Understanding Risk Management In Project Management

Risk Identification Process on a Project in a Range of Risk Categories

.1. It is important that project maNgers are able to identify project risk in a range of risk categories when maNging a project. Explain the risk identification process on a project in a range of risk categories. (Guide: 500 to 600 words).

1. Communications: risk in the sector of communication ca be calculated with the help of the management of the entre task in a better manner. Inefficient data distribution acts as one of the major reason behind this projection (Andow 2016)

2. Compliance: Risk related to compliance can be estimated with the help of the data that are collected with the help of the data management terminology of the employees of the organization (Vinik, Casellini & Nevoret, 2016).

3. Consultative: Consultative problems that are present in the course of data management can be understood with the help of the fact that the employees of the organization will not get better access in the entire project and the project efficiency gradually decreases (Paulus, Lester & Dempster 2013).

4. Environmental: Environmental risks can be estimated in a way that the completion of the project gets affected in a negative way as the atmosphere in the organization declines (Vinik, Casellini & Nevoret, 2016)

5. Finance: Financial issues can be estimated with the help of the procurement of the project. This can be estimated by figuring out the fact that the availability of resource will decrease with time

6. Health and safety: Health and safety can be estimated by the fact that thee projection of the entire commencement of the project. This can also be estimated by the daily attendance tracker of the individuals (Matthews 2013).

7. Human resources: Human resource risks can be identified with the estimation of the employee satisfaction that is present in the course of the management of the project. Employee satisfaction checker can be estimated (Matthews 2013).

8. Legal: Legal risk can be calculated by the projection of the letters that are provided by the government to the organization for proclamation of the project (Seawright, 2016)

9. Organisational brand: Organizational brand risk can be estimated with the help of the calculated record that portrays the projection of the entire management system (Vinik, Casellini & Nevoret, 2016).

10. Physical: Physical risk can be calculated with the help of the condition of the organizational structure that will help in better understanding of the project (Paulus, Lester & Dempster 2013).

11. Political: Political risk can be calculated by the projection of the letters that are provided by the government to the organization for proclamation of the project (Vinik, Casellini & Nevoret, 2016).

12. Project assumptions: Project assumption risk is calculated with the help of the activities that are stated in the completion of the project (Matthews 2013).

13. Project constraints: Risks regarding the project constrains can be calculated with the help of the output of the project and this is the reason that management of the project will be performed with the help of proper risk management (Paulus, Lester & Dempster 2013).

14. project process risks: Project process risk estimation can be calculated with the help of the data management terminology with the help of the risk register (Seawright, 2016).

15. quality: Quality of the project risk can be estimated with the help of the data prosecution regarding the functioning of the project

16. Social: Risks regarding social management of the project can be calculated with the help of the project commencement. The risks can also be calculated with the help of the level of popularity among the local people (Matthews 2013)

17. Technology: Technological risks can be estimated with the help of the usage of the technology that is being used (Seawright, 2016).

1.2. Classify each project risk provided below into different risk categories. Write the letters that correspond to your answers in the spaces provided.

Guidance: Although a project risk may be classified into more than one (1) risk category, you must choose only one (1) risk category for each project risk. Having multiple answers is not allowed.

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Number of weeks	Weeks 1-4

Risk Categories
a. communications b. compliance c. consultative d. environmental e. finance f. health and safety g. human resources h. legal i. organisational brand	j. physical k. political l. project assumptions m. project constraints n. project process risks o. quality p. social q. technology
Project Risks
Legal	Breach of contract
communications	Requirements are misinterpreted by the project team and gaps and variances develop between expectations, requirements, and work packages.
human resources	Stakeholder turnover or stakeholders suddenly leaving the project due to conflicts and disagreements.
project assumptions	Required activities are unintentionally missed out or are missing from scope definition.
Physical	Project team members sustain injuries due to lack or inadequate risk controls.
Quality	Inexperienced project team members produce lower quality products, which would result in more retesting than originally planned.
Finance	Costs are incurred in foreign currencies exchange rates.
project assumptions	Project deliverables and specifications are found to be culturally inappropriate to the target market.
Health and safety	A number of project activities emit air pollution and put project team members at risk for lung cancer.
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Legal

Sensitive and confidential project data and information are stolen by hackers.

1.3. Provide one (1) example of project risks for each risk categories listed below. Do not use the project risks provided in Written Question 1.2.

Risk Categories	Project Risks
Human resources	Teams are not efficiently maNged and results in poor resource allocation
Legal	A lawsuit has been filed by the contractor against the organization for not addressing the terms and condition of the contract properly

1.4. Explain what would be the key components of a risk maNgement plan. (Guide: 50 words).

Key components of the risk maNgement plan are:

· Development of proper risk matrix and identification of risk

· Development of risk mitigation plan as per the risk matrix

· Prioritize the risk as per the risk matrix and develop strategy for that accordingly

· proper review of the risk mitigation plan and identify scope for improvement and integrate that into the plan

1.5. The following are key components of a risk maNgement plan. Match each component to its correct description. Write the letters that correspond to your answers in the spaces provided.

	Key Components of a Risk MaNgement Plan	Description
d	Context	a. This involves the assignment of an overall risk rating to each of the risk events identified through analysing inherent risk, identifying and evaluating controls, and analysing residual risk. It helps validate and prioritise key risks to monitor and it highlights any opportunities for improvements to current activities used as controls in the project.
f	Risk identification	b. This involves developing a range of options for mitigating the risk, assessing those options, and then preparing and implementing action plans. The highest rated risks should be addressed as a matter of urgency.
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a	Risk analysis and evaluation	c. This should be a planned part of the risk maNgement process. It involves regular checking or surveillance, wherein the results are recorded and reported externally and internally, as appropriate.
b	Risk treatment	d. This involves defining the scope for the risk maNgement process and sets the criteria against which the risks will be assessed.
c	Monitoring and review	e. These must integrated into the entire risk maNgement plan. These involve seeking and sharing views and information regarding project risks and considering other project stakeholders’ view as part of decision making processes.
e	Communication and consultation	f. This is a critical step in effective risk maNgement and needs to be comprehensive. If a potential risk is not known at this stage it is omitted from further analysis, which means a material risk may be given insufficient attention.

1.6. Research risk maNgement framework and explain your understanding of industry standard risk framework and the purpose of risk maNgement framework. You are also required to illustrate the risk framework in a diagram. (Guide: 150 to 200 words).

The risk maNgement framework is a federal government policy of the United States which supports to secure the information system. This risk maNgement framework is developed by the National Institutes of Standards and Technology. The framework of the risk maNgement provides structured and disciplined process which includes the risk maNgement and the information security activities in the development cycle of the system (Matthews, 2013).

There are various type of risks related with the industry standards projects. In this case a risk maNgement framework is included for mitigating the risks associated with the industry standard projects. From the understanding of risk framework of the industry standard projects it is assessed that for every type of assessed risks there are practical mitigation process are given in the framework (Sadgrove, 2016). In this framework mitigation measures are also prioritized for effective implementation of the risk maNgement framework. Also, a qualitative risk mitigation technique is integrated in some cases to use the risk maNgement framework suitably.

A risk maNgement framework is required for the successful completion of a project. This risk maNgement framework can help to successfully complete the project by identifying the potential risks in a project. The main purpose of a risk maNgement framework is mitigating the problems which was previously assessed in the risk assessment of a project. By developing a risk maNgement framework all the risks can be addressed within the required time without hampering the project progress.

1.7. If you were working on a project, identify and describe characteristics, techniques and appropriate applications of quantitative and qualitative risk maNgement techniques and approaches. (Guide: 250 – 300 words).

The main characteristics of the qualitative and quantitative type of risk maNgement techniques is that it can help to protect the values of the business or the organization. The qualitative and the quantitative type of risk maNgement techniques help to analyse various types of risk scenarios potentially which can be faced by the organization in the future. Also, this risk maNgement techniques help to adapt with the business or the organization with the risk situation (Larson & Gray, 2015).

The techniques of the qualitative risk maNgement based on some methods. This methods includes the assessment of the risk occurrence probability and the impact of the risk. Also. This method includes the risk assessment matrix for the qualitative data. In the first technique likelihood of the each risk and how it will affect the project objective is assessed. Using the risk assessment matrix response priority of the each risk is developed. The quantitative risk maNgement technique is used commonly in the process industries to maNge the major hazards. In this risk maNgement technique systematic approach has been taken to estimate consequences and the probability of an event which is hazardous for the organization. This technique quantitatively produce the risk results and the environment of the business.

The main application of the quantitative type of risk maNgement is that it can help to define the success probability of the project execution plan. With that quantitative type of risk maNgement can be used for the identifying high type of risks, developing mitigation for those assessed risks. Also, the ongoing risk maNgement process can be improved with the quantitative type of risk maNgement and the client confidence can be improved with this techniques. The main application of the qualitative type of risk maNgement technique is that it helps to develop the rating scales. The rating scale can be used use for determining the occurrence of a risk and the impact level of it. Also, the qualitative risk maNgement technique can help to determine a specific type of risks related to the project which needs some extra attention (Cagliano, Grimaldi & Rafele, 2015).

1.8. The following statements describe Quantitative and Qualitative Risk MaNgement in terms of their characteristics, applications, and techniques they use. Write QNT if the statement refers to Quantitative Risk MaNgement and QLT if it refers to Qualitative Risk MaNgement. Write your answers in the spaces provided.

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QNT	a. It makes use of tools and techniques such as probability distributions, sensitivity analysis, expected monetary value analysis, and etc.
QLT	b. It assesses the priority of identified risk using their relative probability or likelihood of occurrence, the corresponding impact on project objectives if the risks occur.
QLT	c. It is used to determine categorisation of risks, causes of project risks, ranking of risks, and etc.
QNT	d. It involves numerical analysis of the effect of identified risks on overall project objectives.
QLT	e. It involves prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
QLT	f. It is used to conduct probabilistic analysis of the project, determine probability of achieving cost and time objectives.
QNT	g. It is performed on risks that have already been categorized and prioritised.
QLT	h. It utilises tools and techniques such as risk probability and impact assessment and matrix, risk data quality assessment, risk categorization, and etc.
QLT	i. This approach is usually done first followed by the other.
QNT	j. It is used to assign numerical rating to the risks individually or to evaluate the aggregate effect of all risks affecting the project.

1.9. The following are different tools and techniques used in Qualitative and Quantitative Risk MaNgement. Match each tool and technique to its correct description.

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	Tools and Techniques	Description
a	Expert judgement	a. This draws on experience and historical data to quantify the probability and impact of risks on project objectives.
e	Interviewing	b. This is a statistical concept used to calculate the average outcome when the future includes scenarios that may or may not happen.
d	Sensitivity analysis	c. This can be used in both Qualitative and Quantitative Risk MaNgement. In the qualitative approach, this is used to assess the probability and impact of each risk to determine its location in the matrix. In the quantitative approach, this is used to identify potential cost and schedule impacts, and to evaluate probability.
b	Expected monetary value analysis (EVM)	d. This helps to determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values.
f	Risk categorisation	e. This is used to rate risks as low, moderate, or high priority.
c	Probability and impact matrix	f. This is used to classify risk in terms of its sources or area of impact. It involves grouping risks coming from common root causes, leading to developing more effective risk responses.

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1.10. Risk MaNgement is a five step process which is listed below. Explain each step in detail in your own words. (Guide: 800 words).

Step 1 – Establish the context

Step 2 – Identify the risks

Step 3 – Analyse the risks

Step 4 – Evaluate the risks

Step 5 – Treat the risks

1. Establish the context: Establishing of the context of the risks that are present in the project maNgement deals with the aspect that the convergence of the data maNgement can be performed with the help of the maNgement of the activities that is to be performed. This is the reason that the functioning of the entire process is dependent on the functioning of the risk maNgement. In case proper estimation of the variables are done it can be estimated that the completion of the entire project will be permed with highest efficiency.

2. Identify the risk: Identifying the risk is considered to be the most important part of the project maNgement. Project maNgement is considered to be one of the most efficient tool that is used for better completion of the task. This ensures the fact that the completion of the entire project is hugely dependent on the functioning of the project. In case the projection of the data maNgement of the entire project. In case the completion of the project identifying of the risk helps in analysing the mitigating steps that must be included in the completion of the project. This calculation of the risks that might occur will definitely cost the business organization in a better prosecuting manner.

3. Analysis of the risks: Risk maNgement: Risk maNgement is stated to be one of the major problems that are present in processing of the project completion. This is due ti the fact that the creation of the risk maNgement helps in understanding the problems that might arise in the functioning of the project. the main problem that is present in the course of the risk maNgement is that the higher authorities get to know the main problems that might arise due to the process that are implemented in the functioning of the virtual digital assistance. This is the reason that the completion of the project will lead to commencement of the project. In case the risk maNgement plan is not generated the risk that might arise in the course of the processing might not be understood before commencing of the risk maNgement system. Risk maNgement is considered as one of the most important aspect of the project maNgement phenomenon. This is the reason that the implementation of the entire project can be perfumed with higher efficiency in case a risk maNgement plan is performed.

Risk maNgement plan is better maNged with the help of the risk register. In case of creation of the risk register for the project, the main advantage that is enjoyed by the higher authorities of the project maNgement team is that the entire project is diversified and broken down into small steps. This helps in understanding the steps that might bring in trouble to the project. This ensures the fact that the identification of risks that are present in the course of data maNgement can be performed with the help of the risk maNgement system. The main problem that arises in the projection of the data maNgement system is that the amount of money that is spent in mitigating the issues can be processed. Due to the fact that the risks that are approaching the business organization can be pre-determined, the amount of resources that will be required to mitigate the risks can also be calculated.

4. Evaluate the risks: This calculation and estimation of resources helps the higher authority of the business maNgement group to perform in a more efficient manner. In order to procure the risk assessment, the main observation that is take into consideration is the security of the project. This helps in estimating the stature of risk. In case the projection of risk maNgement system the main help that is gained helps in understanding the amount of resources that will be required for the completion of the project. This is the reason that evaluation of the task is probed with high importance. In case the processing of the entire project is estimated avoiding the entire project problems can be performed. The main problem that is present in the projection of the data assumption will includes the fact that the resource wastage prevention can be done. In case the functioning of the projects are well completed with the help of the risk assessment, it can be considered that the entire project will be performed with highest efficiency

5. Treat the risk: after analysing the risk, the main aspect that is taken into consideration is that the mitigation of the estimated risk. In case the main projection of mitigating process that is to be performed is accessed, the entire efficiency of the project will get better and this will help in reducing the risks that are approaching the project. Another instance that is present in the course of maNgement of the project incurs better prosecution of the pro3ject

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These case studies are hypothetical situations which will not require you to have access to a workplace, although your past and present workplace experiences may help with the responses you provide. You will be expected to encounter similar situations to these in future as you work in a project team environment.

Classification of Project Risks into Different Risk Categories

In the real world you are likely to encounter the situation where you enter a project, taking over from another project maNger. The documentation that is handed over to you is not necessarily up to scratch, and there could be serious issues with the project. This assessment captures that real life scenario.

The case studies are the first part of dealing with “multiple complex projects” required in all the units of this subject. The other assessment covering this requirement is the practical assessment. When you have completed the case studies you will be able to commence the practical assessment which covers the generic skills needed to function as an effective project team member. This assessment on the other hand covers the application of the underpinning knowledge and background theory.

You have just finished the consultancy work. The steering committee are about to sign off on the changes, but have requested you look at the risk aspects of the project as this has not been taken into account properly in the past.

Sam has suggested the risk maNgement plan was fine for the start of the project, but given all the recent upheaval with a new project sponsor and a new contractor, and as a result the time lines blowing out, there seem to be more risks that need to be documented.

You may download the following documents from from here:

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Assessment task 2: Identify project risks

In this task you are required to demonstrate your skills and knowledge in being able to identify project risk. You will be using the virtual company “Awesome Landscapes” for this task. You can access the website and download documents or view documents online to assist you with this task.

2.1. You are the acting as Sam Ng, the Project MaNger for Cascade Peak Chalets Landscaping Project. The project is underway and you would to review the progress of the project and determine risk objectives and standards with input from your project team. Meet with your team and discuss this and document your discussion in meeting minutes below. In your meeting you are also to discuss the project risk context

	MINUTES OF MEETING
DATE:	CHAIR:	MINUTES:	TIME:	VENUE:
Monday 23/06/017
Present:	Terrence Mackay, General MaNger Stephen Lyons, Planning MaNger of Cascade Peak Kate Chen, Project MaNger, Timber Home Construction Kim Nguyen, Director of Awesome Landscapes Pty Ltd Yourself acting as (Sam Ng)
No	Item			My Action Notes
1.	Communication problem			It was an agreed problem and supported by all
Standing Items
2.	Budget issue			Not so much issue in it
3.	Project schedule			Majority agreed that schedule needs improvement

4.	Equipment budget	Equipment budget should be reduced
5.	Contractor agreement	Lack of clarity
6.	Storage	Not proper storage allocated for storing items
7.	Weather issue	No defined plan to mitigate

ASSESSOR’S OBSERVATION CHECKLIST
Did the student demonstrate the following:	Yes	No
Ability to participate in verbal exchanges using clear and detailed language to provide and seek information	?	?
Used active listening and questioning to confirm understanding	?	?
Selects and uses appropriate communication practices to seek or share information with stakeholders
Collaborates with others to achieve joint outcomes, playing an active role in facilitating effective group interaction and negotiating outcomes	?	?
Developed and maintains project documentation using formats and language appropriate to context	?	?
Assessor’s feedback:
Assessor’s signature: Date:

2.2. You are now required to conduct a Risk Identification SWOT analysis for the project, taking into account the recent changes and discussion form your meeting.

Guidance: For the purpose of this assessment, assume that you will be facilitating this meeting with the project maNger and site supervisor in attendance.

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Risk Identification – SWOT Analysis
Project Name	Cascade Peak Chalets Landscaping Project
Prepared by	Sam Ng
Date	N/A
Project MaNger	Sam Ng
SWOT Analysis Facilitator	Sam Ng
SWOT Analysis Participants	Kate Chen, Project MaNger, Timber Home Construction , Kim Nguyen, Director of Awesome Landscapes Pty Ltd
SWOT Analysis Recorder	Sam Ng
Date of SWOT Analysis	N/A

Project Strengths What potential strengths exist about the project, the project team, the sponsor, the organisation structure, the client, the project schedule, the project budget, the product of the project, etc.?
· project tem strength is good · enough project sponsor · organization structure is properly defined · budget allocated is adequate · client communication is adequate

Project Weaknesses What potential weaknesses exist about the project, the project team, the sponsor, the organisation structure, the client, the project schedule, the project budget, the product of the project, etc.?
· project team needs more experienced members · no strategy for sponsor negotiation · lacks proper human resource maNgement in the organization structure · budget has no formal verification · no strategy defined if client has communication issue

Project Opportunities What potential opportunities exist in regard to achieving the project requirements, the product requirements, the project schedule, the project resources, the project quality, etc.?
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