Scope - 1. Identify at least two project risks for each of the following risk categories:
· Scope risk
· Scheduling risk
· Resource risk
· Technology risk
a. Scope risk includes risk such as; addition of unapproved features to a product and lack of proper analysis and understanding of the requirements.
b. Schedule risk includes risk such as failure to baseline schedules and sequence mistakes.
c. Resource risk includes risks such as failure to get a skilled technician within scheduled time frame and project delay due to a slow budget approval process.
d. Technology risk includes risks such as hardware and software failure as well as human error.
Scope - 2. Outline three examples of tools or techniques that could be used to identify risks as part of a risk assessment process.
Risk identification tools and techniques includes;
a. Documentation reviews- standard practice that entails review of project related documents such as organizational project assets.
b. Brainstorming - done when a group of people focus on identification of project risks.
Information gathering techniques- these techniques uses techniques used to collect requirements.
Scope - 3. Outline three sources of information that can be used to gather information on potential risks within the workplace.
Sources of information on risk includes;
a. Questionnaires - workers respond to the asked questions and hence adequately answering them in a manner that ensures there is identification of potential risk in the workplace.
b. Risk registers and risk reports - these documents provide the basis for identification of the potential risks.
c. Business impact analysis - document containing detailed risk analysis examining the nature and extent of disruptions as well as the likelihood of the resulting consequences.
Scope - 4. Explain each of the key components of a risk management plan
The risk management plan has seven crucial components including;
a. Roles and responsibilities- the section has a description of the leading and supporting roles of risk management process. the manager has overall responsibility of risk management. third party risk management teams may also perform independently, unbiased risk analyses of projects than those from sponsoring project team.
b. Budgeting - where a risk management budget estimate is developed to determine costs.
c. Timing- defines when the initial risk assessment is to be performed and the sequence of conducting of risk management processes in the projects life cycle.
d. Scoring and interpretation- a risk management plan should define scoring and interpretation methods appropriate for qualitative and quantitative risk analysis being performed.
e. Threshold level - where the risks are important to act upon. the acceptable threshold forms the target against which the project will analyze risks.
f. Communication- describe the documentation and communication of information on risk such as risk responses and risk status.
g. Tracking and auditing- documents how all risk activities will be recorded for benefit of the current project, future needs and lessons learned.
Scope - 5. Summarise the purpose of Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009) and identify the key principles underlying this risk management standard.
The purpose of Australia/New Zealand Standard for Risk Management (AS/NZS ISO 31000:2009) is on emphasis aiming at assisting the organization in increasing the likelihood of achieving objectives, improving the identification of opportunities and threats as well as identifying and treating risks throughout the organization. Key principles underlying the risk management standard include integration of processes for managing risks into organizations governance, strategy and planning, management, reporting processes, policies, values and culture.
Scope - 6. Describe the characteristics, techniques and appropriate applications of both quantitative and qualitative risk analysis.
Quantitative risk analysis techniques refers to a numerical estimate of the overall effects of risk on projects costs and schedule objectives. Quantitative risk analysis is applied in projects requiring contingency reserve for schedule and budget, large, complex projects requiring go/no go decisions and projects where upper management wants more details about probability of completing the project on schedule and within budget. Quantitative risk assessment techniques include; three point estimate, decision tree analysis, expected monetary value, monte Carlo analysis, sensitivity analysis and fault tree analysis. Qualitative risk analysis refers to techniques used to quantify risk associated with a particular hazard. This technique is majorly applied inn screening level assessment when comparing multiple alternatives or when sufficient data is not available to support numerical probability or consequence estimates. Qualitative techniques includes brainstorming, interviewing, Delphi technique, historical data, SWOT analysis and risk rating scales.
Scope - 7. Outline the key steps involved in a risk management process.
There are five steps in risk management process;
a. Risk identification- this includes anticipation of possible pitfalls through using experts to identify risks or using risk breakdown structure to list out potential risks in a project and organizing them according to level of detail from most risky to less risky . this helps the management monitor risk and identify it when it arises.
b. Analyze the risk - where the team identifies possible problems and establishes the likelihood of their occurrence as well as ramifications. this helps refine risk management process for future projects.
c. Prioritize the risk- This move provides you with a holistic view of the project at hand and determines where the focus of the team should lie. Most importantly, for each risk, it will help you find workable solutions.
d. Treat the risk- Treating and mitigating the risk effectively often means using the resources of the team effectively without in the meantime derailing the project. As time goes by, you can predict future risks for a more proactive rather than reactive approach to more successful care as you build a broader archive of previous projects and their risk logs.
e. Monitor the risk- this involves having a clear communication among the team and stakeholders when ongoing monitoring potential threats.
Scope - 8. Explain five options for controlling risk.
Risk assessment control measures include;
- Avoid the risk where one decides not to be involved in risky situations
- Finance the risk- funding risk treatment and financial consequences of the risk.
- Reduce the risk through application of appropriate techniques and management principles to reduce occurrence of risk and the consequences.
- Retain the risk through intentionally or unintentionally retaining the responsibility for loss or financial burden of loss
- Transfer of risk where there is shifting of responsibilities or burden of loss to another party through contract, insurance of other means.
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Seven components to a risk management plan - TenStep. (2017, September 18). TenStep - You Can Manage. https://tenstep.com/seven-components-to-a-risk-management-plan-2/
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