Element 3 Risks - What Could Go Wrong

Risk is defined by PMI (2008) as an uncertain event or condition that, if it occurs, has a positive or negative effect on a project s objectives. While unexpected positive effects do occur, our concern is with those that would have negative effects. Consider a 

Step 3 - Develop Responses to the High-Priority Risks 

Transference is the second category. Seek to shift the consequence of a risk to a third party. While this shifts at least some of the ownership and responsibility for the risk s management, it does not eliminate it. An example is to subcontract the geotechnical work. 

Acceptance is the fourth and last category. In this case, the project team decides not to change the PP to deal with a risk. Active acceptance may include developing a contingency plan should a risk occur. With this category, the project team would do the geotechnical work as requested. 

Next take a high-priority risk, like scarcity of a particular construction material as shown in Table 5.1. Work through the four categories for dealing with that risk. The result of the team effort is a list of response options, such as those in the third column. Determine the actual or relative cost of each response option as suggested by the items in the fourth column. This third or develop response step ends with a selection of one or more responses for each high-priority risk. 

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