Five Strategies to Deal with Threats
Discuss, analyze, and indicate the importance of each of the five risk response strategies that may be considered for dealing with threats. Give an example for each of the strategies to deal with threats. Discuss the impact of the different strategies for threats versus opportunities in risk responses.
PMI, in section 11.5.2.7, has identified the following strategies to deal with threats:
Escalate
Avoid
Transfer
Mitigate
Accept
Sample Solution
1. Avoidance: This strategy involves eliminating or reducing the risk by avoiding the situation that created it in the first place. For example, an organization can avoid risks posed by political instability in certain countries by choosing to not operate there. The impact of using this strategy for threats is that it eliminates or reduces the chance of suffering from a particular threat. However, for opportunities, it may mean missing out on potential gains or advantages if there is no other way to take advantage of them without taking on some element of risk.