While for risks with limited probabilities andor

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Unformatted text preview: em. While, for risks with limited probabilities and/or impacts, you would be less willing to do so. Dr. Maged Ezzat Georgy Risk Tolerance Risk tolerance is … “A measure of the willingness of some person or A measure some organization to accept or avoid risk”. Acceptable risks vs. unacceptable risks. Risk Risk takers vs. risk avoiders. Dr. Maged Ezzat Georgy Very Low Low Moderate Very High High Impact M A T R I X Dr. Maged Ezzat Georgy Risk Response Strategies Strategies… Strategies… There are four known strategies to deal with project risks: ◦ Acceptance. ◦ Avoidance. ◦ Transfer. ◦ Mitigation. Dr. Maged Ezzat Georgy Risk Acceptance Acceptance of a risk means: The The severity of the risk is low enough (lower than our tolerance level) that we will do nothing about the risk unless it occurs. Once the risk occurs, we will fix the problem and we move on. Dr. Maged Ezzat Georgy Risk Risk Acceptance There are two kinds of risk acceptance: ◦ Active ◦ Passive. Dr. Maged Ezzat Georgy Active vs. Passive Acceptance Risk acceptance is considered active when: “we make a plan for...
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This document was uploaded on 01/22/2014.

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