According to the PMBOKGuide, the strategy of establishing a contingency reserve is the hallmark of Active Risk Acceptance. Risk strategies are categorized based on how the project team chooses to address a specific threat.
* Risk Acceptance: This strategy is used when the project team decides not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy.
* Passive Acceptance: Requires no action except periodic review of the threat.
* Active Acceptance: The most common approach, which involves establishing a contingency reserve, including amounts of time, money, or resources, to handle the threat if it occurs.
* Contingency Reserves: These are specifically allocated for " known-unknowns " -risks that have been identified and analyzed, and for which a response has been developed. These reserves are part of the cost baseline and the schedule baseline.
* The Logic: By setting aside a reserve, you aren ' t trying to stop the risk (Avoid), reduce its impact before it happens (Mitigate), or give the risk to someone else (Transfer). You are simply saying, " If this happens, we have the budget/time set aside to deal with it. " Analysis of Other Options:
* B. Transferring: This involves shifting the impact and ownership of a threat to a third party (e.g., insurance, performance bonds, or warranties). It almost always involves paying a risk premium to the party taking on the risk.
* C. Avoiding: This involves changing the project management plan to eliminate the threat entirely.
Examples include extending the schedule, changing the strategy, or reducing scope to remove the risk element.
* D. Mitigating: This involves taking action to reduce the probability of occurrence or the impact of a threat. While mitigation often costs money (like adding redundant components), it is a proactive step to make the risk less likely or less severe, rather than just setting aside money to pay for it if it happens.