---
title: "Strategies for threats and opportunities"
subject: "ICT Project Management"
chapter: 12
key: "semester_7/ict_project_management:risk-response-strategies"
source: https://www.bctengineer.com/q/semester_7/ict_project_management/risk-response-strategies
site: BCT Engineering
---

# Strategies for threats and opportunities

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/risk-response-strategies
- Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-12

## Question

What are strategies for negative risks or threats as well as strategies for positive risks or opportunities?

## Short answer

For negative risks: avoid (remove threat), transfer (shift impact to third party), mitigate (reduce probability/impact), and accept (with or without contingency). For positive risks: exploit (ensure it happens), enhance (increase probability/impact), share (partner), and accept.

## Answer

Risk response strategies are the options for dealing with risks. PMBOK separates strategies for negative risks (threats) and for positive risks (opportunities); one strategy, accept, is common to both.

#### Strategies for negative risks (threats)
1. **Avoid**: change the plan or scope to eliminate the threat or protect objectives from its impact. Example: drop a high-risk feature, use proven technology, clarify requirements.
2. **Transfer**: shift the negative impact and ownership of response to a third party; the risk is not eliminated. Example: insurance, performance bonds, warranties, fixed-price contract for outsourcing.
3. **Mitigate**: reduce the probability or impact to an acceptable threshold. Example: more testing, prototypes, simpler design, backup systems, training.
4. **Accept**: acknowledge the risk and take no action unless it occurs. Passive: do nothing; active: establish a contingency reserve or plan.

#### Strategies for positive risks (opportunities)
1. **Exploit**: make sure the opportunity definitely happens. Example: assign the best people to finish early and gain a bonus.
2. **Enhance**: increase the probability or positive impact by influencing its causes. Example: add resources to finish earlier.
3. **Share**: allocate ownership to a third party best able to capture the opportunity. Example: joint venture, partnership.
4. **Accept**: be willing to take the benefit if it occurs but do not actively pursue it.

| Threat strategy | Opportunity strategy |
|---|---|
| Avoid | Exploit |
| Transfer | Share |
| Mitigate | Enhance |
| Accept | Accept |

#### Other strategies
- **Contingency response strategies**: plan used only if a trigger occurs.
- Fallback plan if contingency fails.

```text
Risk -> Threat?  Avoid/Transfer/Mitigate/Accept
     -> Opportunity? Exploit/Share/Enhance/Accept
```

**Example:** A supplier delay threat is mitigated by using two suppliers; an opportunity of early completion with a bonus is enhanced by adding two developers.

## Check yourself

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

1. Which opportunity strategy corresponds to the threat strategy 'Transfer'?
   A. Exploit
   B. Enhance
   C. Accept
   D. Share
   Answer: D. Avoid-Exploit, Transfer-Share, Mitigate-Enhance, Accept-Accept. (Key point: Strategy pairing)

2. What does the exploit strategy do?
   A. Increases the probability of an opportunity somewhat
   B. Ensures the opportunity definitely happens
   C. Gives ownership to nobody
   D. Takes no action
   Answer: B. Exploit makes sure the opportunity is realised, e.g. assigning the best people to finish early and gain a bonus. (Key point: Exploit)

3. What is true about transferring a threat?
   A. The risk is eliminated
   B. Impact and ownership of response shift to a third party but the risk is not eliminated
   C. The probability is reduced to zero
   D. It is used for opportunities only
   Answer: B. Transfer only shifts the impact and response ownership; the risk still exists. (Key point: Transfer limits)

4. What is active acceptance of a threat?
   A. Doing nothing at all
   B. Changing the scope
   C. Establishing a contingency reserve or plan
   D. Buying insurance
   Answer: C. Passive acceptance means doing nothing; active acceptance sets up a contingency reserve or plan. (Key point: Active accept)

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