Project Risk Management: What is the difference between Enhance and Exploit for PMP Exam

Project Risk Management: What is the difference between Enhance and Exploit for PMP Exam

January 29, 2022 0 By managementproject

Project Risk Management: What is the difference between Enhance and Exploit for PMP Exam

 

The Different Types of Risk

 

In project risk management, according to different types of risk (positive or negative), the PMBOK® Guide recommends the following risk management strategies:

  • For negative risks:
    • Mitigate
    • Avoid
    • Transfer
    • Accept
    • Escalate
  • For positive risks (i.e. opportunities):
    • Enhance
    • Exploit
    • Share
    • Accept
    • Escalate

Out of the four risk management strategies for opportunities, “enhance” and “exploit” are always not thoroughly understood and may be considered very similar or even identical as they both would result in taking advantage of the opportunities. However, there are many reasons why they are separately identified as one of the risk management strategies.

 

The Difference between Enhance and Exploit

 

  • Enhance: taking measures/actions (e.g. changing the project plan or approach) to increase the probability of the occurrence of opportunities / increase the benefits from the opportunities
    • note that the opportunities may not realize in the end
    • may be considered as the opposite of “mitigation” in negative risk response strategy
  • Exploit: taking any possible actions to make sure the opportunities will realize
    • do everything to realize the opportunities, including adding budgets or carrying out dramatic actions
    • may be considered as the opposite of “avoid” in negative risk response strategy

Illustrated Example

 

A project Manager, James, aims to sit for the exam before the change of the exam syllabus as his employer has set up a scholarship for the study materials for the current version (the costs of exam prep books as well as mock exam question banks would be paid by his employer). In order to take advantage of the offer, James has formulated the following actions in the “Enhance” and “Exploit” categories:

  • Enhance Risk Management Strategy
    • Submit application as early as possible
    • Spare an extra hour of study time every day
    • Make use of an online exam prep course (instead of a classroom course/bootcamp) to allow him to study anywhere with his mobile phone
    • Attempt mock exams early in his preparation to understand his knowledge gap
  • Exploit Risk Management Strategy
    • Subscribe to an exam coach service to tailor a study plan with an experience tutor
    • Take leave from work till he has finished all the study and preparation
    • Use same day courier service to submit the audit document (if required for an audit)
    • Schedule and take the exam before the change of exam version (even if he has not finished his preparation)
    • Book a hotel room in the vicinity of the exam centre for the night before the exam day

As one can see, in order to carry out the Exploit Risk Management Strategy, a lot of extra money may need to be spent in order to ensure the opportunity can realize for sure.

 

Conclusion:

To distinguish between Enhance vs Exploit, remember that:

  • Enhance will increase the % of occurrence of the opportunity or to increase the benefits from the realization of the opportunities
  • Exploit will make the occurrence 100%