Risk2 Essay Example

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    612

6.0 Risk valuation

Risk management is an important concept in the management of this project as it helps to ensure success for the client according to End Alliance. Risks can be classified into desirable and undesirable for the entire project and the involvement of stakeholders. Risks can be identified in various ways like deviation from the expected results and relevance of occurrence to possible events and combined responses between the consequences and the likelihood of occurrence (Standards Australia 2009). Risk assessment helps an organization to set strategies which can help to achieve the organization’s objectives, better governance and encourages proactive management of the organization. In this section, the main risks will be identified and the mitigation process which can be used to manage the risks. It will also discuss the main stakeholders in the project and their expectations.

6.1 Stakeholder identification

Stakeholders are the groups whose activities affect the operations of the company or the groups which are affected by the company’s operation. They complete the lifecycle of the company’s operations and they also help to determine the success of the organization depending on their efforts and their relationship (Standards Australia 2009). The involvement of the stakeholders in the project depends on the complexity and size of the project as noted by Eng-Alliance. The risks vary according to the differences of the stakeholders and their expectations on the as well as the returns expected from the project. The below table indicates the key stakeholders of the project and their respective interests.

Shareholders

Project’s Interest

Eng-Alliance

(group 105)

They are responsible for the success of the project. They convince the management of Hipowa that they are qualified to handle the project and produce best results by proving their competency.

Coordinators of Conference

They are responsible for providing useful important information to the audience. The education provided depends on the seminar structure as provided by Eng-Alliance. They expect cooperation from the audience.

Attendees of Conference

They expect that they are provided with adequate information during the seminar. They also expect to get adequate information about the management of the information.

Examinee

Expects that Eng-Alliance provides adequate information and also provide information back to the Eng-Alliance. This will help to develop competent project management techniques.

Table 12: Stakeholders

6.2 – Risk Appraisal and Alleviation

Basically there are two ways in which the risk can be alleviated. The first one is to reduce the risk and the second one is to ensure reduce the impact of the risk if it occurs on the project. Risks can be prevented by testing and prototyping the issues which can affect the progress of the project (Standards Australia 2009). The impact of the risk can be reduced by transferring the risk and retaining the risk. In appendix B you will find the complete appraisal of risks and their mitigation.

The graphical presentation below indicates the risk assessment as adopted by AS/NZS ISO 3100:2009.

Risk2

Figure 1: Risk management Process (AS/NZS ISO 3100:2009, pg., vi)

Effectiveness of the risk management techniques

The risk management techniques applied by the organization pare effective since they have been applied initially and helped to reduce the risks. The strategies are cost effective and are reliable hence they are effective in the management of the identified risks. These techniques have been tested and found to be effective in their application (Standards Australia 2009). In addition, risk transfer has been the most effective strategy for risk management since the strategy helps to restore the project to its initial position once the risk has occurred thus the strategies are effective.

References

Standards Australia 2009, AS/NZS ISO 31000:2009, Risk management: Principles and guidelines, standards, Retrieved 3rd May 2014 from http://sherq.org/31000.pdf