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Risk Avoidance

A risk response in which the team removes the threat or alters the plan so the project is not exposed to its effects.

Key Points

  • Eliminates the risk source or changes scope, approach, or schedule to avoid exposure.
  • Best used for high-impact threats when a feasible alternative exists.
  • Often requires change requests and sponsor or stakeholder approval.
  • Aims to drive the probability to zero or block any potential impact.

Example

A project faces regulatory uncertainty if hosting data in Country X. To avoid the threat, the team selects a compliant hosting region with clear regulations, removing the risky location from the plan.

PMP Example Question

During planning, a custom cryptography component is identified as technically uncertain and could cause major delays. Which action best represents risk avoidance?

  1. Replace the custom component with a certified commercial library and remove the custom build from scope.
  2. Purchase insurance to cover potential rework costs.
  3. Add additional testing and quality checks to reduce defects.
  4. Accept the risk and add schedule reserve.

Correct Answer: A — Avoid the risk by changing scope to remove the risky work

Explanation: Avoidance eliminates the threat by altering the plan so the project is no longer exposed, such as removing the risky custom development.

Project Management with AI: From Initiation to Closing

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Build the Sprint Reporting System, Not Another Prompt

AI Systems with Claude is our own course for Scrum Masters and Agile Project Managers, taught against one running project across eight teaching sections. You build five working systems and keep them: the sprint report machine, the retro intelligence system, the stakeholder comms engine, the backlog health monitor, and the risk and dependency tracker. Direct from HK School of Management, not on Udemy.

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