Risk Avoidance

Definition

Risk avoidance (a.k.a., risk reduction) is the risk management technique of taking steps that help ensure that significant risks to the endeavor will not occur.

Dicussion

It is typically better to avoid a risk than to mitigate its impact after it occurs.

Objectives

The typical objectives of risk avoidance are to:

• Avoid the occurance of significant risks to the endeavor.

Preconditions

Risk avoidance can typically begin when the following preconditions hold:

• The endeavor is started.
• The associated teams are initially staffed.
• At least one of these teams is adequately trained in risk analysis.
• Some potential risks have been identified and analyzed.
• Actions and techniques to avoid the occurance of these risk have been identified.

Completion Criteria

Risk avoidance is typically complete when the following postconditions hold:

• The endeavor is completed so that no risks remain to be avoided.

Steps

Risk avoidance typically involves members of the endeavor’s teams performing the following steps in an iterative, incremental, parallel, timeboxed, and ongoing manner:

• Identify subset of risks to address.
• Perform risk avoidance actions identified during the risk analysis task.
• Document specific risk actions taken including associated information (e.g., schedule, responsible party, time, cost and other resources used).
• Iterate and repeat as necessary

Work Products

Risk avoidance typically results in the production of all or part of the following work products:

• None

Limitations

Risk avoidance typically has the following limitations:

• TBD

Guidelines

• Total risk avoidance is impossible and would be impractical if it were possible.
• Risk avoidance may involve:
  • Eliminating the root cause of the risk.
  • Eliminating the vulnerability of the asset or business process to the threat.
  • Lowering the probability that the risk will occur.
  • Transferring the risk to another party.