Risk acceptance and/or risk avoidance?

Success Problem

When is it better to accept the risk or to avoid the risk?

Impact

Risk can be acceptable in contrast to the costs of the risk mitigation measures.

Recommendation

Risk acceptance is the project manager’s decision to accept the risk implica-tions without countermeasurements, because he/she considers the conse-quences of the risk as acceptable in contrast to the costs of the risk mitigation measures. It is also a personality characteristics, resident is the rather carefull approach to the risk taking or high rolling. Risk avoidance is the project manager’s decision to fully avoid the risk or to eliminate its consequence for project success. For example the project ma-nager can reject the involvement in the project or he/she can decline a riskful project owner’s requirement, pass on the risky technical solution etc.

Category

• Risk & Opportunities