Mitigating Negative Risks

Mitigating risks is an effort to reduce the probability and/or impact of an identified risk in the project. Mitigation is done based on the logic before the risk happens. The cost and time to reduce or eliminate the risks is more cost effective than repairing the damage caused by the risk. The risk event may still happen, but hopefully the cost and impact of the risk will both be very low.

Mitigation plans can be created so that they are implemented should an identified risk cross a given threshold. For example, a manufacturing project may have a mitigation plan to reduce the number of units created per hour should the equipment's temperature cross a given threshold. The reduction is the number of units per hour that it may cost the project in time. In addition, the cost of extra labor to run the equipment longer because the machine is now operating at a slower pace may be attributed to the project. However, should the equipment fail, the project would have to replace the equipment and be delayed for weeks while awaiting repairs. Examples of mitigation include:

• Adding activities to the project to reduce the risk probability or impact

• Simplifying the processes within the project

• Completing more tests on the project work before implementation

• Developing prototypes, simulations, and limited releases

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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