1. Should project risks that have low likelihood be ignored?
2.What factors make a project high-risk?
3.Discuss the difference between internal risk and external risk. List sources of risk in each of these categories.
4. Risk management includes being prepared for the unexpected.
5. Can risk be eliminated from projects? Should management try to eliminate it?
6.Discuss briefly each of the following ways to handle risk: transfer risk, avoid risk, reduce risk, do contingency planning, and accept risk.
Answers
Answer:
1. High-probability/high-impact risks are the most critical, and you should put a great deal of effort into managing these. Low-probability/low-impact risks can often be ignored.
2. Lack of a Scope Document.
Inconsistent Communication.
Poor Planning.
Unrealistic Expectations.
Incompetent Project Manager and Team.
Lack of Cohesion Between Your Team Members.
Poor Monitoring and Risk Management.
Conclusion.
3. Internal risks include personnel management, such as labor shortages or poor morale and technology issues, such as outdated software. External risks include economic slowdowns, leading to lower revenue as well as political risks from trade wars hurting international sales.
Technical Risk. For example are not confident that a particular requirement is achievable given the constraint of existing technology.
Supply Chain.
Manufacturability risks.
Unit cost.
Product fit/Market.
Resource Risks.
Program-management.
Interpersonal.
4. Sorry! Don't Know this questions answer.
5. Some risks, once identified, can readily be eliminated or reduced. However, most risks are much more difficult to mitigate, particularly high-impact, low-probability risks. Therefore, risk mitigation and management need to be long-term efforts by project directors throughout the project.
Managing risks on projects is well worth the effort and keeps you in control of your project. Risk Management is a process for identifying, analyzing and responding to risk factors throughout the life of a project in order to provide a rational basis for decision making in regards to all risks.
6. Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer.
The surest way to prevent the potential loss arising from a certain activity is to completely avoid it. For example, if I want to avoid the possibility of having to pay for a stranger's medical expenses due to an auto accident, I could stop driving a car.
If you reduce a risk, you lessen the potential damage that could be caused by a hazard or danger. There are several strategies safety professionals recommend to help reduce the risk of weather-related accidents. The first step in risk management is to analyze exposures to risk and reduce the risk with safety measures.
Contingency planning is defined as a course of action designed to help an organization respond to an event that may or may not happen. Contingency plans can also be referred to as 'Plan B' because it can work as an alternative action if things don't go as planned.
Accepting risk, or risk retention, is a conscious strategy of acknowledging the possibility for small or infrequent risks without taking steps to hedge, insure, or avoid those risks.