{"id":4770,"date":"2022-01-26T14:23:04","date_gmt":"2022-01-26T19:23:04","guid":{"rendered":"https:\/\/projectmanagementacademy.net\/resources\/?p=4770"},"modified":"2022-12-01T19:48:46","modified_gmt":"2022-12-02T00:48:46","slug":"plan-risk-response-in-projects","status":"publish","type":"post","link":"https:\/\/projectmanagementacademy.net\/resources\/blog\/plan-risk-response-in-projects\/","title":{"rendered":"Plan Risk Responses for PMP\u00ae"},"content":{"rendered":"\n<p>There are many Project Management Professionals (PMP)\u00ae who use plan risk responses in the plan of their projects. Just as you learned from the Project Management Institute (PMI) standards, you use <a href=\"https:\/\/projectmanagementacademy.net\/resources\/risk-management-process-for-pmp\/\" target=\"_blank\" rel=\"noreferrer noopener\">Risk Management processes and tools<\/a> to increase the probability of a successful project outcome. Once identified risks have been captured in the Risk Register, you create risk responses. However, Risk Response strategies are referenced within the larger project management community in diverse ways depending on the industry and project. It is helpful to understand the purpose and intent of a \u201crisk response\u201d to improve your individual risk responses and better manage overall project risk.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p><strong>On this page:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"#what\">What is the Plan Risk Responses process?<\/a><\/li><li><a href=\"#importance\">Why a Plan Risk Response process is important?<\/a><\/li><li><a href=\"#inputs\">What inputs drive the Plan Risk Response process?<\/a><\/li><li><a href=\"#outputs\">What are the Plan Risk Response outputs?<\/a><\/li><li><a href=\"#develop\">How to develop a Risk Response<\/a><\/li><li><a href=\"#tools\">Tools and Techniques for Plan Risk Responses PMP<\/a><\/li><li><a href=\"#evaluating\">Evaluating Risk Response Options<\/a><\/li><li><a href=\"#best-practices\">Best Practices for the Plan Risk Response Process<\/a><\/li><li><a href=\"#when\">When to Implement Risk Responses PMP Plan<\/a><\/li><\/ul>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div class=\"wp-block-columns has-background is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\" style=\"background-color:#e9f7ff\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:40%\">\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"791\" height=\"1024\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/09\/01193044\/Ultimate-Guide-to-Risk-Management-791x1024.png\" alt=\"Ultimate Guide to Risk Management\" class=\"wp-image-7282\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/09\/01193044\/Ultimate-Guide-to-Risk-Management-791x1024.png 791w, https:\/\/e360-media.s3.amazonaws.com\/2022\/09\/01193044\/Ultimate-Guide-to-Risk-Management-232x300.png 232w, https:\/\/e360-media.s3.amazonaws.com\/2022\/09\/01193044\/Ultimate-Guide-to-Risk-Management-768x994.png 768w, https:\/\/e360-media.s3.amazonaws.com\/2022\/09\/01193044\/Ultimate-Guide-to-Risk-Management.png 850w\" sizes=\"auto, (max-width: 791px) 100vw, 791px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:50%\">\n<div style=\"height:48px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-medium-font-size\" id=\"block-eef25254-e22e-41f6-826b-cab064e3d095\"><strong>Get Your Comprehensive Guide to Risk Management<\/strong><\/p>\n\n\n\n<p id=\"block-14690051-2796-4b03-bcb7-95d54bd01fcd\"><em>Learn how to manage risk in every project.<\/em><\/p>\n\n\n\n\n\t\t\t\t\t<script>\n\t\t\t\t\t\thbspt.enqueueForm({\n\t\t\t\t\t\t\tportalId: 3294842,\n\t\t\t\t\t\t\tformId: \"05ade5e2-a78b-40d4-9daf-a391639b4340\",\n\t\t\t\t\t\t\ttarget: \"#hbspt-form-1778182067000-3595138857\",\n\t\t\t\t\t\t\tregion: \"na1\",\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t});\n\t\t\t\t\t<\/script>\n\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1778182067000-3595138857\"><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:10%\">\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what\">What is the Plan Risk Response process?<\/h2>\n\n\n\n<p>The project management strategy documenting what the team\u2019s response should be in the case of the identified positive and negative risks occurring can be informally called any of the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Plan Risk Responses PMP<\/li><li>Plan Risk Strategies PMP<\/li><li>Risk Response Strategies PMP<\/li><li>Risk Responses PMP<\/li><li>Risk Strategies PMP<\/li><\/ul>\n\n\n\n<p>The most common terms, \u201cplan risk response\u201d and \u201cplan risk strategy,\u201d are used interchangeably within Project Management circles. In PMI\u2019s <em>A Guide to the Project Management Body of Knowledge<\/em> (<em>PMBOK<\/em>\u00ae<em> Guide<\/em>) &#8211; Sixth Edition, the actual process name is \u201cPlan Risk Responses.\u201d The Project Manager and project team decide the appropriate risk responses within this process. &nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"importance\">Why is a Plan Risk Response process important?<\/h2>\n\n\n\n<p>A sound risk response strategy is vital as it allows the project team to address risks by priority and ensures adequate resources and budget have been assigned. The risk response strategy should reflect the scope of the overall project and focus resources appropriately and within the project parameters.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"inputs\">What inputs drive the Plan Risk Response process?<\/h2>\n\n\n\n<p>Typical artifacts required of the Plan Risk Response process are the <a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/introduction-to-risk-management-plan\/\" target=\"_blank\" rel=\"noreferrer noopener\">risk management plan<\/a>, <a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/risk-register-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">risk register<\/a>, and <a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/the-risk-report-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">risk report<\/a>. Additionally, project managers should consult the lessons learned register, resource calendars, and stakeholder register.<\/p>\n\n\n\n<h3 class=\"has-normal-font-size wp-block-heading\"><strong>Risk Management Plan<\/strong><\/h3>\n\n\n\n<p>The risk management plan is the project document identifying how project risk activities will be structured and performed. It may include risk strategy and methodology, stakeholder risk appetite, risk categories, funding, and risk probability and impact definitions.<\/p>\n\n\n\n<p>Additionally, it may discuss reporting formats, tracking, and roles and responsibilities. &nbsp;<\/p>\n\n\n\n<h3 class=\"has-normal-font-size wp-block-heading\"><strong>Risk Register<\/strong><\/h3>\n\n\n\n<p>To create an effective risk response strategy, the project manager may refer to the <a href=\"https:\/\/projectmanagementacademy.net\/resources\/blog\/risk-register-in-project-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">risk register<\/a> &#8211; a document that captures all the details about individual project risks. It may include information such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Positive risks<\/strong>: impact assessed, probability of occurrence estimated, and assigned priority<\/li><li><strong>Negative risks:<\/strong> impact assessed, probability of occurrence estimated, and assigned priority<\/li><\/ul>\n\n\n\n<p>Note impact can be either positive or negative. A risk response strategy should be developed for all risks with a medium-high to high probability of occurrence and medium-high to high impact.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"outputs\">What are the Plan Risk Response outputs?<\/h2>\n\n\n\n<p>The risk response work generates new information to be included in the project documentation either as updates or as additional documentation outputs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"159\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/26134211\/Plan-Risk-Responses-e1643223236126.jpg\" alt=\"Plan Risk Responses PMP Inputs, Tools and Techniques, and Outputs\" class=\"wp-image-4790\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/26134211\/Plan-Risk-Responses-e1643223236126.jpg 600w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/26134211\/Plan-Risk-Responses-e1643223236126-300x80.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<h3 class=\"has-normal-font-size wp-block-heading\"><strong>Project Management Plan Updates<\/strong><\/h3>\n\n\n\n<p>Typical <a href=\"https:\/\/www.teamwork.com\/project-management-guide\/project-management-plan\/\" target=\"_blank\" rel=\"noreferrer noopener\">project management plan<\/a> components updated as part of the Plan Risk Response process are the schedule, cost, quality, resource, and procurement management plans and the cost, scope, and schedule baselines.<\/p>\n\n\n\n<h3 class=\"has-normal-font-size wp-block-heading\"><strong>Risk Register Updates<\/strong><\/h3>\n\n\n\n<p>Updates to the risk register as an output of the Plan Risk Responses PMP Process can include agreed-upon response strategies, trigger conditions, contingency plans, and budget\/schedule activities.<br><\/p>\n\n\n\n<h3 class=\"has-normal-font-size wp-block-heading\"><strong>Risk Report Updates<\/strong><\/h3>\n\n\n\n<p>The project team may update the risk report to reflect agreed-upon risk responses and expected changes that may occur when implementing planned responses. Additionally, the report may describe overall project risk exposure and high-priority risks.<\/p>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div class=\"wp-block-group is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"has-text-align-center has-medium-font-size\"><strong>Studying for the PMP Exam?<\/strong><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-1 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-100 is-style-fill\"><a class=\"wp-block-button__link has-white-color has-text-color has-background\" href=\"https:\/\/projectmanagementacademy.net\/free-pmp-questions?cat=risk-management\" style=\"border-radius:2px;background-color:#366194\" target=\"_blank\" rel=\"noreferrer noopener\">Risk Practice Questions<\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"develop\">How to develop a Risk Response<\/h2>\n\n\n\n<p>Not every risk requires a response plan. Project teams should focus their efforts on developing response strategies for those risks with a medium-high to high probability of occurrence and a medium-high to high impact. In general, the following should guide project teams in developing risk responses for those risks which merit them:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Identify trigger conditions and warning signs of a risk occurrence.<\/li><li>Document detailed actions to be implemented if a specific risk occurs.<\/li><li>Establish a contingency reserve to ensure adequate funding to address a realized risk.<\/li><li>Develop fallback plans, as appropriate, to be enacted if the primary risk response appears inadequate.<\/li><\/ul>\n\n\n\n<p>Remember risk response strategies differ for negative and positive risks..<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"tools\">Tools and Techniques for Plan Risk Responses PMP<\/h2>\n\n\n\n<p>The risk register will designate whether a particular risk is categorized as either positive or negative. With this information, the project team has a variety of risk strategies from which to choose.<\/p>\n\n\n\n<h3 class=\"has-normal-font-size wp-block-heading\"><strong>Strategies for positive risks<\/strong><\/h3>\n\n\n\n<p>Risks that can result in positive outcomes for a project (quality of the final deliverables, saved budget, saved time, etc.) are also called opportunities. These risks can be addressed in the following ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Escalate: <\/strong>implemented if the opportunity is outside the scope of the project team.<\/li><li><strong>Exploit: <\/strong>remove all barriers to help ensure the opportunity occurs.<\/li><li><strong>Share: <\/strong>transferring ownership to a third party.<\/li><li><strong>Enhance: <\/strong>taking action to increase the probability of occurrence or impact to improve the likelihood of an opportunity occurring.<\/li><li><strong>Accept: <\/strong>acknowledging the presence of the opportunity but taking no action.<\/li><\/ul>\n\n\n\n<h3 class=\"has-normal-font-size wp-block-heading\"><strong>Strategies for negative risks<\/strong><\/h3>\n\n\n\n<p>A threat that can reduce project value or decrease the chance of a positive outcome is considered a negative risk. Mitigation of negative risks is just one risk response strategy often included in PMP certification exam questions. Consider these strategies:<\/p>\n\n\n\n<p><strong>Escalate: <\/strong>implemented if the threat is outside the scope of the project team.<\/p>\n\n\n\n<p><strong>Avoid: <\/strong>when the project team takes action to eliminate the risk.<\/p>\n\n\n\n<p><strong>Transfer: <\/strong>shifting ownership of the risk via insurance, warranties, performance bonds, or the terms and conditions of a contract.<\/p>\n\n\n\n<p><strong>Mitigate: <\/strong>taking action to decrease the probability of occurrence or impact to reduce the likelihood of a threat occurring.<\/p>\n\n\n\n<p><strong>Accept: <\/strong>acknowledging the presence of the threat but taking no action.<\/p>\n\n\n\n<p>Negative risks commonly impact the budget and project outcomes. It is important to know the risk tolerance of the key stakeholders and communicate risk response actions and results throughout the project.<\/p>\n\n\n\n<h3 class=\"has-normal-font-size wp-block-heading\"><strong>Contingent Response Strategies for the Plan Risk Response Process<\/strong><\/h3>\n\n\n\n<p>Risk response strategies, for both opportunities and threats, can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>adjusting the project schedule (i.e., change the start date, change the target end-date)<\/li><li>revising requirements to add clarity<\/li><li>seeking expert judgement<\/li><li>modifying the project scope<\/li><li>changing resource allocations<\/li><\/ul>\n\n\n\n<p>Expert judgment can include technical expertise, project management know-how, or third-party consultation. The goal is to secure the advice of an expert in a specific field or situation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"evaluating\">Evaluating Risk Response Options<\/h2>\n\n\n\n<p>Anyone who has earned PMP certification or is preparing to take the PMP exam knows how important it is to have an effective means to guide decision-making processes. Evaluation criteria for deciding which risk response strategy to use for a given scenario includes but is not limited to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Achievability<\/li><li>Alignment to project scope<\/li><li>Fits within budget<\/li><li>Measurable<\/li><li>Realistic<\/li><li>Resources available<\/li><li>Sustainable<\/li><li>Validated or Tested<\/li><li>Time duration and\/or limitations<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"best-practices\">Best Practices for the Plan Risk Response Process<\/h2>\n\n\n\n<p>As part of evaluating risk response plans, keep these questions in mind:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Does the scale of the response align with the significance of the risk?<\/li><li>Does the cost of the response align with the risk\u2019s probability and impact?<\/li><li>Is the response effort realistic and possible within project parameters?<\/li><li>Is the approval of stakeholders secured?<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when\">When to Implement Risk Responses PMP Plan<\/h2>\n\n\n\n<p>Key to the success of any risk response process is understanding when to implement a risk response plan. Project managers and risk owners should be watchful for the presence of trigger conditions or signs that a risk event has occurred and be prepared to implement the response strategy immediately.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/26134915\/implement-risk-responses-1024x320.jpg\" alt=\"Ways to Implement the Plan Risk Responses PMP\" class=\"wp-image-4791\" width=\"641\" height=\"200\" srcset=\"https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/26134915\/implement-risk-responses-1024x320.jpg 1024w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/26134915\/implement-risk-responses-300x94.jpg 300w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/26134915\/implement-risk-responses-768x240.jpg 768w, https:\/\/e360-media.s3.amazonaws.com\/2022\/01\/26134915\/implement-risk-responses.jpg 1282w\" sizes=\"auto, (max-width: 641px) 100vw, 641px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Summary<\/h2>\n\n\n\n<p>Practicing project managers, as well as PMP candidates, should understand the Plan Risk Response process, inputs and outputs of the process, and potential strategies for both opportunities and threats. Additionally, project managers should know how to scale risk response measures to align with the severity of the risk.<\/p>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p style=\"font-size:25px\"><strong>Upcoming PMP Certification Training &#8211; Live &amp; Online Classes<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\"><table class=\"table table-striped table-bordered table-responsive-sm font-md mt-5 mb-0 d-none d-md-table\"><tr><td>Name<\/td><td>Date<\/td><td>Place<\/td><td><\/td><\/tr><\/table>\n<\/div><\/div>\n\n\n\n<p><\/p>\n<\/div><\/div>\n\n\n\n<div style=\"height:45px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>There are many Project Management Professionals (PMP)\u00ae who use plan risk responses in the plan of their projects. Just as you learned from the Project Management Institute (PMI) standards, you use Risk Management processes and tools to increase the probability of a successful project outcome. Once identified risks have been captured in the Risk Register, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5270,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[10],"tags":[49,48],"class_list":["post-4770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-risk-management","tag-plan-risk-response","tag-risk"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Plan Risk Response for Your Projects<\/title>\n<meta name=\"description\" content=\"Many certified project managers (PMP) plan risk responses in the plan of their projects. 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