Risk response plan acoording NRM2

• Risk Response Plan

1. Risk Acceptance or Risk Retention:

• It is the risk which is accepted and still under control also budget.
• Low Probability and low impact.
• We can deal with this type of risk by reserve at risk or contingency plan. (Not sure)
• We call it at NRM “Employer Residual Risk” or (Risk allowance) at the cost plan

1. Risk transfer:

• Pass the risk to another party who is known for better control.
• Done by Subcontracting or Contractual Provisions.
• Used at specialized works and risks with medium severity.
• Example:

1. Risk Mitigation or Risk Reduction:

• Risks Which we can reduce its impacts or probability to occurs. (Chance to reduce)
• The risk after transferred should be at acceptable threshold.

1. Risk Avoidance:

• Risk Can be awarded / avoided by removing the source of the risk.
• Can be by:

1. Change Management plan.
2. Decrease the scope of the project.
3. Extend the project Schedule.
4. Reappraisal the study of the project.

• Usually for high probability and high impacts.

1. Risk Sharing:

• Occurs when we failed to transfer the risk, then he will share the risk with other party.” Sharing ratio”.

1. Risk Enhance: Positive risk only

• Increase the opportunity of the positive risks by increase the impact or probability.

1. Risk Exploit: Positive risk only

Do any thing to ensure that the opportunity of the positive risks will happen 100% by increase the impact or probability