Question

Please answer all

1.Why might an organization or state agency be opposed to developing and implementing a thorough risk management process?

2. Describe the relationship between the likelihood of a risk event occurring and the cost of fixing the risk event as a project proceeds through its life cycle

Answer 1

1.in this world of turbulence where every sector in the market is not in a state which we can easily forecast. for every organization, it is necessary to examine the overall process involved in it. any organization while growing in this turbulence market come across several risks which they try to minimize and try to implement the different technique for the same reason. before handing straight to why they avoid, we need to understand what is risk management actually means. risk management is a process of identifying, monitoring, and managing the potential risk which occurs in the process of growing and try to minimize there impact on the business. there is three step in this process:1 risk assessment &analysis 2.risk evaluation 3. risk treatment & response.

now the question arises why they don't prefer to develop the business through risk management process, the main reason is that this process needed to control the management effectively and systematically as it is a complex process which required lots of calculation work by that the whole business process needed extra time to complete a set of task on time.as risk management process required lots of time in it mostly agency or organization try to avoid it, because the cost involved in this process is more as compared to the removal of risk. even if the risk is minor and required less time and money but still we follow the same process as we needed for the major risk.

2. a project when developed, it goes through the life cycle of the product from early stage to maturity stage. every stage have there own set of process and set of minor risk which may occur due to some minor mistake which normally people do. as the risk involved in every way of life cycle, we prefer risk management process sometimes. there is a relationship that occurs between the risk take place and the cost involved o fix it. as I said in earlier point if the risk is minor or major the cost involved in the risk management process is same because we need to set the whole process and it doesn't affect by who big the problem is. so cost is there while developing the whole process. as the risk occurs in the cycle the cost varies according to the risk impact and risk damage if any, this is don't when we already perform the task which effects the process of product making.