Sharing Risk: The Opportunity Response Strategy for Third-Party Ownership

PMBOK v8 Definition

Sharing is a risk response strategy for positive risks (opportunities) that involves transferring ownership of an opportunity to a third party so that it shares some of the benefit if the opportunity occurs. The key principle is selecting the new owner carefully, ensuring they are best able to capture the opportunity for the benefit of the project. Risk sharing often involves payment of a risk premium to the party taking on the opportunity.

This strategy applies to individual project risks within the Plan Risk Responses process (part of the Planning Process Group, Risk Knowledge Area).

Why It Matters for the Exam

The Share strategy is frequently tested because it is commonly confused with Transfer (which applies to threats) and with Enhance (which keeps ownership internal). PMI exam questions often present scenarios where a third party is involved to capture an opportunity, requiring you to distinguish Share from other opportunity response strategies. Expect situational questions where you must select the correct strategy based on who owns the risk after the response.

Key Points to Remember (for the exam)

• Definition: Transferring ownership of an opportunity to a third party who shares the benefit
• When to use: When the organization cannot capture the opportunity alone or a third party is better positioned
• Risk premium: Sharing often involves payment of a risk premium to the party taking on the opportunity
• Examples: Risk-sharing partnerships, teams, special-purpose companies, or joint ventures
• Common confusion: Share is for opportunities (positive risks); Transfer is for threats (negative risks)
• Selection criteria: Choose the new owner carefully so they are best able to capture the opportunity
• Overall project risk: For high positive overall project risk, ownership may be shared to reap associated benefits

Typical PMI Exam Example

A project team identifies a new technology that could reduce project costs by 20%. However, the organization lacks expertise to implement this technology. The project manager forms a joint venture with a specialized technology firm, agreeing to share the cost savings if the technology succeeds. This is an example of the Share risk response strategy.

PMI Exam Traps

• Trap: Confusing Share with Transfer

  • Reality: Share applies to opportunities (positive risks); Transfer applies to threats (negative risks). Both may involve a third party and a premium, but the risk type determines the correct strategy.

• Trap: Confusing Share with Enhance

  • Reality: Share transfers ownership to a third party; Enhance keeps ownership internally and increases probability and/or impact of the opportunity without transferring it.

• Trap: Confusing Share with Exploit

  • Reality: Exploit ensures the opportunity definitely happens (100% probability) by assigning the organization's own talented resources; Share involves a third party capturing the opportunity for shared benefit.

• Trap: Thinking Share does not involve payment

  • Reality: Risk sharing often involves payment of a risk premium to the party taking on the opportunity.

Important PMI Connections

Quick Review Questions

1. A project manager identifies an opportunity to use a vendor's proprietary software. The vendor will receive a percentage of the cost savings if the software is successful. Which risk response strategy is being used?

2. What is the key difference between Share and Enhance strategies for opportunities?

3. When is it appropriate to select a Share strategy over an Exploit strategy?

4. Does the Share strategy involve payment of a risk premium? If so, to whom?

5. A joint venture is formed between two companies to pursue a market opportunity. Which risk response strategy does this represent?

PMBOK v8 Reference

Section 11.5 - Plan Risk Responses (Risk Sharing strategy for opportunities)