PMBOK® Guide: Plan Risk Responses Strategies for opportunities

The video starts with Risk Response Strategies for Opportunities.
When we talk about the risk, it is positive as well as negative. We follow the same risk management process for Opportunities; we record them in the risk register, just like we record Threats.
We look into how we decrease the probabilities of these threats, but in Opportunities, it is exactly the opposite, we explore how we can increase the possibilities of its occurrence.
How can we maximize the positive impact this Opportunity may bring on the project.
Risk Response Strategies are:
Escalate, Exploit, Share, Enhance & Accept
Escalate and Accept are common in both Threats & Opportunities.
Escalate: It is a great thing, but as a project manager it's beyond my influence area, and I hardly can do anything about it. This is something that has the potential of increasing project value or project impact, but beyond your influence area, so you inform it to top management.
Now the ownership is no more with the project team as you have escalated it.
Exploit: It is the exact opposite of Avoid. So its all about making the opportunity to realize, what can I do to make it a reality. If you see some benefit or Opportunity, definitely you want to exploit and make it happen. You must put all your attention to make it happen. That's what a response strategy which says Exploit, let's do it.
Share: Share is like I cannot do it alone, can I collaborate it with someone and then we can share the fruits of it. It's like, you are designing one part of a car. Another team is designing another part. Both the teams are working on some internet functionality, a common component that gives a great experience to your driver while driving.
When you can't Exploit it, you go for "Share."
Enhance: Looking at an Opportunity and you are doing some pro-active actions so that the probability of that becomes a reality. You can look at it as the opposite of mitigating. In case of threats mitigate we were making a reduction in Probabilities & reduction in the impact that was the response strategy. Here in the case of Enhance, the approach is: there is a probability of getting this thing done.
What can I do to make it happen that this becomes a reality?
ACCEPT: Not doing anything about it, just at the opportunity think if it happens, it's good if it doesn't happen, also good.
Active Acceptance: In the case of active acceptance you do have something in mind, if this will happen, we will use it here.
Passive Acceptance: In the case of passive acceptance, you are not doing anything about it; you are just going with your project schedule & the rest of your project management things keep ongoing.
Acknowledge this thing can happen; I am not doing anything about it.
Risk Response strategy is not a one-time decision. Don't think like I saw an opportunity if I ACCEPT I won't do anything about it throughout the project life cycle. It's not like that; these things may keep changing; it may happen at the beginning of the project. You look at the opportunity the impact was not that significant, but later on, you realize it, and then you may change the risk response strategy from one to another. From ACCEPT to EXPLOIT or vice versa.
The idea is these response strategies are not fixed; and are decided just at a given point of time.
For more similar videos, you can explore our complete online Project Management Professional (PMP)® course here:
www.izenbridge...
The Project Management Professional (PMP), PMBOK, The Agile Certified Practitioner (PMI-ACP), and The Professional in Business Analysis (PMI-PBA) is a registered mark of the Project Management Institute, Inc.
PMBOK is a registered mark of the Project Management Institute, Inc.
Materials in this video are based on the text, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Sixth Edition, Project Management Institute Inc., 2017.
The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.

[@rolandekangnigan9825]

thank you very much for a beautiful explanation video. i'm glad you touched on the difference between exploit and enhance, as well

[@izenbridge]

Thank you

[@quimquiles2132]

Great explanation. Thank you for the examples that help me a lot to remember the concepts. I'm trying to apply PMP and I learn a lot with your videos. Congratulations.

[@izenbridge]

Glad it was helpful! All the best. let us know in case you need any support.

[@Seebzters]

a subcontractor's opportunity doesn't necessarily mean that it is your opportunity. It could be a threat if impacts one of your constraints. as it's a threat, you can escalate to sponsor so you can appeal to releasing the management reserve. however, what if it's an opportunity? would you escalate to the sponsor or generate a risk response?

[@izenbridge]

If needed, when you wish to seek management support on exploiting something you can escalate. In general Project Manager should do all in his/her power to get the things resolved first.

[@dudelove007]

Sir, you have the same explanation/definition for Exploit and Enhance. Pls explain the difference between both.

[@izenbridge]

Exploit - Used for golden opportunities with high probability and potentially high positive impact, and the project cannot afford to miss. Here, a response is planned to remove uncertainty completely making it unavoidable.
Enhance - Here you enhance opportunities by increasing probability and/or impact. Of course, if the probability is increased to 100%, then this is effectively an exploit response.

[@vidhyanareshkumar4976]

Sir, How long would it take to finish PMP ?? Is there good opportunities for the people who finished PMP

[@izenbridge]

Thank you!! Vidhya for exploring our content. Please find the video on
"How much time does it take to prepare for the PMP exam?"
th-cam.com/video/XXYuHtD6yiM/w-d-xo.html
Yes there good opportunities for PMP Certified professionals. Refer to the following blog for more insight
"Why PMP® Is For Project Managers?"
www.izenbridge.com/blog/pmp_why_project_manager_certified/

[@gopalraorai2945]

hi i am gopal i have three diploma in mechanical engineering i have experience 15 years shall i can apply pmp certification, i am working as pipeline designer

[@izenbridge]

Thanks for exploring our content, Gopal. The pre-requisite for the PMP exam in case of the 3-year diploma is, you need to show 5 years of project management experience.
If you have worked on projects end to end and your role involve project management activities, you can definitely go for PMI-PMP. You can also check your eligibility for PMP here
www.izenbridge.com/pmp/eligibilitycalculator/