Selecting a Response Plan Under Budget Constraints
Amnon Gonen · InTech eBooks · 2012
Usually project risk management plans deal with identifying, assessing and planning adequate responses to risks. The main problem is that there are many types of response plans, and we must be able to select the optimal one. The usual approach is to first handle the most “dangerous” risk (the risk with the maximum expected damage). However, handling this risk may also be very expensive and beyond the limitations of the allocated risk budget. The dilemma is how to select the right risks to be handled within a limited budget.