you will develop a 500-750 word comprehensive outline that communicates a risk m
ID: 126108 • Letter: Y
Question
you will develop a 500-750 word comprehensive outline that communicates a risk management topic. The outline is required to include a minimum of three objectives to discuss what your group considers to be key or core risk management elements that pertain to the point, or element, you selected to profile.
Required sections to include in your outline are listed below. If your topic requires additional sections, include them as well:
Introduction.
Objectives: Three objectives you intend to address in the proposed risk management educational session.
Rationale: Rationale for each objective (i.e., Why are these three objectives key or core to the risk management issue?).
Supportive Data: Data to support the need for the proposed educational session.
Implementation Strategies: How will you implement the proposed educational session?
Evaluation Strategies: What tools will you use to evaluate the proposed educational session?
Challenges and Opportunities: Ideas or suggestions about areas of focus regarding risk management the organization could or should address moving forward into the future?
Explanation / Answer
RISK MANAGEMENT PROCESS
OBJECTIVES
Managing risks on projects is a process that includes risk assessment and a mitigation strategy for those risks. Risk assessment includes both the identification of potential risk and the evaluation of the potential impact of the risk. A risk mitigation plan is designed to eliminate or minimize the impact of the risk events—occurrences that have a negative impact on the project. Identifying risk is both a creative and a disciplined process. The creative process includes brainstorming sessions where the team is asked to create a list of everything that could go wrong. All ideas are welcome at this stage with the evaluation of the ideas coming later.
Risk Identification
A more disciplined process involves using checklists of potential risks and evaluating the likelihood that those events might happen on the project. Some companies and industries develop risk checklists based on experience from past projects. These checklists can be helpful to the project manager and project team in identifying both specific risks on the checklist and expanding the thinking of the team. The past experience of the project team, project experience within the company, and experts in the industry can be valuable resources for identifying potential risk on a project.
Risk Evaluation
After the potential risks have been identified, the project team then evaluates the risk based on the probability that the risk event will occur and the potential loss associated with the event. Not all risks are equal. Some risk events are more likely to happen than others, and the cost of a risk event can vary greatly. Evaluating the risk for probability of occurrence and the severity or the potential loss to the project is the next step in the risk management process.
Having criteria to determine high impact risks can help narrow the focus on a few critical risks that require mitigation. For example, suppose high-impact risks are those that could increase the project costs by 5% of the conceptual budget or 2% of the detailed budget. Only a few potential risk events met these criteria. These are the critical few potential risk events that the project management team should focus on when developing a project risk mitigation or management plan. Risk evaluation is about developing an understanding of which potential risks have the greatest possibility of occurring and can have the greatest negative impact on the project.
Risk Mitigation
After the risk has been identified and evaluated, the project team develops a risk mitigation plan, which is a plan to reduce the impact of an unexpected event. The project team mitigates risks in the following ways:
Each of these mitigation techniques can be an effective tool in reducing individual risks and the risk profile of the project. The risk mitigation plan captures the risk mitigation approach for each identified risk event and the actions the project management team will take to reduce or eliminate the risk.
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