Positive Risk Strategies

Corrective action in Positive Risk Strategy:

• Risk Exploitation
  - Used when a project team wants to make sure that a positive risk is fully realized
  - Done by hiring the best experts in a field or ensuring the most technologically advanced resources are available to the project team.
  
  
• Risk Sharing
  - Entails partnering up with another party in an effort to give your team the best chance of seizing the opportunity.
  - Joint ventures are a common example of risk sharing.
  
  
• Risk Enhancement
  - increase the probability that an opportunity will occur.
  - Done by focusing on the trigger conditions of the opportunity and trying to optimise their chances of occurrence.

Negative Risk Strategies

Preventive Action in Negative Risk Strategies include:

• Risk avoidance
  Attempts to eliminate the risk altogether.
  
  
• Risk Transference
  Passes the liability of a risk to another party.
  
  
• Risk Mitigation
  Reduces the probability and/or impact of the occurences of a risk event.

Introducing Risk Response Planning

Risk Response Planning is:

• the process of examing each risk and corresponding resonse alteratives
• determining which response will improve the likelihood of a positive outcome.

Perform Quantitative Risk Analysis: Output (in terms on PMP)

Risk Register Updates:

• Prioritized list of quantified risks
  What are the risks that most likely to cause trouble? That needs the most contingency?
  
  
• Amount of contingency and cost reserves needed.
  
  
• Possible realistic and achievable completion date and project costs with confidence level versus the cost oand time objective for the project.
  
  
• The quantified probability of meeting project objectives.
  
  
• Trends in quantified risk analysis.

Decision Tree Analysis

Decision Tree Analysis

• is an assessment of the data obtained using the decision tree method to evalute various possible outcomes.
  
• allows decision-makers to factor in both probability and impact for each branch of every decision under consideration.
  
• indicates the decision that will provide the greatest expected value when all the uncertain implications, costs, rewards and subsequent decisions are quantified.