threats to a project while real risks are opportunities. The response plans for negative risks include avoidance. This is where a risk is eliminated so that the project can be complete. An example is where we have a delay in the treatment of patients, and to solve this, more employees are added to the team.
The transfer is another response to negative risk where the risk is given as a responsibility to a third party. An example is where contracting companies who work under the unfavorable weather most of the time transfer the risk of losing their goods to the insurance company s that they can ensure their products and avoid any loss.
Mitigation is another response to negative risks. This is where one can reduce the possibility of any risk occurring. An example is where one keeps checking the performance of a machine to ensure there is a continual functionality of the machine.
Acceptance is another response to negative risks which occur where no action is taken towards the risk. An example is when one identifies a faulty pipe in the industry, and nothing is done towards adjusting it. This indicates that the person has already accepted the risk.
Positive risk responses plans include exploiting the opportunity. An example is where team members can have knowledge on how to ensure desired outcomes in a project and they train others to get the skills. Another response plan is sharing the opportunity. An example is where one can be skilled in a particular field but have a project that requires the skills. If the person is not available for the project, transferring the responsibility will protect the project from failing.
Enhancing is the other plan to positive risks. This is where possibility of a project is enhanced by maybe allocation of more resources which will make it more successful hence a positive risk
Acceptance is the last plan for positive risk. An example is where the risk mitigation processes cost $2000 while the risk itself could cost $100. Accepting the risk makes it positive as it will save on cost