6.0 RISK RESPONSE PLANNING……..

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RISK LEVEL MATRIX

SEVERITY

Critical Very Serious Serious Marginal Negligible

(5) (4) (3) (2) (1)

Frequent 25 20 15 10 5
(5) Operation not permissible Operation not permissible High priority Review at appropriate time Risk acceptable
LIKELIHOOD

Moderate 20 16 12 8 4
(4) Operation not permissible Operation not permissible High priority Review at appropriate time Risk acceptable

Occasional 15 12 9 6 3
(3) High priority High priority Review at appropriate time Risk acceptable Risk acceptable

Remote 10 8 6 4 2
(2) Review at appropriate time Review at appropriate time Risk acceptable Risk acceptable Risk acceptable

11.5 Risk Response Planning

Risk response planning is the process of developing options and determining actions to
enhance opportunities
6.1 Risk Response Planning
reduce threats to the project`s objectives. It includes the identification and assignment of individuals or

parties to take responsibility for each agreed risk response. This process ensures that identified risks are

properly addressed. The effectiveness of response planning will directly determine whether risk increases

or decreases for the project.

Risk response planning must be appropriate to the severity of the risk, cost effective in meeting the

challenge, timely to be successful, realistic within the project context, agreed upon by all parties involved,

and owned by a responsible person. Selecting the best risk response from several options is often

required.

Inputs
.1 Risk management plan
.2 List of prioritized risks
.3 Risk ranking of the project
.4 Prioritized list of Outputs
quantified .1 Risk response plan
risks
Tools & .2 Residual risks
.5 Probabilistic analysis of
the Techniques .3 Secondary risks
project .1 Avoidance .4 Contractual agreements
.6 Probability of achieving .2 Transference .5 Contingency reserve
the .3 Mitigation amounts needed
cost and time objectives
.4 Acceptance .6 Inputs to other processes
.7 List of potential responses
.7 Inputs to a revised
.8 Risk thresholds project
.9 Risk owners plan

.10 Common risk causes

.11 Trends in qualitative and
quantitative risk analysis
results