I find the various risk response strategies like 'Enhance', 'Exploit', and 'Share' for opportunities a bit confusing compared to threats. Could someone provide a clear breakdown of how to apply these effectively for the PMI-RMP exam questions and real-life project risk management?
3 answers
For the PMI-RMP, you must distinguish between negative risks (threats) and positive risks (opportunities). For threats, you have Avoid, Transfer, Mitigate, and Accept. For opportunities, the parallels are Exploit (ensure it happens), Share (partner with a third party), and Enhance (increase probability/impact). The key for the exam is identifying the intent. If you are changing the project plan to eliminate the risk, you are 'Avoiding' or 'Exploiting'. If you are just reducing the impact, you are 'Mitigating' or 'Enhancing'. Memorizing these nuances is essential for the situational questions.
When we talk about 'Sharing' an opportunity, does that always involve a legal contract similar to how 'Transferring' a threat usually involves insurance or a performance bond?
Always remember that 'Acceptance' is a valid strategy for both! Sometimes the cost of the response outweighs the benefit of the risk management action itself.
Very true, Linda. Passive acceptance is just a watch list, while active acceptance involves setting aside a contingency reserve for when the risk occurs.
Generally, yes, Robert. Sharing often involves forming a joint venture or a partnership where both parties benefit from the upside. Much like Transferring moves the pain to someone else for a fee, Sharing moves some of the gain to someone else to ensure the opportunity is actually captured. It's about leveraging external expertise that your internal team might lack.