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Example of accepting risk
Sometimes entities may accept a risk that would be so catastrophic that insuring against it is not feasible due to cost. In addition, any potential losses from a risk not covered by insurance or over the insured amount is an example of accepting risk.

How do you accept risk?
Reduce the risk by taking measures with the aim of eliminating its cause and thus reduce the risk. Transfer the risk to some other entity or person. Avoid the risk and therefore not to realize your intention. It is also possible to share the risk.

project management best practices?
Document project requirements.
Avoid estimating projects in a vacuum.
Use a project brief to get stakeholder buy-in.
Establish a clear project plan.
Mind your team's workload.
Clarify project roles and responsibilities.
Communicate early and often.
Monitor task progress.

Risk

1. Most houses are built with gates
2. All gates are expensive and colour black
3. A house with no gate is always robbed

Likelihood

1. 2
2. 4
3. 2

Impact

1. 4
2. 4
3. 1

Risk Level

1. 8
2. 16
3. 2

Response

1. Mitigate: identify the houses built with gate
2. Mitigate: expensive is a relative term. Get a list of the affordable gates.
3. Accept: monitor situation

The important benefits of risk management include:

1. Creates a safe and secure work environment for all staff and customers.
2. Increases the stability of business operations while also decreasing legal liability.
3. Provides protection from events that are detrimental to both the company and the environment.
4. Protects all involved people and assets from potential harm.
5. Helps establish the organization's insurance needs in order to save on unnecessary premiums.

In order to effectively manage risk it’s critical that you define what is (and isn’t) an “acceptable level of risk” (risk appetite) This, in itself, is not difficult to create and is something that a trusted third-party like Pivot Point Security can help you to develop in the context of a formal risk assessment process. Once you have defined your risk tolerance, you can then determine which risks are currently not “acceptable” and create a formal remediation plan to:

• Avoid**/resolve the risk (completely eliminate or forego risk)
• Mitigate** the risk (reduce the likelihood or impact of risk)
• Transfer the risk (assign or move the risk to a third-party via Cyber Liability Insurance)
• Accept the risk (acknowledge the risk and choose not to resolve, transfer or mitigate)

In project management, I have experienced many time taking the risk to ensure certain activity to move on. Ex. start a project with no funds into account because the project and budget ware already approved; travel at night out of the recommended time to attend to a project stakeholders meeting...

Every project comes with risk. The trick is to get ahead of it so you can formulate a plan for mitigating it. A risk assessment matrix enables you to identify all the things that could go wrong and calculate the potential damage. That makes it easy to prioritize issues and take action where it’s needed most to keep your project on course.

It is very important to consider all the risk factors when undertaking a project.

Deciding how to respond to a risk requires creative, resourceful thinking. There is no single "correct" way to respond to a risk.

One time I accepted risk was because it was not posing a huge risk to the project.

it was okay to accept this risk as it probably scored very low on the risk level

i think we can accept a risk if its impact is not a serious threat to a project, if it only affects one of the three important constraints

Due to a series of lockdowns to curb covid 19, we ended accepting that some activities that require field work in deep villages will not be done

assesing the likelihhod of the risk and its impact in the project will give us a matrix analysis

My Robotics team and I had to accept the risk of our robotics kit coming late to Sri Lanka from the USA and the risk of not having enough time to complete our project. There was nothing we could do to make the kit arrive earlier so we did some research online to find out what parts were included in the kit and did our preliminary designs with the parts that we had with us from the previous year's project.

@Paschal_007 Yes, this has been a risk lots of project teams have had to accept during the last year.

@MiyongKueth72 Thanks for posting these.

it is very important to identify the risks because it will help us to prepare well for the upcoming project risks.

Why do you believe that rain is is the only one barrier that could hinder attendance. There may have other factors as well! Did you surveyed the main factors that could explain potential absenteism ? If yes, how did you do that?

Economic risks, because of low circulation of money in the country with leads to few economic activities in a particular time

there were possibility of policy change over Saving groups on registration. this was due to the new reformation of policies. we accepted the risk that the Registered groups were to be registered again under new guidence. Extra efforts were needed to register groups again. the cost of registration were taken to the groups themselves.

Great responses

@alUG said in Module 3 Discussion: Accepting Risks:

@eltonjames ,thanks for sharing your experience with us.Its nice to know that your risk paid off.

This is very very true

Thank you. this is a good advice

Sometimes it is okay to accept risk, so that you implement a project if you are afraid of every risk progress will not be achieved.

i accepted the changes in amount of funding because i had no other means of raising the funds

@vagafufagu41 said in Module 3 Discussion: Accepting Risks:

One time I accepted a risk on a project was funding delay. I accepted it because the funds were already approved and will eventually be released.
Yes sometimes working with the US government we were greatly affected by government shutdowns. We had to have faith that eventually they would pay us what had been committed, although behind schedule. We paid our employees out of reserve funds.

Obviously, Accepting a risk in project management is difficult,but you may make it easy by doing confidential.

one time i accepted the risk when on a project of training women when there was sudden change in weather from dry to wet season. women turnup totally dropped and those who showed up came late.

It is okay to accept a risk when the likelihood, impact and risk level are low, and would not greatly affect the implementation of the project.

The risk I faced was the key resource person working on the project had to be away for a couple of weeks. I mitigated the risk by outsourcing someone equally competent during those weeks

Accepting a risk is acceptable if we can control multiple parameters that affect the risk, and that the benefits outweigh the risk involved.

It is acceptable to take a risk if there are multiple components that can be controlled and if the potential outcome outweighs the risk.

Agreed- low risk level is important.

Sometimes we are forced to take the risk due to outside forces that cannot be changed.

It is good to identify your risks in advance for better planning and allocation of resources. Some risks are not easily identified at the onset of the project. Therefore, the mitigation approaches to responding to a risk are highly recommended.

To accept a risk is when you are able to monitor that risk to come up with a response.

I accepted draught risk when I planted rice because I cannot avoid farming completely but response to the draught by means of irrigation

Once I had decided to accept when I prepare a mom's training project in training chicken breeding and egg production in masisi and suddenly the M23 war appeared and moving all the members involved on the other side of the border

In every project risk is inevitable. It is the response we give to the risk that matters in order to make the project successful.

We must not ignore on any risk! and Even if you accept a risk, you should still watch it closely.

Accepting risk might be necessary when the risk score (likelihood of occurring and impact) is low. If there is a high risk score, you should seek to avoid, transfer, or mitigate.

Creo que los riesgos se pueden mitigar haciendo una buena evaluación de riesgos del proyecto. También existen riesgos que no son críticos y pueden aceptarse hasta cierto punto, pero también existen algunos riesgos que pueden afectar desde el alcance del proyecto hasta el presupuesto.

I agree with you, it is important to evaluate the risk very well because that way we can decide what can and cannot be accepted.

It's true

All risk should be managed

Once a time i accepted a risk was with network issues on the service the provider was offering i accepted because the alternative meant i had to change the entire network which was not budgeted for . so i tried to manage it y constantly calling the service provider to fix it and really helped.(it worked)

One should be ready to take the risk and able to manage it successfully if one knows the basics to apply the same

Suppose a study requires that participants are given mobile phones for visit clinic reminder and in the course of the study you anticipate some of the participants may looses phones, you may choose to accept the risk and just monitor closely how they return to clinic appointment without a phone based reminder

Sometimes that happens, that the value of the project is a higher priority than the risk that must be accepted, knowing that it can directly affect the result of the project.

Once I accepted a risk, it was that I had to buy some materials with a specific supplier that sometimes had not fulfilled us on time or with the required quantity. I accepted it because it was the only supplier we had in the city and the other suppliers were from abroad, so we had evaluated the risks with these suppliers and we had serious risks of having to stop the project at some point due to lack of materials that would stop a whole process.

One time that I accepted a risk was to set another milestone that's exceed the plan. I accepted it because there's still some fund left, and there's a possibility to achieve higher outcome.

I have accepted a similar risk about educating youth on votes and values (not persons) to vote for. Being a pre-election year and due to the volume of youth we were empowering to drive policy change, we expect that eyes would be on us. It is however important if we want quality leaders so that's a risk I'm willing to accept. Our way is to educate virtually instead of physically so people feel safe enough to attend the sessions

This is always so tricky. For these type of vendors, starting the process way earlier than you need it always works. As time goes, I would start to look into building competency on my staff to create these things or having partnership conversations with this vendor so they feel more responsible to deliver on time

In project management we respond to the risks based on the severity of impact that the identified risk may cause to project. We had situation where we have accepted, we could not hire international experts to train local staff due to travel restrictions in place after COVID and the projects closure was only few months. There is no way that we can international consultants due to COVID 19 as well as the nearing of closure time.

It is good to accept a risk once you have identified it.

We had to accept a risk recently due to staffing shortages caused by the pandemic. The acceptance of this risk will go into the mitigate category in the coming months, hopefully, as the workforce and employment situation improves.

COVID has impacted workforce development, staffing, hiring all over the world. We are experiencing this at the local level. It must be very difficult when you are depending on international staffing for your project.

The recent Covid pandemic has caused quite a bit of risk with our programs. We have found that accepting the risk actually opened doors for funding that we did not anticipate. Our funders were very generous during this time and only our in-person programs suffered during the mandates. We were able to create a new program by accepting the risk.

It is admirable that as a business owner you were willing to accept this risk - because it would help the neighbors and community - Refreshing that your decision making was based on doing the right thing and not just profit margins!

When the risk is mild or it is below the risk level of 2 then it is more likely that that the risk will not likely have major impact to the project so under such instances risks can be accepted and monitored.

Risk management begins with acknowledgement that no matter the level of planning we put into our projects we have internal and external factors we cant control but might have different control of our projects. Take COVID 19 for instance and the impact it had on projects. Some tried to mitigate it by establishing work from home plans. Now we have all realized that work from home plans are cost effective and increase productivity for some

I think risks can be mitigated by doing a good risk assessment of the project. There are also risks that are not critical and can be accepted to some extent, but there are also some risks that can affect from project scope to budget

when facing a risk, I weigh the chances of making it or not. I dont blindly take the risks. Currently I am deciding whether to use my pocket money for the semester to open a Visa Card so that I may start freelancing online, its a risk worth taking because even if I fail to make any clients, my education won't be affected

One day I planned an agricultural program that didn't go according to plan.
I accept the cancellation of the agricultural program, because the people I work with have very little interest

One time that I accepted a risk was a RAN Modernization project for Network provider Company in my country which involve on-site telecom implementation in different communities.
I accepted it because the risk was inevitable as at when it was identified. This risk is as result of high level of unemployed youth this has led to community issue and unrest sometime.
Therefore, some amount of money was set aside from the beginning of the project to pacify the community youth before it goes out hand. And I also employ Community liaison Officer to stand in gap.

Please Note: You can only submit an assignment ONCE. You CANNOT re-submit an assignment once it is uploaded, so please make sure that you have selected the correct file for grading.

Every undertaking has its own anticipated risk. However, risks are meant to make you bold, resilient and innovative. They make you innovate new plans and ideas to do things in exceptionally in a new way from others.

After evaluating, assessing and accepting risks, we have to mitigate/prevent them for improvement of the individual process.
Now, risk communication is also important afterwards. This improves the overall process of the company/firm by helping the company prevent similar risks in the future also.

Good discussions !

low risk rate is acceptable but still needs to be monitored.

Political and communal violence/riots always interrupt our normal duty and we do always accepted it, because we don't have a means of response towards it.

My team and I accepted the risk of no longer renting a studio space when we realized the likelihood of us being together in an office anytime soon. This was a risk as we had to move out of the studio and did not know how easy it would be to find a similar space in the future. However, we felt it was a wise move as there was really no point holding onto an empty office.

Honestly, some risks cannot be avoided, transferred, or mitigated, in such a case, you just have to accept it. We put up a tender for renovation of TVET institutions, spelt out the requirements clearly, invited interested companies for site visitation and together we did all the necessary measurements. We mailed the requirements to them and requested for bids. In their tenders, we could not find the minimum standards in country, and the amount per organizational policy was too little for outsourcing. Do we take the person with the highest score even if they do not reach bench marks? We accepted to take them.

Thanks for this. For little clarity, how did you guys keep track of your work progress, or manage your ongoing workflow without an office?

One time that I accepted a risk was when Covid-19 spread among the country . I accepted it because it is an external factor.

what do you think about fondamental gestion project in administration?

what do you think about fondamental gestion project in administration?

That was a good decision to accept the risk

That was a good decision to accept the risk

GENIAL COURSE

GENIAL COURSE

One time, I accepted a risks to have a outside Women’s Gathering during one of the hottest days of the summer during a pandemic. Everyone had a beautiful time.

That was a good decision to accept the risk

That was a good decision to accept the risk

For me, it is acceptable to accept a risk when it is more costly for us to spend money to mitigate it than to accept it. Yes, risks of climate change, which leads to higher temperatures in the dry season with effects on the yields of agricultural products. I decided to accept these risks because after a benefit-cost analysis, I realised that it is more expensive for me to face this risk than to accept it.

It is okay to accept risks where the risk level is low because they will be unlikely to happen and the risk impact will be low therefore it probably will not affect the project significantly if it were to happen

As indicated in the risk assessment reading, it's pretty evident that it's okay to accept a risk with the risk doesn't put much in jeopardy. I also think that if it's tough to decide a response while initially assessing a risk, you can consider accepting it for the time being and scheduling time to review any progress on the risk along the way and then reassess it at that time.

I recently was building a project plan with a coworker. It was for a project that we began last year and will revamp this year. I'd asked if we should develop new goals, but my coworker thought it okay to repeat the same goals, I presume because we didn't meet a number of them. I think a risk of not revamping new goals is that we may miss key opportunities that arise this year and weren't present last year, simply due to new timing and climate. Another risk is that we don't implement lessons from our debrief of last year's project run at the forefront and end up repeating similar mistakes. However, the mistakes weren't so huge that the project would be unsuccessful and I don't know if new opportunities might arise, though I could maybe brainstorm a bit. Because of these factors, I ultimately am accepting the risk of not adding to last year's goals for this year's iteration of the project.

One time that I accepted a risk was when i was piloting a nutrition project in a rough rough county, I accepted it because it would not rain every day.

One time that I accepted a risk was when I had travelled to setup IT network infrastructure at a rural area in Zambia and I identified power cuts and load shedding as a risk that is common in the Sothern part of Africa. I accepted it because the control was not within my reach and that the likelihood of the occurrence was low and the impact to the project would have been low because some of the work in this project did not require electricity. This risk had a low impact and the likelihood was very low. The tasks that need power can be executed when the power returns should the power cuts occur.

One time I accepted a risk was during a project that required children to attend a training session, with children who could not walk to the session . I did it because all the children resided in the community, and the chances of it raining during the summer months were unlikely.

While I agree that you can generally accept a risk if the likelihood is low, I don't know that we can assume low likelihood equates to low impact. In the example on this page, election interference was assessed as low likelihood but fairly high impact if it did occur. I think another example of this is if the girls from the example don't attend the workshops despite the additional recruitment efforts making it a little less likely that they wouldn't come. I imagine this is because there are many different strategies we can use if we need to respond by using resources to mitigate or avoid complications with a risk, but if we happen to not employ the right ones, risks can still manifest and have noticeable impacts.

Thanks for sharing your thoughts

One time that I accepted a risk was when I was working on pouring concrete when rain was forecasted. I accepted it because the probability of the rains taking place was low.

Risks can never be controlled. they are caused by natural circumstances. For example, tropical equatorial areas, rains are almost the whole year. This becomes very difficult for children to attend schools.

As a training consultant the pandemic has imposed several risks for many projects as training design shifted to online platforms. While savings were had in terms of overheads( e.g., facility & meals )cost benefit analysis factors are still being determined where factors such as scheduling, monitoring and absenteeism have become onerous.

Yes, we figured out that our borehole drilling project project will be affected by rainfall season hence decided to just accept by drilling during rainy season

Certain time should be created before the election process go deep. A portion of the project resources should be mitigated .

I find not "ignoring" a risk as very substantial. Accepting risks as genius!