Factors for Prioritizing Risk Response Strategies

AC.

When it comes to developing risk response strategies, there are a variety of factors to consider. Two primary factors used to prioritize the development of risk response strategies are likelihood and impact.

Likelihood refers to the probability or chance that a risk will occur. It is important to consider the likelihood of a risk when developing a risk response strategy because it helps to determine how much time, effort, and resources should be allocated to mitigate the risk. For example, if a risk is deemed very likely to occur, it may be necessary to allocate significant resources to develop a response strategy that effectively addresses the risk.

Impact refers to the effect that a risk will have on the project or organization if it does occur. It is important to consider the impact of a risk when developing a risk response strategy because it helps to determine the level of response required. For example, if a risk has a high impact on the project or organization, it may be necessary to develop a response strategy that involves significant resources to mitigate the risk.

Timeline, quality, and cost are also important factors to consider when developing risk response strategies, but they are not primary factors. Timeline refers to the amount of time available to develop and implement a risk response strategy. Quality refers to the level of quality required in the risk response strategy. Cost refers to the budget available for the development and implementation of the risk response strategy.

In summary, when developing risk response strategies, it is important to prioritize based on the likelihood and impact of the risk, as these are the primary factors that will help determine the appropriate level of response required.