Risk Response Planning
Choose actions that reduce exposure.
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Plan responses to my top risks. Risks with probability and impact: [TOP_RISKS]. Budget and time available for risk work: [RISK_BUDGET]. Team capacity: [CAPACITY]. For each risk provide: the four response options (avoid, reduce, transfer, accept) with a concrete example of each, the recommended option, why, cost and effort, expected reduction in probability or impact, residual risk score, a trigger for the contingency plan, and the owner. Compute expected monetary value where I give costs: probability x impact cost, showing arithmetic, and compare the cost of the response with the exposure removed. Return a table and a prioritized action list for the next 30 days. Add a contingency reserve calculation (sum of expected values of accepted risks as a guide, noting its limits), a plan for reporting to the sponsor, and warnings about response actions that create new risks (secondary risks). Use only my data and label estimates. For each risk give a single recommended response in one sentence, the action's cost and duration, and the residual score after the action. If the response costs more than the exposure, say so and recommend acceptance with monitoring.
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Risk R3: supplier delivers sensors late. Probability 3, impact 5, score 15. Options: avoid (use stock sensors, 4,000 extra); reduce (order two weeks earlier, free); transfer (penalty clause, needs a lawyer [VERIFY]); accept. Recommended: reduce. Effort 2 hours; residual probability 2, impact 5, score 10. Expected monetary value: probability 40 percent x impact 30,000 = 12,000. Cost of response 0 versus exposure 12,000 removed partly; after response 25 percent x 30,000 = 7,500. Trigger: no ship date by 1 Oct. Secondary risk: earlier payment reduces cash by 8,000 for two weeks. Contingency reserve guide: sum of accepted risk EMVs 7,500 plus others. Owner: Marta; review weekly.
Illustrative only, made-up data. Your results will differ and must be reviewed.