Difference between exploit and enhance risk responses

Submitted by nirupamasai on Mon, 09/13/2010 - 08:28

Hi,


 


I want to know the difference between exploit and enhance risk response strategy. I feel the difference is very small. Anyone could eloborate me with a example. Thanks in advance

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pmpodcast

Mon, 09/13/2010 - 15:03

 Hi,

 

The difference between “Exploiting” and “Enhancing” a risk is very subtle. The only difference is the aggressiveness of the approach we take to make the risk happen.

 

Exploiting means to take “whatever measures” it takes to make sure that the risk or the uncertain event “does happen”. For example consider you are managing a project and you are required to complete the project in six months. According to the contract, if you finish the project within four months, you will earn double of the project fee. If you want to exploit this, you might take out resources from other on-going projects and assign them to this project, you might announce a big incentive to team if they make this happen, you might hire an expert consultant, and you may ask your resources to work over time etc. The point here is you are very aggressively dealing with the risk and making sure that it happens.

 

Enhancing means to take “reasonably good” measures to make the risk “more probable” to happen. Consider the same previous example; if you do not want to exploit the risk because of the high costs involved, you should take a less aggressive approach to make the risk at least more probable to happen. For example if I take resources out of other projects that might make those “other” projects suffer and I don’t want that. What if I don’t want to overload my resources by making them work overtime? What if I don’t have the budget to hire an expert consultant? I might only announce a reasonably good incentive to the project team so that they get motivated to complete the project in four months. You can see that this approach will make the risk more probable to happen rather than doing nothing at all. However, the earlier approach was more aggressive and would have made risk “further more probable” to occur if not “making it sure”.

 

I hope that answers your question.

 

Exam Support Team

The PM PrepCast - http://www.premiumcast.com/vp/50398/16780/10399/

 

happyinlove505

Fri, 01/25/2013 - 11:19

 Hello friends,

I am very concerned about the subtle difference between exploit and enhance.

I really liked the statement from the similar thread: 

Exploiting means making sure that event happens

Enhancing means increasing probability or impact of the event.

 

However, I found the following exercises which I tried but not do not agree with the correct answer given in the book

 

1. Move a work package to a date when a more experience resources is available to be assigned to the project 

I chose Enhance the Impact. Correct answer: Exploit

2. Begin negotiation for the equipment earlier than planned so as to secure a lower prices.

I chose Exploit. Correct answer: enhance the impact.

 

Do you agree with the correct answers?

 

Thank you for your comments :)

sspawar

Sat, 01/26/2013 - 09:59

Example:


A fisherman throws a fishing-net to catch fishes in a fishery pond and simply gets a good amount of fishes.


Whereas the other fisherman spreads the net with Fishing bait in night and collects it in the morning and gets the double amount of fishes than the first one.
 


The first fisherman exploits the opportunity.
 


Second fisherman enhances the opportunity.