Questions On The Group Members

The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!

Identify a minimum of 10 project risks and when each will occur in the project life cycle, and then determine their impact and probability of occurrence.

For example, in the building alterations, the tasks and the cost could be outlined with a quantitative modeling method. As well as a qualitative method, that includes a matrix, which will assist in developing risk responses that will be effective in mitigating possible risk. When a part was needed for a project deciding if it would be more economical to purchase or make the part. When presented with numerical data with cost, life cycle, and maintenance cost for up keep on two or more products that achieve the same goal. A risk management plan could be used to help access and handle project related risks. As for the risk tree, it could be used to help the project team decide on what the best option is for a task by giving a visual representation of the if then relationships in terms of

Risk Management. Risk Management must be a continuous activity throughout our project in order to prevent risks becoming issues. Thus, “risks” will be a topic at every meeting during project implementation.

Identifying risks will involve the entire project team and will include an evaluation of all factors including the project management plan. Careful consideration to the project deliverables will be given when analyzing the risks. Analysis of possible risks have been prioritized by calculating the risk numerically from 1-10, from less likely to likely to occur and minor impact to severe impact to project success, respectively. A numerical rating is applied to the values of occurrence, outcome, and detection and then calculated to a risk priority number (RPN) to assess the risk to the project.

The inputs for this risk management process is quite simple, based on our textbook, it only needs the risk management plan and the risk register for applying the risk respond planning process (PMI, 2013, p. 342). Since identifying risk responsibilities is a crucial section within planning the risk responds; and the risk thresholds can help to identify specific risk responses of project risks, the Risk management plan is therefore the crucial element for the planning of risk response process. Moreover, the updated Risk register can provide required risks’ information for developing risk responses, so it becomes another main input for risk response planning process (PMI, 2013, p. 343).

Risk avoidance follows each step carefully to allow for the mitigation and the possibility of more risks from occurring, this can also lead to other theoretical risks as the discussion continues to progress. By reviewing the scope of the project and getting rid of any unnecessary activities and focusing on the basic needs of the project first just in case one finds risks that are highly controllable, then the plans should also focused on reducing risks and staying ahead of the issue being proactive rather than reactive. The reactive type of risks and issues can cause further delays and damage the budget as well.

Probability is a number greater than zero and less than one. By using risk impact we assessed the probabilities and effects of the cost risk and then prioritized these risks regarding to their rating scale and importance. A high risk probability meant a high cost impact. In addition, multiplying probability by impact helped us to measure the exposure rate which represented the overall threat of the cost risk. We generally gave a great attention to deal first with risks that have high rates, using the probability and impact matrix as a reference during the entire project development course.

The procedure adopted for risk management in this project will ensure that project team and sponsors are able to effectively identify, analyse, manage, and minimise the impact of risk throughout the lifetime of the project.

Risk mitigation is a critical function of every project manager. A well-developed risk management process “attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented” (Gray & Larson, 2006, p. 1). Risk mitigation begins with project planning. Based on previous experiences, lessons learned, schedule and budget constraints of the assigned project, the project team can identify all the risks, analyze each risk in terms of the severity of the impact, the likelihood of the occurrence, and the degree to which the risk can be controlled. Although a direct relationship between the amount of risk in a project and the opportunity for increased rewards exists, successful businesses take every

During the integration phase of any competently designed project management program, the effective evaluation of potential risks is a critical component for managers and other project leaders tasked with supervisory role. The sheer number of unforeseen circumstances which can arise during the course of a business project is daunting indeed, but proper project planning requires the anticipation and neutralization of various risks to assure that a goals are met without external disruption. According to the authors of Integrated Project Management, a recognized authority on the subject of risk management, "every project plan approaches work structure and tasks in terms of overcoming uncertainty and barriers to project completion," and this universal approach to risk management is based on the tenet that "risk is inherent in a project simply because projects are usually new and different from past work and because there is a level of uncertainty and risk involved in every aspect of the project" (Barkley, 2006). The fact remains that innovative and enterprising ideas typically result in experimental projects involving untested techniques, and the innate uncertainty of these business projects creates a litany of risk factors. Managers and project leaders who are capable of predicting risks and adjusting to them, rather than simply reacting when risks are manifested, are those who routinely encounter the most consistent success in the world of business (Raz, Shenhar & Dvir,

In Agile environments, the project team shares the responsibility for identifying risks that might impact a sprint, project or the course of development.

Poor risk identification lead to poor resources allocation. Resources will have to be shared with other projects and some resources will be asked to multitask and perform tasks that they not qualify for. All these factors delays the planning of the project

Advancing from level 2 to level 3 requires using a risk register. 'The Risk Register is a tool to assist Project Managers in identifying likely sources of risk and the impact they may have on achieving objective. ' (Government office from the North West,2008). The first step is a brainstorm session to identify risk that may affect the project. It is important that the risks are clearly defined so that the risk is understood clearly and can be tackled. Secondly, consequence and probability of risks need to be rated (e.g. 1-5) and define each rating by their impact or likelihood. Finally, multiply the ratings of consequence and impact, rank the risks from highest severity to lowest severity. (Government office from the North West,2008). Every risks should be assigned to a risk owner which is responsible for managing the risk, a risk response to minimise both the likelihood and impact of the risk and a target completion date for the mitigation. Regular risk reviews need to be done because risks might emerge or become no longer relevant constantly. However, the impact

For all the risks identified, one of the following five risk mitigation strategies will be used. The strategy used depends on the overall risk rating and the risk management decision made by the project team.