Dinah YoungProject Manager / Software Asset Manager| Prince William CountySpringfield, Va, United States
There is a lot of examples of exploiting an opportunity, but I am not seeing many for enhancing. I am not clear on where to draw the line between the two. For example, I came across this question. In order to ensure that your team receives the incentive offered for completing the project early, you decide to fast track a number of activities that are on the critical path. This is an example of what risk response strategy? A. Enhance B. Exploit C. Share D. Accept
I was overthinking and was unsure if the answer was A or B. It was B obviously. But what would be an example of A? Saving Changes...
The main difference is that Exploit increases the probability of occurrence of the positive risk to 100% whereas Enhance either increases the probability somehat and/or the impact of the positive risk.
Effectively, Exploit is an extreme type of Enhance focused on guaranteeing the realization of the risk.
Dina,
Enhance is taken lightly and not guarantee the opportunity to be achieved, while exploit is more aggressively taken to do all it takes to make it happen. Saving Changes...
Dinah YoungProject Manager / Software Asset Manager| Prince William CountySpringfield, Va, United States
Thank you. I guess since you are fast tracking the above project, that is an aggressive approach, therefore exploiting. Saving Changes...
Abdool JamalDeputy Commissioner Department of Information Technology| City of Yonkers. NYYonkers, Ny, United States
An example of enhancing risk is to take advantage of maximizing incentive for completing a project ahead of schedule. For example, if you were awarded an incentive for every day a project is delivered ahead of schedule that maximize benefits up to 30 days, you may want to spend extra on overtime pay to take advantage of the full 30 days incentive payment.
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1 reply by Dinah Young
Feb 05, 2018 3:07 PM
Dinah Young
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But isn't that exploiting the risk?
Saving Changes...
Dinah YoungProject Manager / Software Asset Manager| Prince William CountySpringfield, Va, United States
Feb 05, 2018 2:55 PM
Replying to Abdool Jamal
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An example of enhancing risk is to take advantage of maximizing incentive for completing a project ahead of schedule. For example, if you were awarded an incentive for every day a project is delivered ahead of schedule that maximize benefits up to 30 days, you may want to spend extra on overtime pay to take advantage of the full 30 days incentive payment.
But isn't that exploiting the risk?
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1 reply by Abdool Jamal
Feb 05, 2018 3:40 PM
Abdool Jamal
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I see what you are saying, but the way I see it, if you crashing the project you are adding cost hence reducing your return, but you are getting a return on your investment. BUT, your view seem right:)
Saving Changes...
Abdool JamalDeputy Commissioner Department of Information Technology| City of Yonkers. NYYonkers, Ny, United States
Feb 05, 2018 3:07 PM
Replying to Dinah Young
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But isn't that exploiting the risk?
I see what you are saying, but the way I see it, if you crashing the project you are adding cost hence reducing your return, but you are getting a return on your investment. BUT, your view seem right:) Saving Changes...
Dinah, when I was rolling out 5000 desktops (hardware and software) back in 1999 for a major Retail corporation, I had the opportunity to get huge volume discounts if I played the right cards.
There was a promo for 10% off the standard volume licensing discount for that month. Something that was only marketed in the US, and we were an Australia company, so although we would qualify, it wasn't well known. So if I had signed the deal, that would have been an example of exploiting the opportunity, because it was a 100% sure deal to get a further 10% off the standard volume pricing.
But I didn't sign off (or rather I discouraged senior management to sign off).
What I did instead was play a little with the vendor. I communicated with the software vendor that we were about to roll out a huge upgrade of their product, but we were also considering their competitor who was offering a very competitive rate compared to theirs, in fact a better rate. We would like to stay with them I said, but since we were basically starting with new hardware and OS, starting with a clean slate for their app was also on the table. So this communication went on for a week or two, while the other 10% volume discount from the existing vendor was about to expire. It was a risk I was playing, but I felt confident we could twist the vendor's arm and get a further discount from the existing vendor, but there was no guarantee. So this was be an example of enhancing the opportunity. As it turned out, we got 15% off, stayed with the vendor, and the positive risk was actualized by enhancing the opportunity.
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1 reply by Dinah Young
Feb 06, 2018 7:06 AM
Dinah Young
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Thank you so much for this example. Makes sense to me.
Dinah YoungProject Manager / Software Asset Manager| Prince William CountySpringfield, Va, United States
Feb 05, 2018 10:15 PM
Replying to Sante Delle-Vergini, PhD
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Dinah, when I was rolling out 5000 desktops (hardware and software) back in 1999 for a major Retail corporation, I had the opportunity to get huge volume discounts if I played the right cards.
There was a promo for 10% off the standard volume licensing discount for that month. Something that was only marketed in the US, and we were an Australia company, so although we would qualify, it wasn't well known. So if I had signed the deal, that would have been an example of exploiting the opportunity, because it was a 100% sure deal to get a further 10% off the standard volume pricing.
But I didn't sign off (or rather I discouraged senior management to sign off).
What I did instead was play a little with the vendor. I communicated with the software vendor that we were about to roll out a huge upgrade of their product, but we were also considering their competitor who was offering a very competitive rate compared to theirs, in fact a better rate. We would like to stay with them I said, but since we were basically starting with new hardware and OS, starting with a clean slate for their app was also on the table. So this communication went on for a week or two, while the other 10% volume discount from the existing vendor was about to expire. It was a risk I was playing, but I felt confident we could twist the vendor's arm and get a further discount from the existing vendor, but there was no guarantee. So this was be an example of enhancing the opportunity. As it turned out, we got 15% off, stayed with the vendor, and the positive risk was actualized by enhancing the opportunity.
Thank you so much for this example. Makes sense to me. Saving Changes...
