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Resolution of risk
Short answer
Resolution of risk means selecting and implementing risk response strategies to address identified risks. For threats, strategies are avoid, mitigate, transfer, or accept; the process includes assigning an owner, developing contingency plans, and monitoring residual risks until closure.
What do you mean by resolution of risk?
Resolution of risk refers to deciding on and implementing the response that deals with an identified risk, so that its probability or impact is reduced (threats) or increased (opportunities), or the risk is accepted knowingly. It corresponds to Plan Risk Responses and Control Risks in PMBOK.
Ways of resolving negative risks (threats)
| Strategy | Meaning | Example |
|---|---|---|
| Avoid | Change the plan to eliminate the risk | Use proven technology instead of an untested one |
| Mitigate | Reduce probability or impact | Prototype early, train staff |
| Transfer | Shift impact to a third party | Insurance, fixed-price contract, warranty |
| Accept (active or passive) | Keep the risk, maybe with contingency reserve | Document and set aside reserve |
Steps of resolution
- Select the risk (from the prioritised risk register).
- Develop response options and evaluate their cost versus benefit.
- Choose the best response and prepare contingency plan (if risk event occurs) and fallback plan (if contingency fails).
- Assign an owner, set triggers and funds.
- Implement the response; update the schedule, cost and contracts.
- Monitor residual risks and secondary risks.
- Close the risk when it is no longer relevant.
Risk -> Choose strategy -> Plan (owner, cost, trigger)
-> Implement -> Monitor residual risk -> Close
Key terms
- Residual risk: remains after response.
- Secondary risk: new risk caused by the response.
- Risk trigger: warning sign.
- Workaround: unplanned response to an unidentified risk that occurred.
Example: Risk of server failure. Resolution: mitigate by adding a backup server (cost Rs 1 lakh), transfer part via AMC contract, and keep a contingency plan to shift to the cloud if both fail.
✓ Answer checked by Claude Opus 5.5 (high effort)
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