DU Keystone Conference: Risk Analysis

DU Keystone Conference: Risk Analysis

Introduction

Risk has been refers to the uncertainty that might occur anytime. The probability of any events if arises would either have positive or negative effect on the project. When a person plans any project, there are possibilities of unforeseen risk. Project risk management is concern with the confidence of significant during the worse situation and the cost associated to it.

Risk management embraces the activities dealing with risks after they are identified and evaluated. Risk management, as well as risk assessment and risk communication, are part of the comprehensive term of risk governance, which is a systematic approach toward coping with risks under participation of all relevant actors (government, companies, the scientific community, nongovernmental organizations, and the general public). Risk management starts as soon as there is sufficient evidence for hazards identified and evaluated by risk assessment.

Discussion

Steps of Risk Analysis

When determining the risk of a project, the manager flow certain steps in order to fully get aware of t he risks that might arises.

Determining Risk

While determining the risk there are three key features that should be take into the consideration.

The consequence inducing the risk.

The probability of the consequence encountering.

The affect on the plan if consequence arises.

When planning a project it is not possible to determine the each and every risk that is associated with the project. There are varieties of risks that can occur on the project and a manger cannot anticipate all of them. What a manager needs to do is that, he should select the events that have an ultimate impact on the project.

Risk Probability

Though we are able to indicate the risks, but we do not possess the accurate statistic regarding their occurrences. It is unbelievable that we can verify their accurate probability. The subjective scale of different measurement is used in order to determine the probability. The focus is on those consequences that a manager expected that will occur.

Risk Affect

To see the risk affect on the project that is to see the impact on the scope, time, resources and quality characteristics of the project plan. However, these things varies from project to project, but the similar three point scale of high, medium and low is used for anticipating the risk on the project.

Purpose of determining the Risk

The purpose of determining the risk is to eliminate the risk from the project. The importance of determining the risk is to the deliver the project plan to the customer in such a way that satisfied him. When a customer sees that the project is secure from the potential risk, it will attract him and manager can encounter a good customer. However, they are satisfied that during certain circumstances when risk arises, the following steps would be taken in order to mitigate the damages or events.

Risk assessment

The second step is the assessment and evaluation of the risk management options. The criteria of this assessment are effectiveness, efficiency, and minimization of external side effects, sustainability, fairness, political and legal implementation, and ethical ...