Risk Contingency Plan Vs Mitigation Plan

Risk Contingency Plan Vs Mitigation Plan

Contingency plan: (Reactive)

The Project Management Institute defines contingency planning as, “involving defining action steps to be taken if an identified risk event should occur."

A contingency plan in project management is a defined, actionable plan that is to be enacted if an identified risk becomes a reality.

It is essentially a “Plan B”, to be put in place when things go differently than expected for a "Plan A".

The essential components of an effective risk contingency strategy are:

Make a list of risks
Weigh risks based on severity and likelihood
Identify important risks
Conduct a business impact analysis
Create contingency plans for the biggest risks
Get approval for contingency plans
Share your contingency plans
Monitor contingency plan

Example for contingency plan:

A brokerage company may have a backup power generator to ensure that trades can be executed in the event of a power failure, preventing possible financial loss.

Synchronise data with a second data centre and switch operations to the second data centre in the event of the first one going down.

Mitigation Plan: (Proactive)

Risk mitigation describes a process by which a project reduces its exposure to risk and works towards minimizing the likelihood of any issues arising during the project.

It involves a process that we’ll explore in a moment but essentially addresses the top risks to fully protect the project.

The essential components of an effective risk mitigation strategy are:

Identifying likely risks
Prioritizing risk
Preparation and responses
Monitoring
Updating the risk mitigation plan

The key difference between a contingency plan and a mitigation plan is that a contingency plan is reactive, while a mitigation plan is proactive.

Example for Mitigation Plan:

Airlines create risk mitigation plans to operate flights that are profitable and safe for all parties. They train pilots and check systems to limit internal risks and create guidelines that specify acceptable flying conditions.

Comments

Certified Enterprise Architect Professional (CEAP) - Module 5 - Architecture Frameworks

Architecture Frameworks: An Architecture Framework is a theoretical structure that has the purpose of developing, executing, and maintaining an Enterprise Architecture. Advantages of EA framework: Simplify Breaks down areas of the business process Organise business components and create and identify relationships between business Determine the scope Customization in the existing framework Disadvantages of EA framework: Need to follow process Provides only direction and not information It's based on goal and objective Need creativity and proactive thinking Zachman Framework: The Zachman Framework is a widely used model in Enterprise Architecture (EA) that provides a structured way to classify and organize an organization's information infrastructure by defining different perspectives from various stakeholders, allowing for a holistic view of the enterprise and facilitating alignment between business needs and technology solutions; essentially acting as a template to organize arc...

Daily Agile Scrum stand-up meeting guidelines

Followers of the Scrum method of project management will typically start their day with a " stand-up meeting ". In short, this is a quick daily meeting (30 minutes or less) where the participants share the answers to the three questions with each other: • What did I accomplish yesterday? • What will I do today? • What obstacles are impeding my progress? Some people are talkative and tend to wander off into Story Telling . Some people want to engage in Problem Solving immediately after hearing a problem. Meetings that take too long tend to have low energy and participants not directly related to a long discussion will tend to be distracted. These are the minimum number of questions that satisfy the goals of daily stand-ups. Other topics of discussion (e.g., design discussions, gossip, etc.) should be deferred until after the meeting. Here are few tips for running a smooth daily meeting: • Everyone should literally stand-up and no one should sit down ...

Empiricism (Scrum)

Empiricism asserts that knowledge comes from experience and making decisions based on what is observed. Pillars of Empiricism . Various practices exist to forecast progress, like burn-downs, burn-ups, or cumulative flows. While proven useful, these do not replace the importance of empiricism . In complex environments, what will happen is unknown. Only what has already happened may be used for forward-looking decision making. Each artifact contains a commitment to ensure it provides information that enhances transparency and focus against which progress can be measured: ● For the Product Backlog it is the Product Goal. ● For the Sprint Backlog it is the Sprint Goal. ● For the Increment it is the Definition of Done. These commitments exist to reinforce empiricism . The sum of the Increments is presented at the Sprint Review thus supporting empiricism .

High-Tech Yuga

Search This Blog