Risk strategies

Submitted by skdroy on Wed, 05/19/2010 - 11:32

Hi Everyone,

I am giving PMP exam in another two weeks. Request if anyone can make me understand the difference

between Risk mitigation and Risk acceptance.

Where can we apply contingency plan, either in case of Risk mitigation or in case of Risk Acceptance.

According to JIMBOK contingency plan will be applied in case of Negative risks (passive acceptance). Any example to differentiate between risk mitigation and risk acceptance techniques.

 Thanks,

 Srikrishna

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admin

Thu, 05/20/2010 - 03:47

Refer to page 304 of PMBoK it will answer your doubts.


Suppose there is a risk that schedule crunch will impact the quality and you discuss with the customer and get schedule extended, you have mitigated the risk. If you don't do anything about it and simply wait for the quality issues to happen you have accepted the risk passively. If you put some contingency reserve (money aside) to deal with quality issues when they happen you have actively accepted the risk.


Regards,
Admin.