Risk_assessment_Report
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Feb 20, 2024
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Running Head: Risk Assessment Report
1
Bathsheba Harris
Southern New Hampshire
6-2 Qualitative and Quantitative Risk Assessment Report
October 7, 2023
Risk Assessment Report 2
To estimate the qualitative and quantitative risks of bringing the project to completion
under different circumstances, this report will consider the potential outcomes and associated
risks for each scenario:
Scenario 1: On Time
Qualitative Risks
Since the project is completed on time, there is a low risk of financial losses due to
penalties for late delivery. However, there might be moderate risks associated with
unexpected technical challenges or minor delays during implementation.
Quantitative Risks
Given that the project is completed on time, a relatively low financial risk is
associated with penalties or revenue loss. However, there may still be some minor unforeseen
expenses.
Scenario 2: One Month Early
Qualitative Risks
Completing the project one month early could introduce risks associated with
potentially rushed implementation, which may lead to overlooked security measures or
technical glitches. Also, there is a relatively low risk of financial penalties due to early
delivery as long as all contractual obligations are met.
Quantitative Risks
While some additional costs may be associated with accelerated implementation, the
overall financial risk is still relatively low. The potential gains from early completion of the
network implementation project might outweigh any additional expenses.
Scenario 3: Two Months Late
Qualitative Risks
Risk Assessment Report 3
In a two-month delay in project completion, qualitative risks escalate significantly.
The potential for substantial penalties due to late delivery looms large, and such a delay could
also precipitate reputational damage to the U.S. government, potentially eroding trust and
confidence (Gardner et al., 2021). This, in turn, may impact future contracts and
collaborations. Concurrently, technical challenges may surface as a consequence of the
extended timeline. Resource constraints might intensify, potentially impeding the acquisition
of requisite expertise and materials. Moreover, the evolving project scope introduces
additional uncertainties, potentially leading to complications.
Quantitative Risks
With a two-month delay, the financial implications are substantial. The company may
face considerable monetary penalties due to breaching contract terms associated with tardy
project delivery (Silverman, 2021). These penalties can significantly impact the project's
profitability and the company's overall financial health. In the worst-case scenario, if the
delay reaches a critical threshold defined in the contract, the company could face contract
termination, resulting in the loss of the entire contract value. This would be a significant blow
to the company's revenue and reputation.
Estimate of Qualitative Risks
1.
On-Time, but Not with the Required Security
Qualitative Risk: High
Delivering the project on time without the required security measures poses a high
risk. It could potentially lead to breaches or vulnerabilities, jeopardizing sensitive information
and violating compliance standards (
Jamshed et al., 2015
).
2.
One Month Early with Required Security Requirements
Qualitative Risk: Medium
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Risk Assessment Report 4
Completing the project one month early with the required security measures still
entails some risk. Rushing the process may result in oversight or minor technical glitches, but
the security measures mitigate some potential risks.
3.
Two Months Late, Without Required Security Requirements
Qualitative Risk: Very High
A two-month delay without implementing the required security measures carries an
extremely high risk. Apart from penalties for late delivery, it could lead to severe security
breaches, reputation damage, and potential contract termination.
Estimate of Qualitative and Quantitative Risks
Qualitative Risk: Very High
The financial and reputational risks are immense. Not meeting Contractual
commitments can lead to severe penalties, contract termination, and significant reputational
damage. Financially, this could result in losing the entire contract value and potential legal
repercussions. The impact on future contracts and collaborations could also be substantial.
Risk Assessment Report 5
References
Gardner, T. A., Benzie, M., Börner, J., Dawkins, E., Fick, S., Garrett, R., Godar, J., Grimard,
A., Lake, S., Larsen, R. K., Mardas, N., McDermott, C. L., Meyfroidt, P., Osbeck, M.,
Persson, M., Sembres, T., Suavet, C., Strassburg, B., Trevisan, A., … Wolvekamp, P.
(2019). Transparency and sustainability in global commodity supply chains. World
Development, 121, 163–177. https://doi.org/10.1016/j.worlddev.2018.05.025
Jamshed, N., Ozair, F., Sharma, A., & Aggarwal, P. (2015). Ethical issues in electronic health
records: A general overview. Perspectives in Clinical Research, 6(2), 73.
https://doi.org/10.4103/2229-3485.153997
Silverman, A. (2021). 4 types of breach of contract you need to be aware of.
Contractworks.com.
https://www.contractworks.com/blog/4-types-of-breach-of-
contract-you-need-to-be-aware-of