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PMP lesson · Risk · Risk management · lesson 3 of 3 · about 9 minutes

Risk responses: threats, opportunities and escalation

All approaches (predictive, agile, hybrid)Free preview
Goal: After this lesson you can name the right response strategy from a short description, and explain contingent responses, workarounds, residual and secondary risks.

1The situation

Five risks, five different answers

The robot cell risk register now has a prioritised list. Each risk needs a strategy.

For the new gripper design, the team could simply use the proven one. For the price of servo motors, a fixed-price contract could move the problem to the supplier. For the vision system, an early pilot test could reduce the chance of failure. And one risk, a company-wide platform decision, is not yours to decide at all.

Each of these is a different response strategy, and the exam expects you to recognise them from a single sentence.

2Five answers to every risk

For threats and for opportunities there are five strategies each. Learn them in pairs:

ThreatOpposite for opportunityShared idea
AvoidExploitMake it impossible / make it certain
MitigateEnhanceReduce / increase probability or impact
TransferShareGive to a third party better placed
AcceptAcceptDo nothing now (or keep a reserve)
EscalateEscalateOutside the project's authority → right owner
Key words: “eliminate”, “change the plan” → avoid · “reduce” → mitigate · “contract, insurance” → transfer · “make sure it happens” → exploit · “outside the PM's authority” → escalate.

3All the strategies in one table

Threats (negative)What it doesRobot cell example
EscalateOutside the PM's authority or the project's scope → hand to the right ownerCorporate decision on a new robot platform standard
AvoidChange the plan so the threat cannot happenUse the proven gripper instead of the new design
TransferMove the impact to a third party (usually at a cost)Fixed-price contract, insurance, warranty
MitigateReduce the probability or impactEarly pilot test of the vision system
AcceptDo nothing now (passive) or keep a reserve (active)Small risks on the watch list; contingency reserve
Opportunities (positive)What it doesRobot cell example
EscalateOpportunity bigger than the project → hand to the right ownerOffering the same cell to another plant
ExploitMake sure the opportunity definitely happensLock in the supplier who can deliver early
ShareGive it to a partner better able to capture itJoint venture with a vision specialist
EnhanceIncrease its probability or impactAdd a second shift to finish earlier
AcceptTake it if it comes, no active effortLower steel prices next quarter
Five strategies for threats, five for opportunities. Escalate and accept appear in both lists.

4How it looks on the exam

Exam-style question 1. A team identifies that a new, untested welding process could cause significant quality problems. The project manager decides to use the organisation's established welding process instead, which eliminates the threat completely while adding a small cost. Which risk response strategy is being used?
A. Mitigate
B. Avoid
C. Transfer
D. Accept
Show the answer and the decode
Answer: B.
In simple English
The team changes the plan so the risky process is not used at all.
What is the question really asking?
The name of the strategy.
Key words / trigger
“eliminates the threat completely”
PMP logic
Changing the plan so the threat cannot occur is avoidance.
Why the wrong answer looks attractive
Mitigate sounds close, but mitigate only reduces the risk; here it is eliminated.

5Remember this

Your memory card

  • Threats: escalate, avoid, transfer, mitigate, accept
  • Opportunities: escalate, exploit, share, enhance, accept
  • Gone = avoid · moved = transfer · smaller = mitigate · certain = exploit · not ours = escalate
  • Planned + trigger → contingent response · unplanned → workaround · watch residual and secondary risks
The full lesson in the PMCLEAR app also has:
  • the rest of the lesson (Escalate: the newest strategy, After the response)
  • a worked example
  • the common traps (wrong vs right)
  • 2 exam-style questions with the decode
  • a 3-question quick check
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