10.3.2-Opportunity Management

10-3.2 Opportunity Management

Opportunity management refers to the application of risk response development strategies to the management of events that might have a positive impact on the project objectives.  For example, the drop in interest rates for a construction project might lead to lower overall costs, or unusually favorable weather might lead accelerated work or the drop in prices for supplies might enhance product features for a project.  To manage these positive risks, the opportunities have to be identified, assessed in terms of likelihood and impact, responses developed and contingencies established to take advantage of those opportunities when they occur.  Four common responses for opportunities are: Exploit Share, Enhance, and Accept.

Exploit –Eliminate the uncertainty associated with the opportunity to make sure it happens. For example, if there is the opportunity to take advantage of a new feature for a product such as the use of glass surfaces for the iphone instead of plastic, then revise the design and thereby enhance the features of the iphone.

Share– Allocating some of the ownership of an opportunity to another party who is best able to capture the opportunity for the benefit of the project. For example, you could partner with a civil organization to develop the public relations aspect and thereby improve the perception of the benefits of say a landfill project.

Enhancement– changing the size of the opportunity by identifying and maximizing key drivers of the positive risk. For example, choosing materials that are likely to decline in prices, or for a landfill project working with the local community to get them excited about the project and thus become mouthpieces for the project.

Acceptance– is used when the team chooses or is not capable of altering the opportunity. The opportunity is recognized without doing anything extra.