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Risk and Risk response questions in PMP and RMP

Here is another question posted by one of the participant:



Hi Kavita... one more query...regarding Risk Response Plan.
If I find a risk of missing deadline...and to avoid that I work extra time or hire few temp contractors to complete the work within deadline. So is this case of AVOID risk or ACCEPT risk? I did avoided the risk by adding more time/resources. However I also accepted that risk will occur and hence hired more people.
From what I understand is ACCEPT is you don't take any action and wait for the risk to happen and use contingency plan. So in that case I accepted risk and my contingency plan was to hire more people.
But at the same time AVOID risk says, take action and eliminate risk. So I eliminated risk by hiring people.
just too much confusion :)

So what is the answer to above question?

This is what I posted back..

A risk has some probability and some impact - I'm sure you know that..
Now lets understand the risk responses in detail:
Accept - Do Nothing
Avoid - Select some other alternate path so that risk probability becomes ZERO.
Mitigate - Try and bring the probability and/or impact down to minimum acceptable range
Transfer - changing the ownership of risk. The risk probability and impact remain same.
Now in your scenario - just think again by given definition and respond as which response strategy did you select..

So what do you think of the Answer now?

Here is another piece of the puzzle (My answer - 2nd reply):
In your scenario - adding resources to be on time due to risk of delay, you used MITIGATE as the risk response.
You reduced the probability of delay be some percentage by adding resources but the probability is still not reduced to Zero (so avoid is out). Transfer is out since you did not outsource.
Accept is do nothing. You did something (so accept is also not the valid choice)
The only good choice to select here is Mitigate.
Hope this answers your confusion..

The Response :)

yeah.. much better. I thought I was eliminating risk and thinking of AVOID. But actually I was only reducing the probability/impact by adding more guys in the team and was trying to reduce the risk.
wish there was 'bring a friend' during PMP exams :)
Thanks again for prompt reply.

Join in the discussion at :
 https://www.udemy.com/pmp-in-21-days-practice-tests/?couponCode=PMP10

See you in the course..






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