Assignment 5 Tony and his team identified some risks during the first month of t
ID: 3692675 • Letter: A
Question
Assignment 5 Tony and his team identified some risks during the first month of the Recreation and Wellness Intranet Project. However, all they did was document them in a list. They never ranked them or developed any response strategies. Since several problems have been occurring on the project, such as key team members leaving the company, users being uncooperative,and team members not providing good status information, Tony has decided to be more proactive in managing risks. He also wants to address positive as well as negative risks. 1. Create a risk register for the project, using Table 11-5 and the data below it as a guide.Identify six potential risks, including risks related to the problems described above. Include negative and positive risks.
Explanation / Answer
Six potential risks
1. Identify the objectives of the organization,
2. Determining the exposures to loss,
3. Measuring same exposures,
4. Check for the alternatives,
5. Implementing a solution
6. Monitoring the results.
Risk management Process includes several approaches:Risk management planning, Risk identification, Qualitative risk analysis, Quantitative risk analysis, Risk response planning, Risk monitoring and control
The primary objective of an organization is growth.Determine its strategy for managing various risks. Identification and measurement of risks are relatively straightforward concepts.
Businesses have several alternatives for the management of risk, including avoiding, assuming, reducing, or transferring the risks. Avoiding risks, or loss prevention, involves taking steps to prevent a loss from occurring, via such methods as employee safety training.
Rrisks simply means accepting the possibility that a loss may occur and being prepared to pay the consequences. Reducing risks, or loss reduction, involves taking steps to reduce the probability or the severity of a loss, for example by installing fire sprinklers.
Transferring risk refers to the practice of placing responsibility for a loss on another party via a contract. A final risk management tool is self retention of risks sometimes referred to as "self insurance." Companies that choose this option set up a special account or fund to be used in the event of a loss.
Combination of these risk management tools may be applied in the fifth step of the process, implementation. The final step, monitoring, involves a regular review of the company's risk management tools to determine if they have obtained the desired result or if they require modification
The risk identification process on a project is typically one of the strong difficulty and the related points are
Five strong points to face risk management
1. Senior management
many business initiatives, the success of a risk management programme depends on the active support of senior management.
2.Inclusive
Effective risk management programs do not rely on the work and resources of any single person or group within the organization.The best programs draw on the input and co operation of every part of the organization.
3.Transparent
Risk management programs work best and companies reap the greatest possible benefit from them when their goals, processes and results are shared with all the company’s stakeholders.
4.Holistic
The best risk management programs not only address all the risks to which modern corporations are susceptible, they also consider how these various
risks can affect the company’s stakeholders and operations.
5.Proactive
Effective risk management programs do not merely insure companies against downside risks, they also include proactive systems and processes to maximize the opportunities the opportunities presented by variable risks.
Different strategies for risk management are:
1.Avoidence
2.financial Hedging
3.Transfer
4.Diversification
5.Real Options
6.Control
7.Adaption
The objective of above words indicate the minimization of download risk and Exploitation of upside risk.
Risks means in the project management it is a bad news.However some risks are positive and some risks are negative.
Negative risks are unwanted and potentially can cause serious problems and derail the project, positive risks, on the other hand, are opportunities and are desired by both the Project Manager and the stakeholders, and may positively affect the project, such as increasing the ROI or finishing the project ahead of time.
Known negative risks have to be managed and accounted for in the risk management plan, this is the same for positive risks. However, positive risks are managed in order to take advantage of them and “tame them”.
The main programmer on the project quitting the job.
Lack of construction material because of political issues in case of a construction project.
Positive Risks
Receiving much more than the expected number of subscribers on the launch date of the service.
Finishing a part of the project before schedule.The resources are not scheduled to work on the project until much later.
Positive risks are risks that result in good things happening; sometimes called opportunities. A general definition of project risk is an uncertainty that can have a negative or positive effect on meeting project objectives. The goal of project risk management is to minimize 4 potential negative risks while maximizing potential positive risks