Top 5 Ways to Remove a Risk Entirely

The video discusses the strategy of removing risk entirely, which is considered the most powerful but least understood approach. It outlines five methods: overdesigning solutions, buying certainty with COTS components, finding alternative solutions, addressing root causes, and removing risky elements. Each method has its own challenges and benefits. The video emphasizes that while these strategies can remove specific risks, they cannot eliminate all risks from a project. The ultimate risk removal strategy is to not undertake the project at all, which ties into risk tolerance.

What is considered the ultimate strategy for managing risk?

• Ignoring the risk

• Removing the risk entirely

• Transferring risk to another party

• Reducing risk to an acceptable level

What does over-designing a solution typically involve?

• Minimizing the number of components

• Focusing on aesthetics over functionality

• Using the cheapest materials available

• Over-specifying the robustness of components

What is a key benefit of using commercial off-the-shelf (COTS) components?

• They are custom-designed for specific needs

• They are always the most cost-effective option

• They offer a high level of certainty and resilience

• They require extensive testing before use

How can finding an alternative solution help in risk management?

• It eliminates the need for stakeholder approval

• It may offer a higher degree of certainty

• It guarantees the best possible outcome

• It always reduces the project cost

Which technique is NOT mentioned as a root cause analysis method?

• SWOT analysis

• Fishbone analysis

• Pre-mortem analysis

• Failure Mode and Effect Analysis (FMEA)

What is the best way to handle an activity with an unacceptably high threat level?

• Delay the activity until risks are lower

• Delegate the activity to another team

• Remove the activity from the plan

• Increase the budget for the activity

What is the only way to remove all risks from a project?

• Implementing all five risk removal strategies

• Not doing the project at all

• Hiring a risk management consultant

• Using the latest technology