Differentiating Workaround, Contingency and Fallback Plans in the Risk Acceptance

In this podcast, Ricardo talks about workaround, contingency and fallback plans - risk's responses. He explains each type of response and gives examples of use of these responses.

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Episode transcript

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Hello everybody welcome to the five minutes of PM. Yes. Today like to discuss with you the answers, the responses that occur. We should give that we must give. When we accept a risk, as you know, we have basically four different for the tracts in our projects, we can accept, then we can avoid them or we can transfer them to third-part by an insurance or in the contract agreement.

It's a kind of sharing. And also I can mitigate so avoid, accept, mitigate, and transfer. Now what I'd like to discuss only the Sept part. So when we are sapped Risk we are accepting the consequences of a Risk. So all the Workaround, the Contingency and the Fallback Plans DIA or related to this, they are very similar because the time the three of them, they intend to reduce the damage to reduce the impact of a septum that risk.

But yeah, they have different routes, different reasons of being. So let me discuss the first one. The Workaround what is a Workaround a Workaround is one of the planet response to a Risk. So you don't think about the Risk. You are not doing anything. When the Risk happens and becomes a problem or an issue, then you decide quickly what you should do. So let's suppose that you are in your very old car and you have a hanger made by Wars transporting one of your suits and den the engine, just stop.

And you see that the wire has broken in your car. So what do you do? You quickly pick up the hanger, destroy the hanger, transforming it in the plane where and replace is quickly. The war let's suppose that you can do that just to put the car in movement and transport it to a safer place. What do you did? You did a Workaround. This is what you did. No. The second part is the Contingency.

What does the Contingency? He is when you have money or time or people, or keep month's or resources that you put aside, like a reserve to protect you against the risks. So let imagine game at a team game like soccer, for example. So we have 11 players on the field playing and we have five players on the reserve.

If someone has a problem, got sick or got hurt, then what we can do. We can use this Contingency to solve our problems, to give us the ability to continue doing the project than in this case. The project is the game. OK. And the third one is the Fallback plan. What is the Fallback plan? He is winning. Do you plan before for the issue? So we can you imagine, okay.

That the Risk can occur and then you decide to create a plan before to avoid the real damage off this Risk. So imagine a fire brigade, a fire group in your company. What do you, you put them with an especial batch, you train them, you prepare them, do tests. You do.

If equation pasts, you do whatever you need before any kind of incident. And this, you are in some way mitigating the impact, but the Fallback plan, we will all be used. If the Risk happens. So I have some one that is working in, he said the task or Harris, that mask, and the had not thinking about moving on to save people, they're working the system, the lawyer, but when something is wrong regarding far happens, the start, their new role is to help people to evacuate.

Luckily, the building in a very safe way. So this is a Fallback plan. And this street, they can be used in a way conjunction depends on the Risk or separately. What do I need to understand? This? Is that the Workaround? Does it have any Plans the Fallback is there a plan you pretend, you know? Yes. Before the Contingency you use reserves to protect You most of the cases, the, or not something like black and white, there's some gray areas between the street concepts.

Most of the time we can use Contingency money time and Fallback plan, for example, to answer a risk. So I create a Fallback Plans and I add some additional time to that. So I'm using contingency and fallback plans to solve the problem. So this three are basically to insert the risks that I accept for auto risks. I will prepare other approaches, but for this ones, most of the approaches will be one of the three of them.

And if I don't do anything for sure, at the last minute, you we'll do some kind of Workaround. I hope you enjoyed this podcast. See you next week with another five minutes before the podcast.

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Differentiating Workaround, Contingency and Fallback Plans in the Risk Acceptance

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