- The forth part is the risk monitoring to determine how effective the risk responses are. RISK ASSESSMENT METHODOLOGY - Risk assessment process -- Risk models define the factors such as threat, vulnerability, likelihood, impact, etc. to be assessed. Definitions of each factor needs to be defined before assessing to clearly define the risk. -- Assessment approach can be quantitative, qualitative, or semi-qualitative.
Particularly Earned Value Management has been used to estimate cost and time to complete, identify cost and schedule impacts of known problems, accurately portray the cost status of a project, trace problems to their sources, portray the schedule status of a project, provide timely information on projects and identify problem areas not previously recognized (Kim and Duffey 2003). The description and derivation of Earned Value Management elements have been comprehensively described in many sources. (PMI, 2005) classifies the terminology into two categories: key parameters of Earned Value Management including Planned Value, Earned Value and Actual Cost and Earned Value Management measures (variances, indices and forecasts). Additionally the evolution of Earned Value Management concepts raised
Some of the strategies to deal with such risk include; avoid, mitigate, accept, and transfer the risk (Usmani, & Liang, 2017). Avoiding the risk means eliminating the impact of the risk on the project. For instance, one can move outdoor activities to a later date to avoid the effects of anticipated rain. Mitigating the risk means to reduce the probability of the risk happening or minimizing its impact. An example of risk mitigation would be to find a replacement for an employee
For every response strategy, you need to define response actions and for every recovery strategy, you need to have associated recovery actions. This will help you define the high-level action steps. A detailed DR plan must include – - Roles and Responsibilities: Details about DR recovery team members, their contact details and spending allocation in case equipment need to be purchased. - Incident Response: Provisions to become aware of an out-of-normal situation, assess the situation for damages, determine the damage severity, try to cover the disaster to bring it under control, and notify the key
Well one that is understood and requires minimal communication would do well outsourced. Strategic control focuses on a degree of loss that would occur if the relationship with the partner was severed (Chase & Jacob, 2013, p.444). The last aspect that needs to be examined is the amount of intellectual property that could be lost through the partnership. Evaluating the impact of moving an activity to an outside source will help aid in the decision making
There are several steps to consider such as planning on how to approach the risk. Implement strategy moving forward. Identify causes to the potential risk in the first place that occurred then document the results found and analyzing the risk occurrence by asking how likely this will impact the business. Determine a response by mitigating the risk. Monitor and control already noted risk by asking a question has the risk pass it tolerance threshold.
Risk Risk management is the ongoing process to identify, analyze, assess, and treat loss exposures and monitor control and financial resources to mitigate the adverse effects of loss. Acceptable risk The degree of potential losses that a society considers acceptable given existing social, financial, political, social, technical and environmental conditions. In engineering terms, acceptable risk is likewise used to evaluate and characterize the structural and non-structural measures that are required to reduce possible damage to individuals, property, services and frameworks to a chosen tolerated level, as indicated by codes or "accepted practice" which are based on known probabilities of hazards and other factors. Probabilistic Risk Assessment
The first step is determining the risk factors (such as financial, technical, execution, legal risk) that can significantly affect the project; this could be done through "brainstorming meetings, expert opinion, history, multiple assessments". Once the risk factors have been identified, the project manager has to determine the potential impact and probability of these risk factors. After that, the project manager has to seek strategies for mitigating risks with significant impact on the project execution and outcomes; this could be done via multiple strategies such as accepting the risk, minimizing risk, sharing risk, or transferring risk depending on the situation. The final step is to document the knowledge base for upcoming projects based on lessons learned from the current project to avoid mistakes previously