Risk avoidance

From PEaM

PMI	Risk avoidance [PMI Technique] is a risk response planning technique for a threat that creates changes to the project management plan that are meant to either eliminate the risk or to protect the project objectives from its impact.[1]

AACEI	Risk avoidance is a risk response strategy that eliminates the threat or opportunity of a specific risk event, usually by eliminating its potential cause.[2][3]

An example of risk avoidance would be not buying a property or business in order to not take on the liability that comes with it. Avoidance may seem the answer to all risks, but avoiding risks also means losing out on the potential gain that accepting (retaining) the risk may have allowed. Not entering a business to avoid the risk of loss also avoids the possibility of earning the profits.

References

1. ↑ Project Management Institute (2008). A Guide to The Project Management Body of Knowledge, 4th, Project Management Institute.
2. ↑ Oregon Department of Human Services – PMO Glossary
3. ↑ Association for the Advancement of Cost Engineering International [AACEI] (2007). Cost Engineering Terminology, 10S-90, Association for the Advancement of Cost Engineering International.

This article contains text from the Project Management Institute PM Body of Knowledge which is copyright all rights reserved by Project Management Institute, Inc. (PMI). Project Management Body of Knowledge is a registered trademark of PMI

This article contains text from the Association for the Advancement of Cost Engineering website which is copyright all rights reserved by Association for the Advancement of Cost Engineering International (AACEI).