Question

Rounding out the big three – having identified our risks and having assessed them, we need to think about “what are we going to do about it!” People, we talked about adjustments to budget, schedule, scope as risk resolutions. We also discussed avoiding, transferring, mitigating, and accepting – as approaches to risk resolution. Which of those makes the most sense to you? Why?

Answer 1

Answer: I feel that mitigation is the best approach that can be taken for the management of risks. The risks are inherent to the projects and they cannot be effective avoided, transferred or fully accepted. Risk mitigation involves reduction of risks which is a more practical approach as compared to the other strategies. Every risk can be mitigated and this helps in reducing the impacts of the risks. This can be effectively applied on all types of risks even the ones that can be transferred or cannot be avoided. The major advantage of this strategy is that it enables a business to take care of all possible threats and risks that it may face. The other strategies cannot be universally applied and can help the organization to take care of only certain types of risks. The risk mitigation not only deals with the aftermath of the risks but it also the activities that can be carried out before the risk may occur.