Avoidance
Risk avoidance as a strategy removes the risk from the picture by avoiding it altogether, for instance, by finding an alternative action that replaces the risky action or having a fail-safe plan that will kick in if the risk occurs. Risk avoidance generally requires a high financial outlay, and companies cannot always afford both risk avoidance and new product development, so there will need to be some compromise. A typical example of risk avoidance is a data recovery site that mirrors your primary hardware site. In the case of failure, processing swaps over to the remote site. Another example is the “freeze” that banks apply to IT changes during the Christmas period, avoiding any change during peak usage.
Limitation or Control
Limitation of risk is a compromise between avoidance and acceptance; some actions are taken that will control the risk, should it occur. With risk limitation, the risk is expected to occur and there will be some impact. So, rather than having a primary and back-up site like the example above, there would only be one site with a daily backup which is kept off-site. In the case of failure the restore will take time, which will impact the project for a few hours
Risk Transfer
If you outsource some of your non-core business, you will recognise this mitigation type. The placing of non-core work with an outsourcing service provider is a form of risk transfer. While risk transfer is a good strategy to reduce complexity, it also removes the ability to control what has been outsourced. Your service provider’s value chain can become your weakest link if their operation is not as robust as it seemed at the time of outsourcing.
Recommended Further Reading
The following materials may assist you in order to get the most out of this course:
Course Contents
Section 1: Agile Project Management
Section 2: Using the Agile Manifesto to Deliver Change
Section 3: The 12 Agile Principles
Section 4: The Agile Fundamentals
Section 5: The Declaration of Interdependence
Section 6: Agile Development Frameworks
Section 7: Introduction to Scrum
Section 8: Scrum Projects
Section 9: Scrum Project Roles
Section 10: Meet the Scrum Team
Section 11: Building the Scrum Team
Section 12: Scrum in Projects, Programs & Portfolios
Section 13: How to Manage an Agile Project
Section 14: Leadership Styles
Section 15: The Agile Project Life-cycle
Section 16: Business Justification with Agile
Section 17: Calculating the Benefits With Agile
Section 18: Quality in Agile
Section 19: Acceptance Criteria and the Prioritised Product Backlog
Section 20: Quality Management in Scrum
Section 21: Change in Scrum
Section 22: Integrating Change in Scrum
Section 23: Managing Change in Scrum
Section 24: Risk in Scrum
Section 25: Risk Assessment Techniques
Section 26: Initiating an Agile Project
Section 27: Forming the Scrum Team
Section 28: Epics and Personas
Section 29: Creating the Prioritised Product Backlog
Section 30: Conduct Release Planning
Section 31: The Project Business Case
Section 32: Planning in Scrum
Section 33: Scrum Boards
Section 34: Sprint Planning
Section 35: User Stories
Section 36: User Stories and Tasks
Section 37: The Sprint Backlog
Section 38: Implementation of Scrum
Section 39: The Daily Scrum
Section 40: The Product Backlog
Section 41: Scrum Charts
Section 42: Review and Retrospective
Section 43: Scrum of Scrums
Section 44: Validating a Sprint
Section 45: Retrospective Sprint
Section 46: Releasing the Product
Section 47: Project Retrospective
Section 48: The Communication Plan
Section 49: Formal Business Sign-off
Section 50: Scaling Scrum
Section 51: Stakeholders
Section 52: Programs and Portfolios