As a project manager, you have decided to take action to reduce both the probability and impact of a risk. This action is part of which of the following risk response categories?
A. Acceptance
B. Avoidance
C. Control (Mitigation)
D. Analysis
The Correct Answer and Explanation is:
Correct Answer: C. Control (Mitigation)
Explanation:
In project management, risk response strategies are key actions taken to address identified risks. These strategies fall into several categories, including Avoidance, Acceptance, Transfer, and Control (Mitigation). When a project manager takes proactive steps to reduce both the probability (likelihood) and impact (severity) of a risk, the action is categorized as risk mitigation, also known as Control.
Risk Mitigation (Control) is aimed at lessening the effects of potential risks by reducing their likelihood of occurrence and/or minimizing the damage if they do occur. For example, if a project manager identifies that a critical software system might fail, they might mitigate this risk by implementing additional testing procedures and backup systems. These actions don’t eliminate the risk entirely but control it by lowering the chances of occurrence and reducing the impact if it happens.
Let’s clarify the other options for contrast:
- A. Acceptance involves acknowledging the risk without taking any action unless the risk occurs. This strategy is typically used for low-priority risks or when mitigation is too costly.
- B. Avoidance means changing the project plan to entirely eliminate the risk. For example, removing a risky feature from a project would be an avoidance strategy.
- D. Analysis is not a risk response strategy. Instead, it’s part of risk management processes like risk assessment, where risks are identified, analyzed, and prioritized.
In conclusion, the act of reducing both the probability and impact of a risk clearly aligns with the Control (Mitigation) category. It reflects a calculated and proactive approach to risk management, aiming to ensure that potential issues do not derail project objectives.
