150 Project Management
Assumption. This means that you are aware of the risk, but
choose to take no action on it. You’re agreeing to accept its
consequences or to simply deal with them if it happens. That’s
essentially how you’re treating threats that fall below the threat
rating described above. Assumption is also a valid strategy in
situations where the consequences of the risk are less costly
and/or less traumatic than the effort required to prevent it.
Prevention. Prevention refers to action taken to reduce the prob-
ability of occurrenceof a potential problem. Ordinarily, it will be
your first course of action in dealing with high-threat problems.
Prevention begins with identifying the root causes of potential
problems. Determining root cause may allow you to identify
preventive measures that
could reduce the probabili-
ty that a given problem
will occur. Be sure to
revise the project plan to
incorporate any preventive
actions that you intend to
take, so that they’re not
overlooked or forgotten.
Mitigation of Impact. This strategy aims at reducing the nega-
tive effects of a problem. You’re taking measures to lessen the
impact. For example, installing air bags in automobiles does
nothing to reduce the probability of accidents, but it may signifi-
cantly reduce the effects. It’s important to note that mitigation
tactics may be viewed as a waste of time, money, and effort, if
the potential problem does not occur.
Contingency Planning. Contingency plans are specific actions
that are to be taken when a potential problem occurs. Although
they’re intended to deal with problems only after they’ve
occurred, contingency plans should be developed in advance.
This helps ensure a coordinated, effective, and timely response.
Also, some plans may require backup resources that need to be
arranged for in advance. Contingency planning should be done
An Ounce of
Prevention ...
Prevention is often the least
costly and most reliable strategy for
dealing with risk—particularly in situ-
ations where the impact is high.You
should plan and execute preventive
measures whenever it makes sense.