Risk Management Strategies for Project Management

This article discusses various risk management strategies for project management, including avoidance, acceptance, and transference. It provides examples of when to use each strategy and how to implement them effectively. The article also highlights the importance of proper risk assessment and response in project management.

Question 3:
1. Treatment strategy to be considered ( Case 1)
It has been noted that development team determined risk with the windows phone because the
team had little experience with windows mobile operating system. It is also not capable of
performing many functions without commercial plug ins. Windows is not compatible with the
software and thus it needs to be removed from the project. The type of treatment strategy that the
company shall implement is to avoid it. It can choose not to take the risk by avoiding the actions
that actually leads to risk. .
2. Treatment strategy to be considered (Case 2)
When the section of the project becomes too difficult for the company to perform then under
such cases it becomes important that the company tries to make use of the mitigation strategy. It
tends to diminish the effects by reducing exposure towards risks by minimising the probability of
its occurrence. Minimising the impact and probability of occurrence of risk tends to be the
method that comprises of administering the risk in a controlled manner by means of elaboration
of an intervention plan with real measures for mitigation at times after it has taken place.
3. Case of Transference (Case 3)
Transference is considered to be risk management strategy that is not used so often and is utilised
in case of those projects where there are different parties. Here the party tends to transfer the
impact along with the management of risk to someone else. In normal cases, the transference
arrangement tends to be written up into project contracts. In the case study, it has been found that
the manager is sceptic if the project would contravene with the law because he is managing
project that makes use of the subroutines and library from distinct sources. Hence, here the HR
department shall employ a person with specialist knowledge in this area. The specialist shall be
capable of managing the risks by means of additional training. Hence, it can be revealed that the
case is exact example of transference.

4. Difference between acceptance and avoidance (Case 4)
In case of acceptance of the risks, the risk is permitted to run its course. Acceptance generally
takes place when the project manager would be certain that the risk might not be avoided. This
type of risk takes place in cases when the cost linked with the removal of the risk tends to be
quite high and might not be undertaken by the manager. It also takes place when the
implementation of the alternative strategy is not possible.
However, in case of avoidance of risk, it implies complete removal or elimination of the risk. It
implies the fact that those activities that lead to risks shall not be approved for execution through
management programme. Avoidance of the risk takes place through development of proper
control methods that shall permit replacement of the risk-bearing actions with other types of
actions which are less risky or not risky at all and which lead to the fulfilment of the set
objectives. However, the entity needs to take into account the loss of potential gains that the firm
miss by approving the execution of the activity.

University of Vermont, 2012. Enterprise Risk Management Program Guide to Risk Assessment
& Response. Risks. [Online] Available at: http://www.uvm.edu/~erm/RiskAssessmentGuide.pdf
[Accessed December 05, 2018].