can you compare and contract and advantage and disadvantage theseareas.Describe
ID: 3843861 • Letter: C
Question
can you compare and contract and advantage and disadvantage theseareas.Describe the following seven steps related to project risk planning: Risk Management Planning, Risk Identification, Qualitative Risk Analysis, Quantitative Risk Analysis, Risk Response Planning, Risk Monitoring and Control, Risk Management Register.
Risk strategy is applied on the basis of risk exposure as we know risks are not always bad sometimes they can bring some opportunities as well negative restore threats have a negative impact on the project objective and positive risks have a positive impact on the project objective therefore risks response strategies to manage positive and negative wrists are different.
AVOID
Risk avoidance is a risk impact response strategy whereby the project teams to eliminate the threat or prod protect the project from Impact.
It generally calls for alternate thing the project management plan like you make changes in the scope or design or even the implementation plan.
Risk identified at the early stage can be avoided by improving communication or acquiring skills.
Eliminates the probability of risk events and thus remove wrist from the risk register.
Implemented in critical risk which have a substantial impact on the viability of complete projects project teams generally use this is the first response strategy for critical versus.
The ideas to try to avoid risk as many critical risk as possible.
MITIGATE
Risk mitigation is the risk response strategy whereby the project teams to reduce the probability of occurrence or impact of risk
Reduces is the probability or impact of a threat to bring it within the acceptable threshold limits.
A Hands-On approach to lower the critically risk.
Project team implements mitigate strategies to critique risks.
Normally involves modifying the project management plan like adding activities and project schedule or any scope to the project.
It does not remove risk from the risk register instead brings down the criticality level of the given risk.
TRANSFER
Risk transfer is a risk responsive strategy whereby the project team shifts the impact of a threat to the third party together with the ownership of the response.
The responsibility of the risk it's transferred to another party however does not eliminate the risk.
Risk transfer requires to pay a risk premium as another party is managing their risk.
Involves tools like Insurance performance bonds warranties guarantees, etc.
You may identify secondary risk while doing the transfer. For example transfer of risk guarantees that you may identify new risk it what if vendor default on terms of guarantee.
Used normally in cases of less critical risk.
ACCEPT
Risk transfer is a risk responsive strategy whereby the project team decides to acknowledge a risk and not take and action unless the risk occurs.
Here, it is very important to understand that risk acceptance can be either active or passive.
In passive acceptance project team decide to take care of risks as they occur. On the other hand, the active acceptance asks the team to establish the contingency reserve, including amounts of time, money, or resources to handle the risks as it occurs.
Adopted for non-critical risk since it is not feasible or cost-effective to avoid mitigate or transfer all risk.
The identified risk remains in the risk register and there is no change in its risk exposure.
In the case of the active acceptance, the team identifies the warning signal for the given risk and implements that contingency plan in time.
Risk strategy is applied on the basis of risk exposure as we know risks are not always bad sometimes they can bring some opportunities as well negative restore threats have a negative impact on the project objective and positive risks have a positive impact on the project objective therefore risks response strategies to manage positive and negative wrists are different.
AVOID
Risk avoidance is a risk impact response strategy whereby the project teams to eliminate the threat or prod protect the project from Impact.
It generally calls for alternate thing the project management plan like you make changes in the scope or design or even the implementation plan.
Risk identified at the early stage can be avoided by improving communication or acquiring skills.
Eliminates the probability of risk events and thus remove wrist from the risk register.
Implemented in critical risk which have a substantial impact on the viability of complete projects project teams generally use this is the first response strategy for critical versus.
The ideas to try to avoid risk as many critical risk as possible.
MITIGATE
Risk mitigation is the risk response strategy whereby the project teams to reduce the probability of occurrence or impact of risk
Reduces is the probability or impact of a threat to bring it within the acceptable threshold limits.
A Hands-On approach to lower the critically risk.
Project team implements mitigate strategies to critique risks.
Normally involves modifying the project management plan like adding activities and project schedule or any scope to the project.
It does not remove risk from the risk register instead brings down the criticality level of the given risk.
TRANSFER
Risk transfer is a risk responsive strategy whereby the project team shifts the impact of a threat to the third party together with the ownership of the response.
The responsibility of the risk it's transferred to another party however does not eliminate the risk.
Risk transfer requires to pay a risk premium as another party is managing their risk.
Involves tools like Insurance performance bonds warranties guarantees, etc.
You may identify secondary risk while doing the transfer. For example transfer of risk guarantees that you may identify new risk it what if vendor default on terms of guarantee.
Used normally in cases of less critical risk.
ACCEPT
Risk transfer is a risk responsive strategy whereby the project team decides to acknowledge a risk and not take and action unless the risk occurs.
Here, it is very important to understand that risk acceptance can be either active or passive.
In passive acceptance project team decide to take care of risks as they occur. On the other hand, the active acceptance asks the team to establish the contingency reserve, including amounts of time, money, or resources to handle the risks as it occurs.
Adopted for non-critical risk since it is not feasible or cost-effective to avoid mitigate or transfer all risk.
The identified risk remains in the risk register and there is no change in its risk exposure.
In the case of the active acceptance, the team identifies the warning signal for the given risk and implements that contingency plan in time.
Explanation / Answer
A risk has a cause and, if it occurs, a consequence. Risk identification is an iterative process. (Just like core process). Objective is to decrease the probability and impact of negative events and vice versa.
RMP: it is input to cost and time estimating, schedule development and cost budgeting.
I/P: EE factors (attitude towards risk and tolerance, which can be found in policy statement or revealed in actions), OP assets, Project scope statement, PMP
TT: Planning meetings and analysis: Risk cost element and schedule activities will be developed for inclusion in the project budget and schedule respectively. Responsibilities will be assigned; templates will be tailored for use later.
Output:
Risk Management Plan – Describes how Risk Management will be structured and performed, it includes
Risk Types – 1. Business (Gain or Loss) 2. Pure Risk (Only Risk of Loss)
Attitude about Risk – Should be made explicit, Communication about risk should be honest and open. Risk response reflects organizations perceived balance between risk taking and risk avoidance. Some one who does not want to take risks is said to be Risk Averse.
Tolerance and Threshold – Tolerance are areas of risk that are acceptable or unacceptable. A threshold is the amount of risk that is acceptable. You use this information to help assign levels of risk on each work package.
Risk Identification
IP: EE Factors, OP assets, project scope statement (assumptions), risk management plan(R&R, RBS, risk provisions), project management plan
Tools: Documentation reviews, info gathering techniques (Brainstorming, Delphi tech, interviewing, RCA, SWOT); Check List Analysis – based on Historical information of previous similar projects. The lowest level of RBS is used as Risk Checklist; Assumption analysis; Diagramming tech: C&E, system/process flow chart, influence diagram,
OP: Risk Register
Delphi tech: is a way to reach a consensus of experts, questionnaire is sent to solicit ideas and responses are summarized and re-circulated to the experts. Consensus is reached in few rounds. It helps to reduce bias in the data and keeps any one perform fro having undue influence.
Qualitative Risk Analysis: focuses on prioritizing risks using probability and impact of the risk as well as time frame and risk tolerance. It also leads to over all risks of the project. It is also known as Risk assessment.
IP: OP assets, project scope statement, RMP, Risk Register,
TT: Risk probability and impact assessment, Probability and impact matrix, Risk data quality assessment, Risk Categorization (based on common causes, using RBS/WBS/Phases), Risk urgency assessment.
OP: risk register (updates)
Quantitative Risk Analysis: it assigns numerical ranking to the prioritized risks primarily uses Monte Carlo Simulation and Decision Tree Analysis. It should be redone after RRP and RMC to asses risk reduction.
IP: OP Assets, Scope Statement, RMP, Risk Register, PMP (SMP, CMP).
TT:
OP: Risk Register (updates)
Risk Response planning: it creates owner for each agreed to and funded risk. Risks responses are developed in risk planning and risk response planning stage
IP: RMP, Risk Register
TT: Strategy for negative risk (avoid, transfer, mitigate), Strategy for positive risk ( exploit, share, enhance), for both acceptance, contingent response strategy,
OP: Risk Register (Updates), PMP (updates), Risk related contractual agreement.
Risk Management Control
Process of identifying, analyzing and planning for newly arising risks, keeping track of identified risks and those on the watch list, reanalyzing existing risks, monitoring trigger condition for contingency plans, monitoring residual risks and reviewing the execution of the risk responses and their effectiveness.
IP: RMP, Risk Register, App CRs, work performance Info
TT: Risk reassessment, Risk Audits, Variance and trend analysis, Technical performance measurement, reserve Analysis, Status Meetings (RM is an agenda)
OP: Risk register (updates), CRs, recommended CAs and Pas, OP asset (update), PMP (update)
Risk Register – (O/P of Risk Identification)
Updates after Qualitative Risk Analysis
Updates after Quantitative Risk Analysis
Updates after Risk Response Planning
Risk Response Planning Techniques
Strategies for Negative Risks or Threats
Strategy for positive Risks or opps
Strategy for both
Residual Risks – Risks that are expected to remain after planned responses have been taken, as well as those have been deliberately accepted.
Secondary Risks – Risks that arise as a direct outcome of implementing a risk response.
Recommended Corrective Actions – For Risk monitor and Control include Contingency plans and workaround plans.
Workaround Unplanned response to negative risk events (requires to be impacted by the risk first).Work around plans are not initially planned but are required to deal with emerging risks that were previously unidentified or accepted.
Contingency Plan Planned action steps to be taken if an identified residual risk occurs. (e.g. developing alternative activity sequences). It is for the risks which are accepted.
Contingency Reserve: calculated based on the quantitative analysis of the project and organization’ risk thresholds.
Fall Back Plan: It is plan executed when contingency plan is not effective.
Risk database – A repository that provides for collection, maintenance, and analysis of data gathered and used in the risk management processes.
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