Question

I would like you to dig a little deeper on how you analyze the risk. We attempt to list dozens of risks to a project. The larger and more complicated the project the more the risk. How would you analyze the risk to determine which ones to pay more attention to than the others?

Answer 1

There could be many risks associated with a project but all of these risks might not be of equal intensity and all of them might not tend to bring complexities into the project implementation process therefore it is important to first identify the major risks that have the potential to disrupt the smooth flow of project process so that these risks which are most impactful can be addressed first.

In order to critically analyse the risks, classifying them into three important categories viz, Critical, important and average which will help to set priorities for addressing the risks that are most critical first followed by others.

In order to determine which ones to pay more attention to, than the rest, the degree to which a particular risk of a definite nature will have most consequences on the project functioning will be assessed in terms of their area of impact and outcomes if not addressed within a specific period of time. Risks will be assessed in accordance to the project life cycle phases in order to address the each while moving towards that particular phase. This will help to address risks through breaking up them thus also leading to efficient addressal.

The another most helpful and important way of risk analysis will be studying the nature of the risk and putting them in most relevant categories for example the technical risk, internal risk, external risk, organisational risk, personnel risk, physical risk etc. This will help to recognise which risk can prove to be a problem through considering which category is most significant for project success.

Project objective can also help in making risk analysis more appropriate and meaningful as it will highlight and reflect the various short term and long term goals which guide the various tasks and activities of project and hence help in identifying the hurdles, threats and complexities which might arise out of nowhere while accomplishing these goals and tasks.

Risk exposure and risk occurrence are two important concepts in risk analysis which will help to treat and contain the recurring risk which can threaten the project success.

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Thanks dear student... Hope this will help..

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