An agile thought leader provided an advanced outline of a paper on integrating risk and real options for an upcoming conference. A comment was made that traditional project management tries to "avoid" risks. Risk management has four options for "handling" a risk, with Avoidance being one:
- Control the risk - lower the probability of the risk event occurrence.
- Avoid - eliminate the opportunity for the risk to occur.
- Assume - acknowledge a future risk event and accept the potential consequences without efforts to control it.
- Transfer - reduce the risk exposure by reallocating the risk from one part of the system to another part.
The framework in which these "risk handling" options are available is guided by one of two concepts.
The DoD Risk Management Guide
Or the Software Engineering Institute Continuous Risk Management Guidebook:
Both provide clear and concise guidance on how to management a Risk Management program, the elements of that program, and the artifacts that are produced during the operation of the program.
So when something is mentioned about "risk management," looking at one or both of these framework may provide insight into how to conduct risk management in your project.