Managing Project Risks: Strategies And Techniques

Question 1

Question 1

In any project undertaken in the market, uncertainties may exist and the unexpected could happen. Risk identification therefore involves accessing the inessentials or threats and by considering the risks that might affect the project, a project manager undertaking risk identification and activities can filter unnecessary threats to focus on project related risks in order to make the project less prone to risk. Moreover, the process involves going through the company and finding the any negative events that might interfere with the operations that are being carried. The process may involve the use of various techniques like the brainstorming which entails taking the experts to be in the decision making panel of effective and also through the use of questionnaire spreadsheet to acquire information from the immediate respondents.

Question 2

Project risks are documented in the risk management plan. (c)

Question 3

The qualitative analysis identifies the cost and time of the risk expected (b)

Question 4

The warning signs involves the events that results in the risk actually occurring. (c)

Question 5

The project manager should also prepare the opportunities apart from the threats. (c)

Question 6

To assign an owner to each risk identified develop a probability impact matrix. (a)

Question 7

Tools and techniques used to identify risk process is brainstorming (a)

Question 8

Ineffective risk management tool is the excel spreadsheet. (b)

Question 9

The phase at which phase does the project manager implements approved actions is the monitoring and controlling phase (d).

Question 10

High level of risk register is to identify risk. (c)

Question 11

After risk management plan is prepared the next important step is to identify the risks. (c)

Question 12

The valid response to the negative risks is to mitigate. (b)

Question 13

The step missing in the plan is the risk mitigation. (c)

Question 14

The technique that john is using is the Delphi technique. (a)

Question 15

The type of risk response is the accept. (a)

Question 16

Share (d)

Question 17

The quantitative risk analysis will evaluate the probability and impact. (d)

Question 18

Risk response plan is another name of the Risk management plan. (d)

Managing project risks

Business risks come in variety of the tangible and intangible forms over the course of the operation cycle. For example the tender offered to the National archives of Australia to offer computer services to the ACT Canberra (Raspotnig and Opdahl, 2013). In real times and analysis, some of the risk occurs during the ordinary course of the business while others occur during the extraordinary courses. As an aspect in business planning it is important for the firm to identify the risks and then takes its time to manage them to protect the business from the mess. This medium can be done through using various techniques;

Question 2

Avoidance of the risk

One of the strategies of managing the identified risk is to avoid it all the same. In most of the cases, the avoidance takes place where the business shuns taking part in activities that are known or perceived to have risks of any kind (Raspotnig and Opdahl, 2013). For example the website might avoid sourcing and storing its data from the archives due to the issue of security that might take place hence rendering the project outcome to be at bay. Similarly, the building of the hosted website application should not be done externally but rather internally in the database of the user in the archives. Moreover, the website security issue that is appropriate to support the administration should be hidden.

Risk mitigation

The risks can also be managed through mitigation or perhaps the reduction process which exist to lessen or reduce any negative consequences that might affect the operation of the firm. For example the software company like the national archives would chose to release the programs which are not performing effectively in the marker by making releasing the programs in bits to the market to get the feedback correctly and rectify the situation (Raspotnig and Opdahl, 2013).

The transfer of risk

This technique involves the firm moving the identified risks away from the company. In most of the cases in will involve the company paying some amount of premiums to the insurance company who will assist in paying for the project when the item insured has occurred. The company should be able to insure all the products that are necessary to the insurance company to ensure that the solution is found in the case the subjected risk appears (Raspotnig and Opdahl, 2013). For example in the case of fire at the storage facilities of the company, the risk can be transferred to the insurance company.

Risk acceptance

The risk management can also be implemented through the acceptance of risk techniques. The company can choose to retain a certain aspect of risk that is brought by a given project in the system. The company through compatibility measure would seek to maintain the risks and think of how manage it through monitoring and control process. For example the company must work with the former website since the tender is on the basis of making an improvement. The company should be prepared for the risk that will take place in the case the system fails to be compatible with the earlier and this will force the company to involve some of the technicians for a recap of the work. The risk can also be noticed during the testing process.

Question 3

Question 1

The project is operating under various contexts and one of the common one is the nature of the product. The company deals with a product service provider on the basis of website that itself has faced a number of challenges like for example the failure of the program to function, the process failing to meet the client’s needs and speculations and purposely the product failing to be compatible with the current website for the purposes of efficiency (Tang and Musa, 2011)). The issue of compatibility can be solved through hiring skilled persons on that field even in the expense of the company to make sure that the risk is managed adequately. The whole process will entail the use of additional funds that perhaps may be taken out of the prescribed budget.

Question 2

There are various approaches that were used to identify the risk that might take place on the project. This includes the use of the comprehensive databases of the past events which lies basically in the minds of the people especially in the minds of the project manager. This risk will be identified through the brainstorming techniques of the project team concerning the past events to find out how the issue affected the whole process through a failure of the systems. In addition to this, the companies experience will be a major factor that assisted in the identification of the risk involved in the project (Manuj and Mentzer, 2008). For example there have been some past issues on the compatibility failure that resulted for the company to repeat the whole process and furthermore involve some experienced technicians to rectify the situation. The factors were very vital for making sure that the same risk is managed by technically accepting and financing the all process. This process also applied the techniques like the questionnaires worksheets to provide them with essential information concerning the same. The response that contained both the negative and the positive effects were discussed by the managers of the company in the provision of the right way for effective preparation of risk that might occur.

Question 3

Risk no	Risk category	Risk description including existing risk control	likelihood	Impact	Rating	Mitigation strategy/ response
			Initial
		outline any existing risk controls in place>				mitigation, acceptance, exploit etc.>
2	Operational risk		It is likely to occur	Strong	High
3	Risk to business continuity		Likely to occur	Mild	High
4	Compliance risk		Not likely	Mild	High
5	transactional risks		Not likely	Mild	Low

 Legend of risk categories

1. Compliance risks
2. Transactional risks
3. Operational risks
4. Risks for business continuity

Risk Rating Scales and Overall Rating

82- 100 %     undoubted

62- 81 %      low

43- 61 %     moderate

27- 42 %      cautionary

14- 26 %      unsatisfactory

Under 14    unacceptable

Risk for business continuity can take place when the companies operation and equipment are struck down and that may affect the continuity of the company in giving their services to the company. For example the store has been flooded by water and has affected materials worth millions. This can be solved by having a good warehouse to prevent such risks from happening. Most of the cases the employees can also be involved to manage the equipment well. The risks deserve a lot of attention from both the manager and the employees for effective performance.

Avoidance of the risk

The operation risks occur during the work processes where the machine can stop to function and hence preventing the work from going on in the right way. For example the failure of the back-up system in the website that is very essential for the operation to continue. The risks can be mitigated through the manager of the contract making sure that an alternative is provided to cater for the failure of the other system. The operational risks can be very mild at the beginning of the project but it can affect a great deal when not managed effectively (Fabiano, Currò, Reverberi and Pastorino, 2008).

Action plan

Risk Rating : <As per rating scales>	Category: <Risk category> Operational risk	Risk Treatment: <Accept/Mitigate/Avoid/Transfer>
Action plan
Proposed Actions:  Alternative service provider
Resource requirements; A consistent power flow
Responsibilities; Manager making sure that the process is alternated
Cost impact
Time impact
Reporting or monitoring required

Question 1

The past reaction of the working environment provided an alternative source of information for the company to understand the kind of risk that might impact the operation. A questionnaire form was passé to the company that offered the tender to get any information on any problem that might hinder the effectiveness of the operation. Brainstorming techniques was also used to aid the company in getting essential information for the case of managing the risk and also most importantly on the identification of the risks (Bird, 2009).

Question 2

The outcome of the review was perhaps positive as the respondent gave the right information that could be tabulated and reasoned about. The managers of the company managed to give out the essential facts like the amount of currency that was used by company that took the contract. The information was not far away from the speculation that was given earlier in the management process that indicated the amount that the company should prepare to have (Ahmed, Kayis, and Amornsawadwatana, 2007). Moreover, only a small significant amount was a difference from the speculation and this the company could still make it at standby for the sake of importance occurring in the company.

Question 1

 The figure and the processes are very much effective since the unknown risks are very uncertain. In the review there are consideration of both the unknown and the known risks that could be taken care of in the case of occurrence. Therefore, based on the confirmation that took place through the techniques to make sure that the accuracy is performed to provide the right information to the company, the review should be accepted and confirmed. The effectiveness is also capture in the fact that the past operation left and the risks encountered in the process made possible for the company to accept any of the proposal based on the risk. The accuracy level of the study and the speculation is paramount and this confirms the essentiality that should be considered as part of the process.

Question 2

Date	Description of problem/opportunity	Recommended Action for next time/project	Lesson Learnt Raised By
	The workers injuries	Insurance policy
	The power failure	Alternative generators
	The issue of compatibility	Effective expertise
	The natural calamities	Insurance policies
	The breakdowns	Immediate repairs
	Issue of theft cases	Insurance policies

Ahmed, A., Kayis, B. and Amornsawadwatana, S., 2007. A review of techniques for risk management in projects. Benchmarking: An International Journal, 14(1), pp.22-36.

Bird, D.K., 2009. The use of questionnaires for acquiring information on public perception of natural hazards and risk mitigation-a review of current knowledge and practice. Natural Hazards and Earth System Sciences, 9(4), p.1307.

Fabiano, B., Currò, F., Reverberi, A.P. and Pastorino, R., 2008. A statistical study on temporary work and occupational accidents: specific risk factors and risk management strategies. Safety Science, 46(3), pp.535-544.

Manuj, I. and Mentzer, J.T., 2008. Global supply chain risk management strategies. International Journal of Physical Distribution & Logistics Management, 38(3), pp.192-223.

Raspotnig, C. and Opdahl, A., 2013. Comparing risk identification techniques for safety and security requirements. Journal of Systems and Software, 86(4), pp.1124-1151.

Tang, O. and Musa, S.N., 2011. Identifying risk issues and research advancements in supply chain risk management. International journal of production economics, 133(1), pp.25-34.