Question

Sometimes risk workshops generate so many risks that it is not possible to assess all of them, while on other occasions only a small number of risks are identified and in-depth assessment is possible. What are the advantages and disadvantages of these two scenarios? Provide an initial posting of at least 300 Use formal writing using the technical language of Risk Management. Use APA formatting. Add new insights, different examples from your experience, or from other sources.

Answer 1

In first scenario, when it is difficult to all assess all risks then it is good to categorize all the collected risks during the risk workshop. The categories generally considered are ‘general risks’ and ‘specific risks’. In this scenario, it is always good to focus more on specific risk to the business or project by performing risk assessment considering the potential risk and its impact. Sometime the checklist is used to evaluate the likelihood of the event. Most of the organizations keep the past project risk register to re-use in future, which helps in determining the specific risks and expand the team thinking. Therefore, a risk breakdown structure can be used.

The advantage in this scenario is that the team can identify the known risks but at the same time due to the more numbers if risks it becomes restrictive for the team to think through with the creative ideas to mitigate the risks or rather think about a contingency plan. The disadvantage lies among the ability of not determining the unknown risk.

In the second scenario, due to the lesser number of risks, it becomes easy to evaluate the risks based on the probability and influence due to the same. Not every risk is same, some occur more frequently or some not. Therefore, the severity becomes very important when actually assessing the risk considering the probability of occurrence.

The advantage in this scenario is availability of in depth risk information but at the same time not sure on the degree of coverage of risk i.e. which may have negative impact. For example, considering new technology based project in this scenario always have chances of failure due to unknown factors, unexpected issues, etc. Hence, in both the scenario it is good to have risk evaluation in place at least by categorizing (or prioritizing) the likelihood and impact as high, medium and low, along with the risk mitigation plan considering the risk avoidance, reduction, sharing and transfer strategies.

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