Consider the below two scenarios and analyze the relationship between enterprise

Question

Consider the below two scenarios and analyze the relationship between enterprise and project risk management concepts and their associated impact on the overarching goals of an organization.

Scenario #1

You work for a company that strives to be first to market with new products. As Chief Risk Officer (CRO), you have assembled a risk team to assess risk on the release on a new product. The risk team has identified 62 risks associated with the product release. They have also determined what would trigger the risks and have ranked them on a risk rating matrix, tested their assumptions, and measured the precision of the data used. The team is wrapping up the risk assessment, preparing their final reports to leadership, and has been given the go-ahead for production to start. No one notices that you have not included the participation of the key stakeholders in the risk assessment.

Scenario #2

You work for a company that feels it has a social responsibility to its customer base. You have been appointed as the new project risk manager of an unusually large and complex project. Because this project is business-critical and highly visible, the executive management staff has told you to analyze the project’s risks that may impact the organization’s social responsibility to the consumer and to prepare mitigation strategies for them as soon as possible. The organization has adopted standardized risk management procedures, but they are seldom followed, and they have a history of handling risks poorly. The project’s first milestone is in one week.

Question:

Identify which project will have the greatest negative impact on the organization. Clearly support ther answer with reasons why the scenario chosen is the worst situation.

Explanation / Answer

Between the given scenarios, the first one will have the greatest negative impact on the organization. This can be considered due to the reason that the primary stakeholders are the first responsibility of any business and are just as important as the social responsibilities of the company if not more. While, the second scenario also has some concerning factors associated with the strategies that are utilized in the execution of the risk assessment policies, but, they are not as bad as the first case where there are high-risk factors associates and measured without the impact that it would have on the reputation of the company as well as its responsibilities to its stakeholders. Even though the proper risk mitigation strategies can be followed, without the proper data, no risk can be fully realized and essentially dealt with properly.

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