TOPIC: Risk Mitigation and Risk Acceptance

Hi,

Could anyone please clarify,risk mitigation strategy with backup plan and risk acceptance with back up plan..
Eg.If we have server down issue in the network, backuping oll datas in harddisk ,what is this strategy is it risk mitigation or risk
Eg2-Making a tent to avoid risk associated with rain, is it mitigation or acceptance

Thanks
John George

Hi John,

Let's first revisit acceptance and mitigation. Risk mitigation is doing something proactively, in advance, to bring down the probability or impact of your risk. Risk acceptance is wherein we are not doing anything in advance, however if I spot a warning sign or indication of a possible risk, then I will perform certain actions which will save my project from this risk. In this case we have identified some triggers or symptoms and have created an action plan, but we've not done anything more.

So how are these really different? In risk mitigations even if the risk does not actually occur, you are actually spending money, time, resources etc. prior to the risk occurrence, because you are doing things in advance to bring down the risk impact. However, in risk acceptance you are not spending money or time in advance but you are keeping them aside (allocating them as reserves), so that when you see those warning signs or indicators, you will use them and save your project from that risk event.

Now with this understanding, what do you think Eg 1 and 2 given by you would fall under?

both of those cases is a risk mitigation strategy...I think so.

Hi Rahul,

Thank you very much for the explanation,its well explained. Yes,both are risk mitigation strategy.Thanks to all for your kind inputs.

John

Hi John,

Glad we could be of help. Please feel free to post any further queries that you may have.

You have identified a risk that at a certain point in your project you may need extra
quantities of a consumable which you thought of earlier. The chance of this event
occurring is 20% and if it occurs it will cost you 150 USD. So, you develop a
contingency plan for this risk and assign a risk owner. What kind of risk response
strategy is this?
Can you please answer me this 1? I am still confused about this question

Thanks my dear . Helpful and comprehensive explanation