Risk Escalation is a risk response strategy that involves transferring the ownership of the risk to a relevant party in the organization because the risk is outside of scope or the team does not have sufficient authority to address it.
It ensures that risks are addressed at the appropriate level of the organization, allowing for effective decision-making, allocation of resources, and application of authority beyond the project team’s control.
Key Characteristics
- Authority-Based Transfer – Used when resolution requires higher-level decision-making
- Outside Project Scope – Applies to risks that exceed the project’s boundaries or influence
- Formal Ownership Handoff – Requires documentation and communication of transfer
- Maintains Visibility – The project team tracks the status of the escalated risk
Example Scenarios
- Escalating a legal compliance risk to the organization’s legal department
- Transferring a strategic risk to a program manager or executive sponsor
- Handing off a policy-related risk to a governance board for resolution
Role in Governance and Risk Management
- Ensures Proper Handling – Routes risks to those with the authority and context to act
- Supports Transparency – Clearly communicates boundaries of project control
- Maintains Project Focus – Prevents team distraction from risks beyond their scope
- Aligns With Organizational Structure – Integrates project risk with enterprise risk processes
See also: Risk Acceptance, Risk Mitigation, Risk Sharing, Risk Transference, Risk Owner.