Avoidance

Definition

Avoidance is a risk management strategy aimed at eliminating potential threats or risks to a project by changing the project plan or scope. This approach is particularly useful when the risk has high impact and likelihood, allowing teams to sidestep issues before they can affect project success. Avoidance can include actions such as altering project objectives, adopting different processes, or even deciding not to pursue a project altogether.

5 Must Know Facts For Your Next Test

1. Avoidance is best used when risks have a high impact and likelihood, making it a proactive approach to risk management.
2. Choosing avoidance often means making significant changes to project scope or objectives, which can require stakeholder approval.
3. In some cases, avoidance might involve not pursuing certain opportunities altogether if they present excessive risk.
4. While avoidance can eliminate risks, it may also limit project options and flexibility, necessitating careful consideration of alternatives.
5. Implementing avoidance strategies typically involves upfront planning and thorough analysis to ensure that the potential benefits outweigh the costs.

Review Questions

• How does avoidance differ from other risk response strategies like mitigation or acceptance?
  • Avoidance differs from other risk response strategies in that it seeks to eliminate risks entirely rather than just reducing their impact or accepting them. While mitigation focuses on lowering the probability and consequences of risks through proactive measures, avoidance completely changes the project scope or plan to bypass the risk altogether. Acceptance, on the other hand, involves acknowledging the risk without taking action to prevent it. Understanding these differences helps project managers choose the most appropriate strategy based on the specific context of each risk.
• Discuss a scenario where avoidance would be a preferred strategy over mitigation.
  • A scenario where avoidance would be preferred over mitigation could involve a major software development project facing potential legal issues related to copyright infringement. Instead of attempting to mitigate this risk through legal reviews and modifications, the project team may decide to avoid it altogether by choosing a different software solution that is fully compliant with copyright laws. This approach eliminates the risk of legal repercussions entirely and ensures that the project remains on track without additional complications.
• Evaluate the implications of consistently using avoidance as a risk response strategy in project management.
  • Consistently using avoidance as a risk response strategy can lead to an overly cautious approach in project management that may limit innovation and opportunities for growth. While it effectively eliminates specific high-impact risks, it may also prevent teams from pursuing valuable projects that carry some inherent risk. Moreover, frequent reliance on avoidance might create a culture of fear regarding risks within an organization, discouraging calculated risk-taking and stifling creativity. Therefore, while avoidance is an important tool, it should be balanced with other strategies to foster a healthy risk culture.

Related terms

Risk Mitigation: Risk mitigation involves taking steps to reduce the probability and impact of risks, focusing on minimizing adverse effects rather than avoiding them altogether.

Contingency Planning: Contingency planning refers to developing alternative plans or strategies to be implemented if risks materialize, ensuring preparedness for potential issues.

Risk Assessment: Risk assessment is the process of identifying, analyzing, and evaluating risks that may impact a project, forming the foundation for effective risk management strategies.