The complete set of risk mitigation plans may not be affordable. A tradeoff
analysis should be performed to prioritize the risk mitigation plans for
implementation.
5. Develop contingency plans for selected critical risks in the event
their impacts are realized.
Risk mitigation plans are developed and implemented as needed to proactively
reduce risks before they become problems. Despite best efforts, some risks may
be unavoidable and will become problems that impact the project. Contingency
plans can be developed for critical risks to describe the actions a project may take
to deal with the occurrence of this impact. The intent is to define a proactive plan
for handling the risk, either to reduce the risk (mitigation) or respond to the risk
(contingency), but in either event to manage the risk.
Some risk management literature may consider contingency plans a synonym or
subset of risk mitigation plans. These plans also may be addressed together as
risk-handling or risk action plans.