Reflection and Discussion Forum Week 3
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Reflection and Discussion Forum Week 3
Chapter 7 focuses on how important it is to identify risks when managing projects. The chapter
provides valuable information and tools for project managers who want to improve their risk
management skills. It highlights the availability of numerous tools and techniques that can be
tailored to suit the specific needs of a project. These tools include charts, various analysis
methods, the combination of different tools, and the use of visual aids. Overall, this chapter
emphasizes the importance of risk management in project management, and it offers practical
tips for identifying and mitigating risks. As per the chapter, it is impossible for a single tool to
identify all the potential risks involved in a project. However, with practice and multiple tools,
one can improve their ability to identify risks. To identify risks, the chapter suggests using
brainstorming in a structured way and holding workshops with a few qualified individuals. The
outcome of these workshops is usually a list of risk descriptions that might need to be clarified. It
is essential to convert these descriptions into clear risk statements to manage the risks involved
in a project effectively.
Chapter 8, there is a discussion about identifying and managing risks when handling projects.
The chapter provides project managers with helpful information and tools to improve their risk
management skills. To identify risks associated with a project, it is recommended to use various
tools such as charts and analysis methods. The chapter suggests that multiple tools should be
utilized as no single tool can identify all risks. However, by practicing and utilizing different
tools, you can enhance your capabilities to identify them. The chapter advises conducting
brainstorming sessions and workshops with a few knowledgeable individuals to identify risks.
These workshops typically create lists of risk descriptions that must be clearer to manage risks
efficiently. The chapter highlights the importance of risk management for project success and
provides practical tips to identify and manage risks.
Graduate Level Response:
1.
Risk Identification: Identifying potential risks that might impact a project or
organization is what we call Risk identification process. Systematically identifying
and documenting risks and opportunities that may impact objectives is critical. Risk
identification methods include brainstorming, historical data analysis, and expert
interviews.
2.
Risk Evaluation for Chance of Occurrence: It is important to assess the likelihood or
probability of each risk occurring once identified. This assessment helps to
understand the chances of a risk materializing and is usually expressed as a
probability percentage. It aids in ranking risks based on their likelihood, from
improbable to highly likely.
3.
Risk Evaluation for Impact if the Risk Takes Place: During the risk assessment phase,
you need to evaluate the potential consequences of each identified risk. This
evaluation involves considering the impact that each risk could have on the project or
organization, if it were to occur. The assessment should consider various factors, such
as cost, schedule, quality, reputation, and safety. To get a clearer understanding of the
potential severity of each risk, the impact can be rated on a scale.
4.
The Four Types of Risk Remediation:
Risk Reduction: This lowers overall risk levels by proactively improving
processes, systems, and resources through incremental changes to decrease the
likelihood and impact of identified risks.
Risk Diversification: This lowers overall risk exposure by diversifying
investments, projects, and markets.
Risk Sharing: Collaboration with multiple stakeholders to collectively manage
and share the impact of specific risks is necessary. It involves creating
partnerships or consortiums where each party takes on a portion of the risk.
Contingency Planning: Predefined strategies and responses should be developed
to minimize the consequences of adverse situations quickly and effectively.
5.
Project Risk Owner: In a project, a risk owner is a person or team that is responsible
for managing a particular risk during the entire lifecycle of the project. Their role
involves monitoring the risk status, implementing risk management strategies, and
ensuring that the risk remains within acceptable limits. The risk owner is accountable
for the risk and takes necessary actions to mitigate its impact on the project.
6.
Risk Threshold: A risk threshold is a specific point set to define the maximum level of
risk that a project or organization is willing to accept. If a risk exceeds this limit, it
requires immediate action or additional analysis. A risk threshold is useful in
establishing clear boundaries for the level of risk that an organization is willing to
tolerate.
7.
Risk Matrix: A risk matrix is a useful visual tool that provides a structured approach
to evaluating and prioritizing risks. It employs a grid format with two axes,
likelihood, and impact, on which risks are plotted based on their assessed probability
and potential impact. This visual representation aids in ranking risks and determining
appropriate risk response strategies.
Reference and Citation
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Borkovskaya, V., & Passmore, D. (2020). Risk Reduction Strategy and Risk Management on The
Basis of Quality Assessments. IOP Conference Series. Materials Science and Engineering,
869(6), 62051-.
https://doi.org/10.1088/1757-899X/869/6/062051
Edwards, P. J., Serra, P. V., & Edwards, M. (2019). Managing Project Risks. Wiley Professional,
Reference & Trade (Wiley K&L).
https://reader2.yuzu.com/books/9781119489733
Shanidze, G. (2020). IN A MODERN BUSINESS STRUCTURE, A RISK MANAGEMENT
SERVICE
IS
PREFERRED.
ეკონომიკური
პროფილი
,
15(20),
109–112.
https://doi.org/10.52244/ep.2020.20.12
Description: A family of four is planning to take a road trip covering 1,000 miles one way to
reach Myrtle Beach, SC. They plan to stay at a coastal resort for one week.
#2
Risk Analysis: A family of four is planning a road trip, driving 1,000 miles one way to Myrtle
Beach, SC, for a one-week stay at a coastal resort
Weather Conditions (Likelihood: Medium, Impact: Medium): The family's journey could
be impacted by unpredictable weather changes, leading to a change in driving conditions
and outdoor activities at the beach.
Vehicle Breakdown (Likelihood: Low, Impact: High): Although there is a low likelihood
of the family's vehicle experiencing mechanical issues, it could have a high impact on the
trip if it happens.
Accidents on the Road (Likelihood: Low, Impact: Medium): The possibility of
encountering accidents or road incidents during the long road trip is low. However, if
such events occur, they could have a medium impact on the journey.
Driver Fatigue (Likelihood: Medium, Impact: Medium): Long hours of driving may lead
to driver fatigue, impacting road safety and overall enjoyment.
Safety Concerns at Destination (Likelihood: Low, Impact: High): Although there is a low
likelihood of safety concerns related to water activities at the coastal resort, such as
swimming in the ocean or pool, it could have a high impact if not managed properly.
Conditions
Priority
Likelihood
Impact
Weather Condition
Medium
Medium
Medium
Safety concerns at Destinations
High
Low
High
Driver Fatigue
Medium
Medium
Medium
Vehicle Breakdown
High
Low
High
Accident on road
Low
Low
Medium
Hello Kanika, I agree with your thorough insights into the intricacies of project risk
management. Your explanations regarding risk identification and evaluation are very clear and
highlight the importance of assessing potential threats comprehensively. The four main risk
remediation strategies, including avoidance, reduction, transfer, and acceptance, are well-defined
and offer a practical approach to dealing with risks. I also appreciate your explanation of the
concept of a project risk owner and the significance of a risk threshold in decision-making.
Furthermore, your application of risk analysis to a real-life scenario, such as a family beach
holiday, effectively illustrates how a risk matrix can be used to anticipate and address potential
dangers. Your insights are not only informative but also practical in ensuring safety and
enjoyment during such outings. Thank you for sharing this valuable information.
Hello Abhishek, I agree with your comprehensive explanation of the importance of risk analysis
in project management, Abhishek. Your risk identification and evaluation descriptions are very
clear, emphasizing the need to thoroughly assess potential hazards and their probabilities and
impacts. The four primary risk remediation strategies, including avoidance, reduction, transfer,
and acceptance, are well-defined and offer practical ways to deal with risks effectively. The
concept of a project risk owner and risk threshold are vital elements in the risk management
process, ensuring that risks are managed proactively. Your practical example of a family
vacation, and the example of a risk matrix to assess potential dangers during the trip, has made
the concept of risk analysis tangible and relatable. Thank you for sharing these valuable insights.
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