Rather than something complicated, a risk response is at its core simply a way to describe and classify actions you can take to minimize the risk's chance of occurring or reduce its cost impact. Risk responses should be timely, practical and specific to the risk in question. The best responses are developed with input from all stakeholders.

Not all risks can be eliminated through a response plan; the typical responses to a risk are one of:

• Accept the risk - normally for external risks beyond your control which have a low probability. Make reserves for its weighted impact and optionally enter an action plan what to do in case the risk is triggered
• Avoid the risk - eliminate the impact via an action plan, or remove the cause of the risk
• Closed -
• Escalate the risk - seek engagement from a stakeholder (e.g. senior mgt.) who can eliminate, mitigation or transfer the risk
• Mitigate or control the risk - planning or performing tasks which reduce the impact or probability of the risk occurring
• Retire the risk - mark the risk as no longer applicable
• Transfer the risk - make another party or person responsible for the risk e.g. buy insurance or set-up contract so client is responsible

If you avoid a risk the cost impact defaults to either zero or to the cost of your action plan

If you retire a risk the risk's weighted impact should not be included in the project's management reserve

All other risk response options - aside from mitigate or control which has its own article - account for the weighted cost impact in the project's management reserve or risk adjusted bid cost, together with an optional action plan to keep track of who should do what.

Click on the RESPONSE tab in your risk to view or enter a risk response. You will be presented with a dropdown from "Accept" ... to "Transfer", as shown in the screen shot above, plus "Escalate".Select the one best represents your company's response to this risk, based on the definitions above.

1. If you choose mitigate or control above you will be asked to enter a mitigation plan.
2. An explanation for how you are responding to the risk in the text box which is presented. You can modify your response at any time; the same explanation text applies to all responses.

Mitigating or controlling a risk lessens the potential probability or impact, so with this response you should maintain the residual or target cost impact for your risk.

Opportunity response strategies are currently the same as risk response strategies however in future this may change in line with best practices to something like:

• Exploit - carry out a plan or tasks to make the opportunity happen (similar to mitigating a risk)
• Enhance - increase the change or impact of a potential opportunity
• Share - share the benefit of an opportunity with another party
• Retire - mark the opportunity as no longer applicable