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Deflection of risk

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I was made aware of the term risk deflection just now. I'm not exactly sure what it means, but from what I understood it is about throwing the risk on someone else's shoulders (in other words, making the risk someone else's responsibility). Is this right? If not, then what do you mean by deflection of risk?
asked 5 years ago by anonymous

2 Answers

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Risk deflection is a strategy for risk avoidance/mitigation, and it consists of assigning risks to another party in a formal way. This other party will be responsible for handling these risks.

Risk deflection is not about "throwing" risks on someone's shoulder all of a sudden (in other words, scapegoating) because it happens through a contract. For example, let's say that one of the risks in a construction project is for the construction site to catch fire - by insuring the site against fire, you are effectively deflecting the risk to the insurance company (who has to pay for everything should the risk materializes).

As the answer below stated, it is the equivalent to risk transfer, which is defined here: http://www.projectmanagementquestions.com/1461/what-is-risk-transfer-in-project-management
answered 5 years ago by MaplePM (46,940 points)
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Risk deflection is similar to what the PMBOK Guide calls risk transfer.  We transfer all or part of risks to others by making the consequences their responsibility.  For example, the purchase of an insurance policy to protect against catastrophic loss or hiring a contractor to do the more risky parts of the work.

For an extreme example of how risk deflection or transfer can be used, you might want to read up on the history of the Hoover Dam.  Few today realize how many lives were lost building that structure while the corporation sponsoring the project shielded itself from all risk.
answered 5 years ago by sdcapmp (45,840 points)

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