In my previous blog post, we have discussed negative risks response strategies, and now we are going to discuss the risk response strategies for positive risks or opportunities.
Risk response strategies for positive risks differ from the risk response strategies for negative risks because of the difference in nature of these two types of risks.
Negative risks have a negative impact on the project objectives, so strategies to deal with them are intended to lower the impact of the risk. On the other hand, positive risk have a positive impact on project objectives, so strategies to deal with them will focus on increasing the chances of them happening.
According to the PMBOK Guide fifth edition, the following strategies are used to manage positive risks:
In the above strategies, the accept risk response strategies can used to manage positive as well as negative risks.
Anyway, let’s discuss them in detail.
In enhance risk response strategy you try to increase the chance of a risk happening so you can realize the benefit of this positive risk.
For example, let’s say that your project will complete in three months, however, if you manage to complete your project in one and half months, you can bid for a new project. This is an opportunity for you.
Therefore, you try to compress the schedule with fast tracking so that the project can be completed ahead of time and you can get a chance to bid for a new project.
In the above example, you are using the enhance risk response strategy because here you are only trying to realize the opportunity.
You can say that this strategy is the opposite of the mitigation risk response strategy.
In exploit risk response strategy, you ensure that the opportunity is realized. Here you do not try to realize the opportunity; you work hard to ensure that this opportunity does not go unrealized.
For example, let’s consider the example given above again.
You have an opportunity that if you complete the project ahead of time, you will get a chance to bid for your next project.
Now you have to ensure that you realize this opportunity. Therefore, you apply fast tracking, crashing and any other technique which can help you complete the project earlier. You take every possible measure to ensure that the project is completed ahead of time and you can bid for the new project.
Exploit is the opposite of avoid risk response strategy.
In accept risk response strategy you don’t take any action to realize the opportunity. You leave this opportunity as is. If it happens you will realize it, otherwise you will not take any action.
Suppose there is a chance that you may get some skilled workers from another project at lower rate if you convince them to join you. However, you did not pursue this matter and let them decide whether they are interested in your project or not.
You will usually go for share risk response strategy when you are not capable of realizing this opportunity on your own. So, in this case you may team up with another company and work together to realize the opportunity.
For example, suppose due to lack of a certain technical capability you are not able to bid for a contract, and you want to realize this opportunity. Therefore, you will team up with some other company that is capable of doing this task and apply for the contract.
You can use any of these four strategies to manage positive risks. The strategy will be selected based on the situation and type of risk. If the opportunity is not very important or you are not very interested in it, you will go for either enhance or accept risk response strategy. If the strategy is too important to miss, you will go for the exploit risk response strategy. However, if you want to realize the opportunity and you are not able to do so on your own, you will go for share risk response strategy.
So, this was all about positive risk response strategies.
Please note that this topic is very important from a PMP and PMI-RMP exam point of view. You are going to see many questions on this topic in your exam. Therefore, understand these concepts well before attempting the exam.
Here is where this blog post on positive risk response strategies ends. If you have something to share, you can do so through the comments section.