Comparative Review on the Tools and Techniques for Assessment and Selection of the Project Risk Response Actions (RRA)

Comparative Review on the Tools and Techniques for Assessment and Selection of the Project Risk Response Actions (RRA)

Mohammad Ali Hatefi (Research Institute of Petroleum Industry, Iran) and Seyed Mohammad Seyedhoseini (University of Science and Technology, Iran)
DOI: 10.4018/jitpm.2012070105
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Abstract

Project risk management is the process of risk identification, analysis, and response. Risk response includes assessment and selection of the efficient Risk Response Actions (RRA) in order to reduce/enhance the likelihood of the occurrence of threats/opportunities and/or the magnitude of threats/opportunities impact. There is wide agreement that development of RRA plans is an important phase of project risk management, while there are few widely accepted processes, models or tools to support the proper selection of RRAs. The present paper reviews and compares the efforts, which have been made to assess and select RRAs and address the mentioned deficiency found in the published literature. The investigations provide an insight into the need to provide the risk analysts with effective tools and techniques for assessing and selecting RRAs in the area of project risk management.
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Rra Identification And Structuring

The RRA strategies for threats can be categorized into four different groups: avoidance, transfer, mitigation, and acceptance (PMI, 2004; Tan et al., 2008). The corresponding strategies for opportunities are exploitation, sharing, enhancement, and ignoring (Hillson, 1999). Also, according to Chapman and Ward (2003), there are nine types of generic RRAs for threats including modify objectives, avoid the risk, influence risk probability, modify risk impacts, develop contingency plans, keep options open, monitor the risk, accept the risk, and remain unaware. Additionally, it is useful to consider the timing of RRAs rather than being concerned too much about the type of RRA, which is whether RRA is to be implemented before (proactive) or after (reactive) the risk occurrence.

There are some general techniques, which could be used in RRA identification such as brainstorming, interviewing, checklists, Delphi technique, Cause and effect diagram, etc (Royer, 2000). Some researchers have proposed specific methods for identification and structuring RRAs in the project context.

Synergistic Contingency Evaluation and Review Technique (SCERT) Approach

One of the earliest efforts was a methodology developed by Chapman (1979) named SCERT, which provides a foundation for correlating risks and activities from the project WBS (Work Breakdown Structure). A conventional SCERT approach considers each activity individually and identifies risks and RRAs associated with that activity.

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