---
title: "Resolution of risk"
subject: "ICT Project Management"
chapter: 12
key: "semester_7/ict_project_management:resolution-of-risk"
source: https://www.bctengineer.com/q/semester_7/ict_project_management/resolution-of-risk
site: BCT Engineering
---

# Resolution of risk

ICT Project Management · Chapter 12: Project Risk Management

- Asked in: year not given
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/ict_project_management/resolution-of-risk
- Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-12

## Question

What do you mean by 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.

## Answer

**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
1. Select the risk (from the prioritised risk register).
2. Develop response options and evaluate their cost versus benefit.
3. Choose the best response and prepare **contingency plan** (if risk event occurs) and **fallback plan** (if contingency fails).
4. Assign an owner, set triggers and funds.
5. Implement the response; update the schedule, cost and contracts.
6. Monitor residual risks and secondary risks.
7. Close the risk when it is no longer relevant.

```text
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.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What does resolution of risk mean?
   A. Only listing identified risks
   B. Deciding on and implementing a response to an identified risk
   C. Ignoring low-priority risks
   D. Calculating the probability of risks
   Answer: B. Resolution means choosing and implementing responses that reduce threats, increase opportunities, or knowingly accept the risk. (Key point: Meaning of resolution)

2. Which of these is an example of transferring a risk?
   A. Building a prototype early
   B. Dropping a risky feature
   C. Buying insurance or using a fixed-price contract
   D. Setting aside a contingency reserve
   Answer: C. Transfer shifts impact to a third party, e.g. insurance, fixed-price contract or warranty. (Key point: Transfer strategy)

3. What is a fallback plan?
   A. A plan used if the contingency plan fails
   B. A response to an unidentified risk
   C. A plan that eliminates the risk
   D. A warning sign of a risk
   Answer: A. Contingency plan is used if the risk occurs; fallback plan is used if the contingency fails. (Key point: Contingency vs fallback)

4. What is a secondary risk?
   A. The risk that remains after a response
   B. A new risk caused by implementing a response
   C. A low-priority risk
   D. A risk that has become irrelevant
   Answer: B. Secondary risk is created by the response itself, while residual risk is what remains after the response. (Key point: Secondary risk)

## Related in ICT Project Management

- [Risk](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Adefine-risk) — ICT Project Management, chapter 12
- [Project risk](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-risk) — ICT Project Management, chapter 12
- [Risk management plan](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Arisk-management-plan) — ICT Project Management, chapter 12
- [Risk audits](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Arisk-audits) — ICT Project Management, chapter 12

## Related in other subjects

- [Safety risk-benefit analysis; dispute resolution](https://www.bctengineer.com/question.md?key=semester_8%2Fengineering_professional_practice%3Asafety-risk-benefit-conflict-resolution) — Engineering Professional Practice, chapter 6
- [Gumbel flood, confidence limits, hydrologic risk](https://www.bctengineer.com/question.md?key=semester_5%2Fengineering_hydrology%3Agumbel-100-500-n30-risk) — Engineering Hydrology, chapter 6, asked 2×
- [Risk management and its steps](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-management-define-steps) — Project Engineering, chapter 5, asked 2×
- [Return period for bridge design at 5% risk](https://www.bctengineer.com/question.md?key=semester_5%2Fengineering_hydrology%3Abridge-return-period-5pct-risk) — Engineering Hydrology, chapter 6