According to the PMBOK Guide, specifically within the Plan Risk Responses process, risk response strategies are categorized based on whether the risk is a threat (negative) or an opportunity (positive).
* Sharing (Positive Risk/Opportunity): This strategy involves allocating some or all of the ownership of an opportunity to a third party who is best able to capture the opportunity for the benefit of the project.
* Mechanism: It often involves forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures established with the express purpose of managing the opportunity.
* Goal: To share the potential benefits with a third party who has specialized skills or resources that the project team lacks, thereby increasing the probability of the opportunity occurring or the magnitude of the benefit if it does.
* Examples of Sharing:
* A joint venture between two construction firms to bid on a massive infrastructure project that neither could handle alone.
* Profit-sharing agreements with a vendor if they manage to reduce production costs below a certain threshold.
Comparison with other options:
* A. Mitigate: This is a strategy for threats (negative risks). It involves taking action to reduce the probability of occurrence or the impact of a threat.
* B. Transfer: This is a strategy for threats (negative risks). It involves shifting the impact of a threat to a third party, together with ownership of the response (e.g., buying insurance or using performance bonds). While it involves a third party, it is specifically for negative impacts.
* D. Avoid: This is a strategy for threats (negative risks). It involves changing the project management plan to eliminate the threat entirely, such as changing the scope or extending the schedule to bypass a risky period.