[happy^girl]

Dear PMs
can anyone explain the thin difference btw active acceptance of risk and risk mitigation. Active acceptance is when you accept the risk but create a plan how to deal with consequences. Mitigating a risk is to plan how to reduce either risk probability or impact. How consequence and impact that a risk may cause are distinguishable? arent they the same thing or perhaps there's another trick?
thanks in advance

[indijone804]

Accidents can happen suddenly without any signal. It's really a difficult task to control such accidents. But we can reduce the losses from such accident. With recent accident in the garment manufacturing company of Bangladesh it's a shame and we can say that they were running business without any precaution. I think fair lending risk assessment will help such conditions. It's a very very user friendly web site to use and understand.

[JPCote]

Mitigation you are actually doing something to reduce the impact / probability of occurrence. Active Acceptance, as per PMBOK, you would set a reserve but still do nothing to prevent it. E.g. taking defensive driving lessons is a mitigation strategy to avoid the risk and possibly give you the skill to reduce the damages should a situation occur. Buying insurance in case of an accident is active acceptance. You do nothing to prevent, but you are insured! No buying insurance nor taking defensive driving lessons is accepting the risk and deal with the consequences should it happen... That's my way to understand the difference. See page 304 of the PMBOK V4.

[Wren.A]

JPCote, on 13 December 2012 - 07:15 PM, said:

Mitigation you are actually doing something to reduce the impact / probability of occurrence. Active Acceptance, as per PMBOK, you would set a reserve but still do nothing to prevent it. E.g. taking defensive driving lessons is a mitigation strategy to avoid the risk and possibly give you the skill to reduce the damages should a situation occur. Buying insurance in case of an accident is active acceptance. You do nothing to prevent, but you are insured! No buying insurance nor taking defensive driving lessons is accepting the risk and deal with the consequences should it happen... That's my way to understand the difference. See page 304 of the PMBOK V4.

Actually, buying insurance would be "transferring risk", not mitigating. Having insurance doesn't effect the probability of the risk occurring.