Question

DISCUSSION QUESTION 5-1

MB670 Project Management

Lesson 5: Risk Mitigation

Discussion Question 1 (50 points)

Describe what needs to be done to manage risk on a project. When should this be done? How can a risk assessment matrix help in this process? What risks for a project have the highest priority? Does the priority for a risk change as the project progresses? (50 points)  (A 2-page response is required.)

Answer 1

Describe what needs to be done to manage risk on a project

Risk Management is a process which involves risk assessment and risk mitigation plans.

The 4 steps involved are:

• Risk Identification: This process involves creating checklist to understand the potential risk that is included in a project. Making checklist can be done by identifying the main source of risk. The project experience within the company, the past experience -all these combine together to form the checklist.
• Risk Evaluation: After the risk are identified, then evaluate the risk based that the risk event will occur and potential loss associated with the event.
• Risk Analysis of equipment delivery: In this case analysis would be made to see if any equipment did not arrive on time so that the project could not continue.
• Risk Mitigation: After going through above two processes, the team makes a plan to reduce the impact of an unexpected event.

When should this be done?

Risk cannot be predicted. Its occurrence is untimely. It can take place any time, whether at the beginning of a project or middle of a project or at the peak and final stage of a project. Hence a project manager should be ready at any time.

Hence a project manager can draw one or two plans or probabilities of how to take care of a situation if a breakdown takes place.

How can a risk assessment matrix help in this process?

It refers to a project management tool that is used to view quickly and understand the basic risks involved at different stages.This can be made in the form of a simple table. The preparation of this matrix is time consuming by involving different steps like data gathering, determining the risk, probability and impact levels of data, making priorities, understanding consequences etc.

What risks for a project have the highest priority ?

The risk that have higher priority are the ones that fall in critical situation because as a project manager we have to assess the impact that causes effects on the whole project. As we fulfill each priority and go forward, our priorities too can change.

Does the priority for a risk change as the project progresses?

Always priorities change as soon as project progresses. Thus our risk assessment matrix too changes with respect to next level of work involved, responsibilities involved etc.

For example: When we build a structure, the priority is to first put a foundation for the structure rather than selecting the designs of granite for flooring. Selecting designs of granite can be done at the end once the whole structure is built as per the plan.

Hence, we can come to a conclusion that the priorities change with respect to the progression of project.