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P3 Toolkit

Analytical Tools

P3-VALUE: Risk Assessment Tool User Manual

December 30, 2013

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Chapter 7. Risk Mitigation

Risk mitigation involves developing strategies that may be employed to lower the probability of the risk event occurring or the consequence of the risk if it occurs. Risk mitigation is one of the four risk management strategies discussed below.

Mitigate

During the risk assessment process, the project development team should identify strategies for dealing with each risk. Potential risk strategies include:

  • Avoidance: The team changes the project plan to eliminate the risk or to protect the project objectives from its impact. The team might achieve this by changing scope, adding time, or adding resources (thus relaxing the so-called "triple constraint").
  • Transference: The team transfers the financial impact of risk by contracting out some aspect of the work. Transference reduces the risk only if the contractor is more capable of taking steps to reduce the risk and does so.
  • Mitigation: The team seeks to reduce the probability or consequences of a risk event to an acceptable threshold. It accomplishes this via different means that are project- and risk-specific. Mitigation steps, although costly and time consuming, may still be preferable to going forward with the unmitigated risk.
  • Acceptance: The project manager and team decide to accept certain risks. They do not change the project plan to deal with a risk or identify any response strategy other than agreeing to address the risk if it occurs.

Using the Risk Assessment Tool

Users may input risk mitigation strategies under the "Allocation & Mitigation" section of the 'Risk Register' tab. The mitigation information does not feed into the risk assessment outputs, but it is important for a project team to systematically think through the broad range of risk mitigation strategies that could apply to a P3 project and to reconsider strategies through the project's life cycle to ensure all risks are mitigated effectively. Appendix C of this User Manual provides additional risk mitigation strategies based on experiences of previous P3 projects in the transportation sector.

 

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