PMBOK, which is abbreviated as Project Management Body of Knowledge, is a common knowledge body/organization that deals with Project Management. In PMBOK, Risk Management is an essential topic discussed focusing on project risk characteristics and suitable mitigation measures. Any risk is an unforeseen happening that can impact the project advancement in a negative way on the outcome. These risks are usually assessed based on the probability and impact.
When we do not recognize all the required Inputs to measure the risk beforehand, it cannot be analyzed or managed proactively before the occurrence. In this instance, the response is called as workaround and taken from management reserve which is not directly under the control of project manager. To address the risk, there are 4 possible responses to a risk, deepening upon the severity of impact (Low, medium, high) on structural means and financial front. First type of action is to avoid, if the event is of both high probability and impact. Second type of action is to transfer if the event is of low probability and high impact. Third type of action is to mitigate if the event is of high probability and low impact. Fourth type of action is to accept if the event is of low probability and low impact.
?In 150 words, Based on this characterization, can you also map the type of general steps you might take for each of these types of risk categories? Do all achieved risks need a response?