Reflection andDiscussion Forum Week 11
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Chapter 13 is all about Project Complexity and Risk. Project complexity is a measure of
how difficult a project is or will be. It can refer to the difficulty of executing it, and the varying
factors that could make it more or less complex. It might cover the project team, technology,
target, objectives, and so on. Project complexity is all relative to the experience and resources of
the project team.
Project Risk is the possibility that the outcomes of the project may vary from what is
planned for, and the differing degrees of impact that might have on the project goals and
objectives (Siraj & Fayek, 2019). It is a measure of potential unknowns that might factor in the
project, which can range from unforeseen costs, low engagement, setbacks and delays. Risk
management includes the identification and mitigation of risks, and taking the necessary
measures to prepare for any worst-case scenarios. By mitigating risks, organizations can reduce
the risk of a project failure and secure greater chances of success.
Graduate-level response
Provide an example of the upside of risk? How does it compare to as downside.
How does an organization prepare to take the greatest advantage of an upside to risk.
The upside of risk can be seen as an opportunity cost, where taking a risky action can
open up potential rewards that would not have been available without taking the risk. For
example, if a company is considering developing a new product, they may take on the risk of
investing resources into researching, testing, prototyping, and marketing the product. Although
there is a risk of the venture not succeeding, there is also the potential reward of the new product
becoming a success.
When compared to the downside of risk, the upside of risk provides the possibility of
greater rewards. The downside to risk is that the investment is not guaranteed to succeed, which
can lead a company to lose money without any return. Therefore, companies must carefully
consider the potential upside of each risk they face in order to make the best decision for their
business.
In order to take the greatest advantage of an upside to risk, an organization must be
willing to accept some degree of risk and be prepared to act upon the opportunity it presents.
This requires an organization to conduct research to understand the potential costs and benefits
of the risk, determine the best course of action based on the resources available, and implement a
plan that can yield the greatest rewards should the risk pay off. Additionally, an organization
must have a cohesive and collaborative approach in order to maximize the return on the risk
(Friday et al., 2021). Through communication and collaboration, multiple departments can work
together to ensure that the risk is properly managed, resources are allocated efficiently, and the
potential reward is maximized.
Overall, taking risks can reap great rewards for an organization that is prepared and
willing to face the potential repercussions of taking on such chances. By understanding the risks,
conducting research into potential downside and upside rewards, implementing a well-thought-
out plan and having a collaborative team, an organization can take the greatest advantage from
the upside of risk.
References
Friday, D., Savage, D. A., Melnyk, S. A., Harrison, N., Ryan, S., & Wechtler, H. (2021). A
collaborative approach to maintaining optimal inventory and mitigating stockout risks
during a pandemic: capabilities for enabling health-care supply chain resilience.
Journal
of Humanitarian Logistics and Supply Chain Management
,
11
(2), 248-271.
Siraj, N. B., & Fayek, A. R. (2019). Risk identification and common risks in construction:
Literature review and content analysis.
Journal of construction engineering and
management
,
145
(9), 03119004.
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