Four risk response strategies for threats include:
Avoid – risk avoidance can only be achieved if the cause of the risk is removed from the project. Then, the probability of the risk would be ZERO.
Transfer – transferring liability to a third party, which can be done through insurance, outsourcing, guarantees, etc.
Mitigate – risk mitigation is intended to reduce the probability and/or impact of a risk, if it does occur.
Accept – acceptance can be reactive, meaning that risks are recognized but a conscious decision is made not to do anything about them. It can also be active acceptance, which means that a contingency plan is in place in case a risk occurs.
Four risk response strategies for opportunities include:
Exploit – Exploiting an opportunity can be seized by removing any related uncertainty.
Share – Sharing means sharing ownership of an opportunity with another party who may be in a better position to take advantage of the opportunity. Sharing must be a win-win situation.
Enhance – Enhancement means increasing the probability and/or impact of opportunities.
Accept – Acceptance in the case of an opportunity means taking no action to take advantage of the opportunity before it occurred.