5 strategies to mitigate risks
Risk mitigation is to identify, estimate and evaluate project risks, consider the probability of project risks, the severity of losses and other factors, and take corresponding measures according to the different risks of different projects. Today, the project management software customer service will introduce 5 major strategies to mitigate risks, and friends who are interested will take a look ~
1 Transfer risk strategy
Refers to the transfer of risk to other people or other organizations, the purpose of which is to borrow a contract or agreement to transfer part of the loss to a person or organization capable of bearing or controlling project risks once a risk incident occurs. The specific implementation can be expressed as financial risk transfer (for example, banks, insurance companies or other non-bank financial institutions are indirectly responsible for project risks). Non-financial risk transfer (transferring the project-related property or project to a third party, or contractually transferring risk to other people or organizations, while also retaining the property or project that will generate risk).
2 Risk aversion strategies
It is a strategy to actively abandon the project or change the project objectives and action plan when the potential risk of project risk is too high, the adverse consequences are too serious, and no other strategies are available. For example, an enterprise is currently facing an investment project with less mature technology. If it is found that the implementation of the project will face a huge threat through risk assessment, the project management organization has no other available measures to control the risk, and even the insurance company believes that the risk is too large. Refuse coverage. At this time, we should consider giving up the implementation of the project to avoid huge risk accidents and property damage.
3 Risk mitigation strategies
The risk mitigation strategy is to mitigate the risk through mitigation or prediction, etc., to reduce the possibility of risk occurrence or to mitigate the adverse consequences of risk, so as to achieve the purpose of risk reduction. This is a positive approach to risk management.
4 Accept risk strategy
Accepting a risk strategy is also one of the strategies to actively resolve the risk. It refers to the strategy by which the project team consciously chooses to bear the consequences of risk. When the cost of adopting other risk aversion methods exceeds the losses caused by the risk event, the method of accepting risks can be adopted. Accepting risks can be active, that is, some risks have been prepared during the risk planning stage, so the emergency plan is executed immediately when a risk event occurs; passive acceptance of risks refers to the existence of risks by the project management team due to subjective or objective reasons And the lack of awareness of the seriousness, did not deal with the risk, and ultimately the project management organization personnel bear the risk loss. When implementing a project, try to avoid passive acceptance of risks. Only by making preparations at the risk planning stage can you actively accept risks.
5 Reserve risk strategy
Reserve risk strategy refers to formulating emergency measures in advance and formulating a scientific and efficient project risk plan in accordance with the law of project risks. Once the actual progress of the project is different from the plan, backup emergency measures are used. Project risk emergency measures mainly include cost, schedule and technology. Species. The budget contingency is a fund prepared in advance to compensate for the impact of errors, omissions, and other uncertainties on the accuracy of project cost estimates. Budget contingency expenses should be listed separately in the project budget, and should not be dispersed under specific cost items, otherwise, the project management organization will lose control over expenditures.
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