RISK ASSESSMENT, TREATMENT AND CONTROL Essay Example

Risk Assessment, Treatment and Control

Student:

Question 1

List and briefly describe nine options available to the project manager when faced with a set of risks.

As noted by Newton (2015), the following options may be relevant to a project manager when faced with a set of risks that pose a threat of offer a hidden opportunity for the organisation.

1. Changing the scope of a project so that the concerned entity is able to eliminate the presence of risk

2. Withdrawal from a project in order to entirely eliminate the occurrence of the risk given the fact that the expected benefits are far outweighed by the risk impact

3. The manager may transfer the risk to an outsourced contractor who is bears the cost of the risk in the event that it occurs.

4. The manager may also take out insurance to compensate the organisation in case the risk occurs.

5. The manager may develop a contingency plan to reduce the potential consequences if the risk occurs. These may include recovery and backup plans.

6. The manager may also devise strategies to reduce the probability of the risk occurring. Such strategies may include regular training of staff, systems testing and choosing stables supply sources.

7. The manager may decide to accept the likelihood that a risk will occur and have an impact. However, acceptable risks should be less likely to occur and have a significant impact. It should as well be technically or economically limiting to explore an alternative solution.

8. It is also possible to exploit some risks as opportunities by employing resources and expertise to neutralise them and benefit strategically in the process

9. Some risks might as well be shared between an organisation and its strategic partners in order to reduce the impact in case the risk occurs. This should particularly be the case if both parties expect to share the profit of an enterprise

Question 2

Search the internet for an example of a project risk management strategy template (Make a note of where you got it from). Briefly describe whether you think it would be useful for your assignment, and if not, how you think it might be improved.

The following risk management template is available on the Tasmania’s government online portal. Tasmania is an island state of the Commonwealth of Australia. Its e-government portal is used to support the government’s strategic initiatives particularly in ICT sector. The template can be accessed using the following link: https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjJmcif7LzTAhUFAcAKHe-DCeUQFghCMAA&url=http%3A%2F%2Fwww.egovernment.tas.gov.au%2Fproject_management%2Fsupporting_resources%2Ftoolkit%2Frisk_management%2FRisk_management_plan_template_and_guide.dot&usg=AFQjCNFYDRoHX0U8X3myUzVdlIQLBjP34g&sig2=H3OM3FGku4oFJmpDr5Y15Q

The template will be very useful to my assignment as it has a clear grading system for a risks seriousness and likelihood. This will make it possible to assess the risks degree from low, medium and high along the dimensions of likelihood to happen and estimated impact on the project. It is possible to categorize risks in five groups (A, B, C, D, and N). With these grades, the appropriate course of actions will be taken to remedy the risk situation.

The template further provides for a table detailing the risk treatment plan. The table has provision for identification of a risk, its consequences on the project, relevant, timeline from review to mitigation actions, and people responsible for mitigation actions. The risk template plan also identifies the grade change if any that concerns a particular risk. This means it’s possible to evaluate whether the project has been successful at addressing a particular risk since it was last reviewed. However, the template can be improved by adding a provision for quantifying the risks as it will help me determine the monetary value of a risk so as to consider remedies such as sharing, insurance and contracting third parties.

References