Risk Management: Selecting and Evaluating Risks

Instructions for Selecting and Evaluating Risks

In reviewing the three (3) scenarios presented before, select one scenario to research further andgenerate a list of risks for scenario.Please provide this list of risks in a risk register template.Note: Expectations are that you have at least 20 - 25 risks listed when you are done with this process.

In addition, you should try to identify at least 1 opportunity. The opportunity should be CLEARLYidentified from the rest of the risks.

 A risk matrix properly configured needs to be used consistently and provided as reference to supportthe work.

 Risks should be clearly stated and actionable. A helpful approach is to think in terms of an “if condition”,then consequences (i.e. if the vendor does not supply us with XXX, we will not be able to complete xxxportion of the work). Remember that a lot of these risks will develop based on assumptions you will make around the scenario (Something for the purpose of planning that you believe to be true, real, and

certain until proven otherwise).Each risk should be categorized but you do not need to create a RBS.Once identified provide for each risk a numeric assessment of high, medium, and low in terms ofprobability and impact based on your matrix. Your matrix should also be provided as a reference for thework. Based on the results of this assessment, you can then order or prioritize the risks in your register.

2. Your risk register will now contain a prioritized list of risks for the scenario that you chose to evaluate. Forthis assignment this is where your analysis will end. You DO NOT need to complete the rest of the riskregister fields.

3. In a separate document, please answer the following questions:(Please provide examples, samples and clear references when you are doing the research on thesequestions. The responses for these questions are to be researched and not based on your opinion alone.)

a. So far in the class, we have reviewed several processes based on the PMI® Body of Knowledgeassociated with Risk Management what is the most important process? Why?

b. The first role of qualitative risk analysis is to provide us with the means of prioritizing the risks. Whyis it important to ensure that you have a list of prioritized risks? Please provide explanationsupported by research.

c. When deciding on a probability and impact matrix, where does one get the information to generateit? Explain.

d. Why is it often important to use graphical representations when communicating risks to yourstakeholders? What is the most common graphical representation used in risk management?