The document discusses various strategies for responding to negative risks or threats in projects. It defines negative risks as conditions, situations or circumstances that can have a potential negative impact on project objectives. The main strategies discussed are risk avoidance, risk transference, risk mitigation, and risk acceptance.
Risk avoidance aims to eliminate threats entirely by countering vulnerabilities or removing assets from harm. Risk transference involves shifting the impact of a threat to a third party through insurance, contracts, or other agreements. Risk mitigation seeks to reduce the probability or impact of risks through contingency planning or other means. Finally, risk acceptance acknowledges risks and decides whether to passively accept consequences or actively develop contingency plans.
Presenting this set of slides with name - Risk Management Overview Powerpoint Presentation Slides. The process constituents are Introduction To Risk Management, Risk Management Overview, Risk Management Outline. Edit, convert and utilise the deck at will. https://bit.ly/37069Fp
Enterprise Risk Management provides decision makers with a
realistic picture of likely
outcomes to their strategic initiatives by integrating risk into the cost benefit analysis of
all strategic investments.
The slideshare identifies the six steps to moving beyond cybersecurity to cyber resilience. Ensuring federal agencies maintain continuous operations while under persistent threat. Learn more: https://accntu.re/2Q2cdDj
Presenting this set of slides with name - Risk Management Overview Powerpoint Presentation Slides. The process constituents are Introduction To Risk Management, Risk Management Overview, Risk Management Outline. Edit, convert and utilise the deck at will. https://bit.ly/37069Fp
Enterprise Risk Management provides decision makers with a
realistic picture of likely
outcomes to their strategic initiatives by integrating risk into the cost benefit analysis of
all strategic investments.
The slideshare identifies the six steps to moving beyond cybersecurity to cyber resilience. Ensuring federal agencies maintain continuous operations while under persistent threat. Learn more: https://accntu.re/2Q2cdDj
It covers all the important concepts and has relevant templates which cater to your business needs. This complete deck has PPT slides on Operational Risk Management Overview Powerpoint Presentation Slides with well suited graphics and subject driven content. This deck consists of total of twenty four slides. All templates are completely editable for your convenience. You can change the colour, text and font size of these slides. You can add or delete the content as per your requirement. Get access to this professionally designed complete deck presentation by clicking the download button belo
Business Risk Analysis PowerPoint Presentation SlidesSlideTeam
Presenting this set of slides with name - Business Risk Analysis Powerpoint Presentation Slides. We bring to you to the point topic specific slides with apt research and understanding. Putting forth our PPT deck comprises of twenty four slides. Our tailor made Business Risk Analysis Powerpoint Presentation Slides editable deck assists planners to segment and expound the topic with brevity. The advantageous slides on Business Risk Analysis Powerpoint Presentation Slides is braced with multiple charts and graphs, overviews, analysis templates agenda slides etc. to help boost important aspects of your presentation. Highlight all sorts of related usable templates for important considerations. Our deck finds applicability amongst all kinds of professionals, managers, individuals, temporary permanent teams involved in any company organization from any field.
Risk
Risk management
Risk Management process groups
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Responses
Control Risks
Almost every business decision requires executives and managers to balance risk and reward, and efficiency in that process is essential to an enterprise’s success. Too often though, IT risk (business risk related to the use of IT) is overlooked.
While other business risks such as market, credit and operational risks have long been incorporated into the decision-making processes, IT risk has usually been relegated to technical specialists outside the boardroom, despite falling under the same risk category as other business risks: failure to achieve strategic objectives.
This session intends to address business risks related to the use of IT, looking at industry standards, frameworks and best practices, as well as focusing on real world examples and specific plans on how to implement IT Risk Management on every level of your company.
Third-Party Risk Management: Implementing a StrategyNICSA
Two Part Series: Part I of II
Third-Party Risk Management: Implementing a Strategy
Sleep Better at Night: Learn techniques to manage risks associated with third-party relationships.
Presenting this set of slides with name - Bcm Framework PowerPoint Presentation Slides. This PPT deck displays fifty slides with in depth research. Our topic oriented Bcm Framework PowerPoint Presentation Slides presentation deck is a helpful tool to plan, prepare, document and analyse the topic with a clear approach. We provide a ready to use deck with all sorts of relevant topics subtopics templates, charts and graphs, overviews, analysis templates. Outline all the important aspects without any hassle. It showcases of all kind of editable templates infographs for an inclusive and comprehensive Bcm Framework PowerPoint Presentation Slides presentation. Professionals, managers, individual and team involved in any company organization from any field can use them as per requirement.
Risk Management Strategy is an approach to dealing with global risks focused to anticipate the events, designing and implementing procedures to minimize the occurrence of the event or its impact if it occurs.
In era of globalization and interconnected world the task to protect the company from global risks became complicated. Any kind of internally or externally risk can cause distortion to its usual business activities. The source of potential risk can be human being, technology failure, sabotage or Mother Nature. All the risks must be considered individually since they overlap to a large degree. Then our Global Risk Management consulting focuses on: terrorism, internal sabotage, external espionage, technology failure.
L’institut de promotion des formations sur l'islam est néThierry Debels
Dans le Moniteur du 25 janvier 2017 on peut lire le
Décret portant sur la création d'un Institut de promotion des formations sur l'islam.
Le ministre Marcourt (Aide à la jeunesse, des Maisons de justice, des Sports et de la Promotion de Bruxelles, chargé de la tutelle sur la Commission communautaire française de la Région de Bruxelles-Capitale):
‘La création de cet Institut concrétise les conclusions de la « Commission chargée de faire des propositions en vue d’un islam de Belgique en Fédération Wallonie-Bruxelles », co-présidée par les Professeurs Andrea Réa et Françoise Tulkens. Il s’agit donc d’un processus bien antérieur aux événements tragiques des années 2015 et 2016, qui n’ont fait qu’en confirmer la nécessité. Par « islam de Belgique », la Commission entend un islam « adapté au contexte démocratique belge et européen, respectueux de ses lois et de ses valeurs et notamment la séparation Église/État, l’égalité homme/femme, la liberté d’expression, le rejet de toute forme de radicalisme violent. »
It covers all the important concepts and has relevant templates which cater to your business needs. This complete deck has PPT slides on Operational Risk Management Overview Powerpoint Presentation Slides with well suited graphics and subject driven content. This deck consists of total of twenty four slides. All templates are completely editable for your convenience. You can change the colour, text and font size of these slides. You can add or delete the content as per your requirement. Get access to this professionally designed complete deck presentation by clicking the download button belo
Business Risk Analysis PowerPoint Presentation SlidesSlideTeam
Presenting this set of slides with name - Business Risk Analysis Powerpoint Presentation Slides. We bring to you to the point topic specific slides with apt research and understanding. Putting forth our PPT deck comprises of twenty four slides. Our tailor made Business Risk Analysis Powerpoint Presentation Slides editable deck assists planners to segment and expound the topic with brevity. The advantageous slides on Business Risk Analysis Powerpoint Presentation Slides is braced with multiple charts and graphs, overviews, analysis templates agenda slides etc. to help boost important aspects of your presentation. Highlight all sorts of related usable templates for important considerations. Our deck finds applicability amongst all kinds of professionals, managers, individuals, temporary permanent teams involved in any company organization from any field.
Risk
Risk management
Risk Management process groups
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Responses
Control Risks
Almost every business decision requires executives and managers to balance risk and reward, and efficiency in that process is essential to an enterprise’s success. Too often though, IT risk (business risk related to the use of IT) is overlooked.
While other business risks such as market, credit and operational risks have long been incorporated into the decision-making processes, IT risk has usually been relegated to technical specialists outside the boardroom, despite falling under the same risk category as other business risks: failure to achieve strategic objectives.
This session intends to address business risks related to the use of IT, looking at industry standards, frameworks and best practices, as well as focusing on real world examples and specific plans on how to implement IT Risk Management on every level of your company.
Third-Party Risk Management: Implementing a StrategyNICSA
Two Part Series: Part I of II
Third-Party Risk Management: Implementing a Strategy
Sleep Better at Night: Learn techniques to manage risks associated with third-party relationships.
Presenting this set of slides with name - Bcm Framework PowerPoint Presentation Slides. This PPT deck displays fifty slides with in depth research. Our topic oriented Bcm Framework PowerPoint Presentation Slides presentation deck is a helpful tool to plan, prepare, document and analyse the topic with a clear approach. We provide a ready to use deck with all sorts of relevant topics subtopics templates, charts and graphs, overviews, analysis templates. Outline all the important aspects without any hassle. It showcases of all kind of editable templates infographs for an inclusive and comprehensive Bcm Framework PowerPoint Presentation Slides presentation. Professionals, managers, individual and team involved in any company organization from any field can use them as per requirement.
Risk Management Strategy is an approach to dealing with global risks focused to anticipate the events, designing and implementing procedures to minimize the occurrence of the event or its impact if it occurs.
In era of globalization and interconnected world the task to protect the company from global risks became complicated. Any kind of internally or externally risk can cause distortion to its usual business activities. The source of potential risk can be human being, technology failure, sabotage or Mother Nature. All the risks must be considered individually since they overlap to a large degree. Then our Global Risk Management consulting focuses on: terrorism, internal sabotage, external espionage, technology failure.
L’institut de promotion des formations sur l'islam est néThierry Debels
Dans le Moniteur du 25 janvier 2017 on peut lire le
Décret portant sur la création d'un Institut de promotion des formations sur l'islam.
Le ministre Marcourt (Aide à la jeunesse, des Maisons de justice, des Sports et de la Promotion de Bruxelles, chargé de la tutelle sur la Commission communautaire française de la Région de Bruxelles-Capitale):
‘La création de cet Institut concrétise les conclusions de la « Commission chargée de faire des propositions en vue d’un islam de Belgique en Fédération Wallonie-Bruxelles », co-présidée par les Professeurs Andrea Réa et Françoise Tulkens. Il s’agit donc d’un processus bien antérieur aux événements tragiques des années 2015 et 2016, qui n’ont fait qu’en confirmer la nécessité. Par « islam de Belgique », la Commission entend un islam « adapté au contexte démocratique belge et européen, respectueux de ses lois et de ses valeurs et notamment la séparation Église/État, l’égalité homme/femme, la liberté d’expression, le rejet de toute forme de radicalisme violent. »
The risk management for projects attempts to recognize and manage potential and unforeseen trouble spots which may occur when the project is implemented. It identifies as many risk events as possible. Further classification of risk factors help in resolving it either by mitigation, avoiding, transferring or retaining .Methods of handling risk.
130 MASTERING RISK AND PROCUREMENT IN PROJECT MANAGEMENTre.docxjesusamckone
130 MASTERING RISK AND PROCUREMENT IN PROJECT MANAGEMENT
response plans. This proactive approach enables the project manager
time to think through responses and, in some cases, identify more
than one response where the project manager can use strategy as to
the best course of action. Proactive response planning also allows the
project manager time to document best responses and assign owner-
ship of particular risks to individuals who can carry out the response.
This is an efficient way the project manager can oversee risk response,
as preapproved responses can be assigned to individuals to be carried
out in the occurrence of a risk event and do not require subject matter
experts to use a cumbersome, last-minute decision process. Proactive
planning in risk responses is truly the best way to manage risk for
project activities; it gives the project manager much more control of
not only how to respond to risk, but who can assist in risk responses
being carried out correctly.
Both reactive and proactive response modes are the general
condition the project manager and project staff will be in based on
pre-project planning. In most cases, the assumption in risk response
planning is to address problems that will have a negative effect on
work activities and the project. Although in most cases this is true,
occasionally an issue can result in a positive outcome that was unex-
pected and will also need a response. Projects, then, have the poten-
tial of both negative and positive risks.
Negative Risks
Any influence that has a negative effect on a work activity is con-
sidered to be a negative risk and results in problems that will have to
be addressed. The project manager and other project staff evaluating
work activities for potential risks can generally spot areas that may
have a potential for a problem and will need a response plan to address
the risk, should it occur. There are four typical strategies the project
manager can use in addressing a risk event, which typically would take
into consideration the overall risk tolerance of the project and organi-
zation as well as options that might be available for response planning
and strategy project manager might use in a response that may affect
other work activities within the project.
05/20/2020 - RS0000000000000000000002125614 (Shantelle
Hildred) - Mastering Risk and Procurement in Project
Management
CHAPTER 5 • RISK RESPONSE STRATEGIES 131
• Avoid risk— Identify the root cause of a risk event and elimi-
nate or alter the conditions of the activity to create a new sce-
nario without the potential risk. This is simply eliminating the
risk before it happens and should be the best-case action in
response to a risk. The caution to the project manager and proj-
ect team for eliminating a risk is what actions have to be taken
to eliminate or alter a condition and what effects that could
have on the output deliverable for that work activity.
130 MASTERING RISK AND PROCUREMENT IN PROJECT MANAGEMENTre.docxRAJU852744
130 MASTERING RISK AND PROCUREMENT IN PROJECT MANAGEMENT
response plans. This proactive approach enables the project manager
time to think through responses and, in some cases, identify more
than one response where the project manager can use strategy as to
the best course of action. Proactive response planning also allows the
project manager time to document best responses and assign owner-
ship of particular risks to individuals who can carry out the response.
This is an efficient way the project manager can oversee risk response,
as preapproved responses can be assigned to individuals to be carried
out in the occurrence of a risk event and do not require subject matter
experts to use a cumbersome, last-minute decision process. Proactive
planning in risk responses is truly the best way to manage risk for
project activities; it gives the project manager much more control of
not only how to respond to risk, but who can assist in risk responses
being carried out correctly.
Both reactive and proactive response modes are the general
condition the project manager and project staff will be in based on
pre-project planning. In most cases, the assumption in risk response
planning is to address problems that will have a negative effect on
work activities and the project. Although in most cases this is true,
occasionally an issue can result in a positive outcome that was unex-
pected and will also need a response. Projects, then, have the poten-
tial of both negative and positive risks.
Negative Risks
Any influence that has a negative effect on a work activity is con-
sidered to be a negative risk and results in problems that will have to
be addressed. The project manager and other project staff evaluating
work activities for potential risks can generally spot areas that may
have a potential for a problem and will need a response plan to address
the risk, should it occur. There are four typical strategies the project
manager can use in addressing a risk event, which typically would take
into consideration the overall risk tolerance of the project and organi-
zation as well as options that might be available for response planning
and strategy project manager might use in a response that may affect
other work activities within the project.
05/20/2020 - RS0000000000000000000002125614 (Shantelle
Hildred) - Mastering Risk and Procurement in Project
Management
CHAPTER 5 • RISK RESPONSE STRATEGIES 131
• Avoid risk— Identify the root cause of a risk event and elimi-
nate or alter the conditions of the activity to create a new sce-
nario without the potential risk. This is simply eliminating the
risk before it happens and should be the best-case action in
response to a risk. The caution to the project manager and proj-
ect team for eliminating a risk is what actions have to be taken
to eliminate or alter a condition and what effects that could
have on the output deliverable for that work activity.
Webinar - Building Team Efficiency and EffectivenessInvensis Learning
Wouldn’t it be great if you could get to better ideas faster? If you learn to master just two thinking skills, you can! Many of the PMI supported tools have origins in creativity. As such, these tools are best leveraged when you apply divergent thinking (to generate) or convergent thinking (to narrow). This session will explore the principles of divergent and convergent thinking and provide examples of techniques to maximize their power in decision making, problem solving and performance feedback.
2013 Geospatial Data and Project Management Track, Risk Management in Geospat...GIS in the Rockies
No matter how well we plan and organize our projects, the odds are something outside the plan will happen to throw our project off-track. This “something” could impact schedule, cost, quality or any combination of the triple constraints. If at the beginning of the project we can identify potential events or risks that will have project impact; categorize each by its magnitude of impact and likelihood to occur; and develop a risk management plan to mitigate or eliminate these impacts we can lead a much more successful project. In this presentation we will explore a simple and basic approach to risk management.
Plan Risk Responses is the process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks
As per PMBOK - "The whole point of undertaking a project is to achieve or establish something new, to venture, to take chances, to risk. Risk may have positive effects or negative effects on the project “Schedule” and/or “Cost”. Positive risks are Opportunities and negative risks are losses or threats; remember both risks are uncertain “percentage of occurrence less than 80%”. Risk Management purpose is to manage (Plan and implement) these uncertainties.
With uncertainty comes opportunity. But if a project manager is consumed with managing the risks, there is little time to manage the opportunities. Good risk management is not about fear of failure; it is about removing barriers to success. This is when opportunity management emerges.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.
Tally Solutions Pvt. Ltd., is an Indian multinational company, co-founded by Shyam Sunder Goenka and his son Bharat Goenka that provides an enterprise resource planning software, headquartered in Bangalore, Karnataka India.
Founded in 1986.
The company reports that its software is used by more than 1.8 Million customers across the globe.
Striven is still relatively new to the market
Currently they're serving about 100 companies, mainly in the US.
Suitable for small, medium and large enterprises
Data transparency
Unite divisions and remote teams
Develop reports
Predict and analyze
User-friendly
Customizable
Survey Monkey is an online survey development software as a service (SaaS) that helps run professional surveys, create quizzes, and polls to get feedback for any type of audience; customers, employees, and different markets.
Cloud-based suite of products and solutions helping organizations get answers and feedbacks that drive growth.
SAP Lumira is a reporting data visualization and business intelligence software used to manipulate and visualize data.
Translates data and metrics into charts and graphs to help companies track business metrics and key performance indicators (KPIs) in real time so they can better understand performance and goals.
Developed and marketed by SAP Business Objects
Users can build analytics reports and interactive dashboards that are tailored to their specific needs.
Fedena is a free, Cloud based & opensource school management software that has more features than a student information system.
Fedena is used to efficiently manage students, teachers, employees, courses & all the system & process related to the institution.
(https://projectfedena.org/)
It is a fully web-based school ERP software provides 100+ excellent modules, 24/7 customer support, and data security.
" A great project. Fit the needs of students, professors and institutions
Siebel Crm is a complete package of Customer Relationship Management tools including sales, marketing, loyalty, user experience among many others.
It is very easy to modify and can be tailored to specific needs of different businesses with little effort making it a very flexible CRM solution.
Siebel CRM is highly scalable and flexible CRM solution
With more than 1,400 customers around the world, Ellucian Banner is the world’s leading higher education enterprise resource planning (ERP) system.
Today’s students have high expectations for service and performance at their institutions. So higher education leaders around the world are thinking more creatively about how their people, processes, and technology can work together more efficiently to meet and exceed those expectation
Banner is delivered in multiple languages, including various English dialects, Arabic, French, Spanish, and Portuguese—just one reason why it’s the premier global solution used around the world, from North and Latin America to the Middle East, Europe, Australia, and Asia.
Priority Software is a single integrated ERP software for enterprise resource planning and management. for small, medium and large enterprises. Priority business management software and its various modules offer solutions for all of the organization's ERP operational needs. Priority's targeted solutions for commercial and manufacturing businesses across a broad spectrum of industries make ERP significantly easier and more cost-effective than complex, cumbersome market alternatives.
Successfully implemented in more than 8,500 sites worldwide and supporting 200,000 users.
NetSuite’s fully integrated
“all-in-the-box” solution provides customers with all the capabilities needed to run their business processes entirely on the platform.
A completely integrated ERP solution for government agencies and schools of all sizes
the powerful ERP solution designed to encompass a wide range of public sector needs.
This integrated ERP system manages all your core functions, including financials, procurement, HR, payroll, and revenues.
Munis breaks down departmental data silos, streamlines processes, and eliminates duplicate data entry.
The company has focused primarily on developing and licensing an ERP software package to manufacturing and distribution clients. Deacom currently has more than 165 employees spread throughout its three offices in Pennsylvania , Colorado, and Germany
Enterprise application software providers CDC Software Corporation and Consona Corporation, with a total of 1,500 employees and 5,000 customers, merged in August 2012 to form Aptean Corporation
Applane is a business software suite that helps service organizations manage their business challenges better and helps them realize their goals, year on year.
Win team Enterprise Resource Planning SystemFahad Saleem
Originated in Early 80’s officially started in 1989
Its H.Q is in Omaha, Nebraska U.S.A
Janitorial & Security industries
Small to medium size organizations
Employees 101-250 average
Estimated Annual revenue is 3.8 Million
Sap business by design Cloud ERP SystemFahad Saleem
19 September 2007 - New York
Quarterly releases.
Small and Medium Sized Organizations
Employees 50 – 200 average
Revenue from 20 Million to less than or equal to 350 Million
144 Countries in 12 Languages.
Acumatica is a cloud and Browser-based ERP software that has been designed for improving the management capabilities of small and medium sized businesses.
Origin:
Private Company
Computer Software Industry
EQT AB Group
Founded in Bethesda, Maryland (2008)
Headquarters are located in Bellevue, Washington, USA
ORION ERP from 3i Infotech is an integrated, cost-effective and cloud enabled industry solution for growing and mid-sized enterprises. Built on full ready technology stack, it empowers organizations to optimize business processes and make informed decisions through anytime access to dashboards and analytics. Backed by robust service support ORION ERP is a globally trusted partner across multiple verticals with 800+ Customers, 1000+ installations, 50000+ Users, 50+ Countries.
Odoo is a full suite of business app (ERP).
It is available in different editions depending on what is right for you.
It can be used for a LOT of different industries, not specified to one.
You can use as much or as little of Odoo as you want – some use just 1 app other use all
Timely including more apps – puzzles that everyone needs.
More than 1 million satisfied users
MARG” refers to “Path” in Sanskrit & “Way” in English
Originated in Delhi, India
Commenced its operation in June,1992
India’s leading integrated providers in Pharmaceutical Industry
5. Negative Risk
Negative risks or threats are
unfavorable conditions, situations,
circumstances or risks that can have
potential negative impact on project
objectives if they materialize.
From PROJECT MANAGEMENT LEXICON 5
7. Risk Avoidance
Risk avoidance is a risk response strategy
whereby the project team acts to eliminate the
threat or protect the project from its impact. -
PMBOK® Guide Fifth Edition
• This is the most preferred risk control strategy as it
seeks to avoid risk/treats entirely.(1)
• Avoidance is accomplish through countering treats,
removing vulnerabilities in assets, limiting access to
assets, and adding protective safeguards.(2)
1. http://www.projectmanagementlexicon.com/topics/strategies-for-negative-risks-threats/
2. Risk Management Vs Risk Avoidance Presentation By William Gillette 7
8. Example of Risk Avoidance
Any changes in project ecosystem
during execution phase.
No project manager likes to handle
such changes. So avoid them.
However, avoiding risk in real life
scenarios is very rare.
https://pmpguide.wordpress.com/2011/07/22/get-it-right-concept-3-different-risk-response-strategies/ 8
9. Methods of risk avoidance
Avoidance through application of
policy.
Avoidance through application of
training and education.
Avoidance though application of
technology.
Risk Management Vs Risk Avoidance
Presentation By William Gillette 9
10. Avoidance through application
of policy
This mandates that procedure must be
followed when dealing with a sensitive
asset.
◦ Example requiring random assigned
password to access sensitive assets like
customer databases.
Risk Management Vs Risk Avoidance
Presentation By William Gillette 10
11. Avoidance through application
of training and education
New policies must be communicated
to employees.
General security awareness issues.
Awareness, education, and training
are essential if employees are to
exhibit safe controlled behavior.
Risk Management Vs Risk Avoidance
Presentation By William Gillette 11
12. Avoidance though application of
technology.
The use of countering measure to
reduce or eliminating the exposure of
a particular asset to a specific treat.
Implementing safeguards to defect
attack on systems and therefore
minimize the probability of a attack will
be successful.
Risk Management Vs Risk Avoidance
Presentation By William Gillette 12
13. Risk Transference
Risk transference is a risk response strategy
whereby the project team shifts the impact of
A threat to a third party, together with ownership of
the response. – PMBOK® Guide Fifth Edition
RC_Guide_RiskTransferStrategytoHelpProtectYou+Business_CNA.pdf
CNA Financial Corporation is a financial corporation based in Chicago, United States
Continental National American Group
http://www.projectmanagementlexicon.c
om/topics/strategies-for-negative-risks-
threats/ 13
14. CNA
Risk transfer is a risk management and control strategy that involves
the contractual shifting of a pure risk from
one party to another.
Insurance (Risk transfer is most often accomplished through an insurance
policy)
Contracts(Risk transfer can also be accomplished through non-insurance
agreements such as contracts)
Certificates of Insurance
A certificate of insurance is a form issued by an insurer or agent that lists the
coverage(s), expiration date(s) and limits of the insured's coverage(s). It
includes important information about such coverage, including policy number,
policy limits, insurer, agent, coverage period and name of the insured.
http://www.projectmanagementlexicon.c
om/topics/strategies-for-negative-risks-
threats/ 14
15. How to Employ Risk Transfer as
a Strategy for Protection
Certificates of Insurance
Additional Insured Status
Contracts You Ask Others to Sign
Contracts That Others Ask You to Sign
Record Keeping
http://www.projectmanagementlexicon.c
om/topics/strategies-for-negative-risks-
threats/ 15
16. Example of Risk Transfer
E.g. Outsourcing is the classic example
of transferring the risk.
However no risk can be 100% transferred to third
party.
If vendor fails to deliver the solution, project manager from client
organization can sue vendor, put monitory penalties on vendor as per
the contract, but still client has to bear the consequences of absence
of the desired system. So in ‘Transfer’ scenario as well, project
manager from outsourcing side should do active risk management.
http://www.projectmanagementlexicon.c
om/topics/strategies-for-negative-risks-
threats/ 16
17. Risk Mitigation
Risk mitigation is a risk response strategy whereby
the project team acts to reduce the probability of
occurrence or impact of a risk. – PMBOK® Guide
Fifth Edition
http://www.projectmanagementlexicon.com/topics/strategies-for-negative-risks-threats/
17
18. Mitigate probability
Lower down the chance of occurring the
risk. Project manager should try to
mitigate the probability of risk if it can’t be
completely avoided.
E.g. Changes during the execution phase of the project. In ideal
world, this risk should be avoided as we saw above. However, than
never happens in real life scenarios, hence project manager
should strive to mitigate the probability of changes during
execution phase. How? Either foresee all the requirements and
elicit them before execution phase or apply strict change control
measures.
https://pmpguide.wordpress.com/2011/07/22/get-it-right-concept-3-different-risk-response-strategies/ 18
19. Mitigate impact
Assuming risk still occurs, project
manager should look forward to lower
the impact of risk on the project.
E.g. In the same example of changes during the execution
phase of the project, project manager should build strategy to
keep the impact of changes as minimal as can be. How?
Create flexible enough design to adapt the changes or build
reusable code.
https://pmpguide.wordpress.com/2011/07/22/get-it-right-concept-3-different-risk-response-strategies/ 19
20. Risk Acceptance
Risk acceptance is a risk response strategy
whereby the project team decides to acknowledge
the risk and not take any action unless the risk
occurs. – PMBOK® Guide Fifth Edition
There are primarily two types of risk :
1. Passive Acceptance
2. Active Acceptance
http://www.projectmanagementlexicon.c
om/topics/strategies-for-negative-risks-
threats/ 20
21. Risk Acceptance
If the servers are in a permanent test
environment, it is good, but if they are to
be deployed to a production
environment, the risks will no longer be
acceptable. This is why one should think
twice before using the risk accepting
option this way.
https://blog.outpost24.com/2014/02/20/r
isk-acceptance/ 21
22. Example of Risk Acceptance
E.g. Market conditions, Change in government policies, Change in
organization policies of a client.
Let’s say client decides to stop outsourcing and build in-house
capabilities. This leads to another risk of ‘lowered revenue levels
for your org’.
Another example is of ‘unfinished’ touch to short lived applications.
E.g. Data transfer utilities. Since this is used by small users and for
shorter duration, one need not go for fancy UI. Risk of not so good
user experience is accepted.
https://pmpguide.wordpress.com/2011/07/22/get-it-right-concept-3-different-risk-response-strategies/ 22
23. Passive Acceptance
Passive acceptance is a risk response technique
employed when the risk cannot be
avoided/mitigated in any way and the project team
must accept the consequences of the risk when it
materializes without an
adequate response strategy.(1)
In this we find Work Around(2)
1. http://www.projectmanagementlexicon.com/topics/strategies-for-negative-risks-threats/
2. http://www.slideshare.net/aleemhabib7/project-risk-management-pmbok-5
23
24. Active Acceptance
Active acceptance is a risk response technique
employed when the risk cannot be
avoided/mitigated in any way and the project team
must accept the consequences of the risk by
developing contingency plans or reserve to put in
action when the risk materializes.
http://www.projectmanagementlexicon.com/topics/strategies-for-negative-risks-threats/ 24
25. Active Acceptance
Contingency plan
Fall back Plan
For Example:
setting aside contingency to offset the
effect of the risk.(2)
1. http://www.slideshare.net/aleemhabib7/project-risk-management-pmbok-5
2. https://pmpsnacks.wordpress.com/2011/07/02/be-careful-5-risk-acceptance-active-vs-passive/ 25
26. Example for Active & Passive
The software that was purchased for the project will
be defective.
There is a probability of 2 percent that this will occur.
The CD of the software is delivered on will not work
and will have to be replaced with a new CD.
This causes a delay of five days to a task that has
twenty-five days of free float.
Passive acceptance will probably be used in
dealing with this risk.
http://www.projectmanagementlexicon.com/topics/strategies-for-negative-risks-threats/ 26
27. Active and Passive Acceptance
Comparison
One simple way to remember this:
remember disaster movies like “Titanic”,
“Armageddon” or “2012”.
There are always those characters in the movie
where they just accept that they are going to die
and of course there are the hero's who take some
action to get out alive. Think of the former as
“Passive Acceptance” and the hero's as “Active
Acceptance”.
https://pmpsnacks.wordpress.com/2011/07/02/be-careful-5-risk-acceptance-active-vs-passive/ 27
28. Risk Acceptance
It should be possible to accept risks in
different ways
A conditional accept
A time-based accept
An indefinite accept
https://blog.outpost24.com/2014/02/20/r
isk-acceptance/ 28
29. Example of the conditional
risk
An example of the conditional risk
acceptance can be that a web
application firewall should be in place.
This should be marked as a time
based acceptance to ensure that the
compensating control is still in place
and is still effective.
https://blog.outpost24.com/2014/02/20/r
isk-acceptance/ 29
30. Time based acceptance
The time based acceptance is the
number one most commonly used
form of risk acceptance, and it is
based on the very common statement
that something will be fixed “soon”.
https://blog.outpost24.com/2014/02/20/r
isk-acceptance/ 30
31. Time based acceptance
Example
for example it may not be possible to
patch now, but 3 months from now the
systems will be updated. This risk
should be set to accepted, but only for
3 months. After that, it is important to
follow up on the risk as if it is a new
risk.
https://blog.outpost24.com/2014/02/20/r
isk-acceptance/ 31
32. Indefinite accept
The indefinite accept should be used
carefully, only when there is a
business justification
For example for risks when the tool
sets up a fulfilled condition for its
report, or where the conditional state
is known to be permanent.
https://blog.outpost24.com/2014/02/20/risk-
acceptance/
32
35. “ Smoking can cause cancer”
ACCEPT TRANSFER MITIGATE AVOID
At the onset of
smoking habit,
you accept the
risk.
When you get
conscious of its
hazards, you
buy a insurance
cover to ease of
medical cost.
When negative
consequences
of the smoking
starts
appearing, you
tend to reduce
the intake
On the arrival of
the doctor’s
warning, that
you have
crossed the
threshold and
life is at risk, you
jump on ‘avoid’
strategy.
http://www.projectmanagementlexicon.com/topics/ BY Saket Bansel 35
36. Questionnaire
You are working on a Road Construction Project and
you Realized that the Proposed Road is passing
through the disputed land and because of this dispute
you have a Risk of not getting the approval from
authorities on time, you discussed this problem with
your stakeholders and made them agreed to change the
path of road in such a way that this area is now not
covered in your project scope.
Which risk response strategy is applied here?
A. Avoid
B. Accept
C. Mitigate
D. Transfer
www.Forum.izenbridge.com 36