Complete risk identification for a project of your choosing in the workplace. An example could be that AIS would like to implement a new data management system. Assess the risks associated with this project based on the risk identification template. Provide your findings to your assessor in a Power Point presentation.
What are the risk classifications for your industry sector?
Outline the three most common types of risk in a project in no more than 100 words each.
What actions should you take for the following risk classifications:
- Broadly acceptable.
What is the relationship between risk classification and the impact of risks?
How do you come up with a risk ranking system in your organisation?
What information would you need for a SWOT analysis for risk classification?
What questions might you include in a SWOT analysis for risk classification?
What is your organisation's process of identifying risk priorities?
What is the purpose of a risk register?
For a project you have been a part of in the past, complete a risk register and risk management plan.
What risk controls exist industry-wide for your organisation?
Give four examples of risk control strategies.
Outline the following risk treatment options in no more than 60 words each:
- Accept risk
- Mitigate risk
- Transfer or share risk
- Avoid risk.
Using the template below, fill out the treatment an identified risk in a past project.
Risk Classifications for Your Industry Sector
- Opportunity based: Opportunity based risk are risks which are very probable to happen but they bring opportunities with them if the firm is able to get through and mitigate the risk in an efficient manner. The risks if not mitigated can also cause huge damage to the operational activities of the firm. Hence it is important for a company to mitigate such risks within the operations of the firm.
- Uncertainty based: The risk which is uncertainty based is measured on the basis of the certainty on which it will happen. Hence it can be said that the risk can be either certain or uncertain. Uncertainty based risk are majorly uncertain to occur within the operational activities of the firm.
- Hazard based: Hazard based risk is measured on the impact which it will have on the organization's overall structure. It can be stated that if a risk will have huge effect or impact on a organization it is considered to be an hazardous risk and vice versa. In such case the impact is major parameter based on which the risk is defined.
- Explaining the key components in a risk management plan
The key components of risk management plan are as follows:
- Definition of the risk which is to be identified
- Assumptions over the risk which may be there
- A risk breakdown structure which is demonstrate the rocks which are available at all levels
- Probability and impact matrix to show on what will be the probability and impact of the risk which is due to occur in the future.
- Cost and schedule: The cost and schedule within which rims will be litigated is to be defined
- Risk register to monitor risks which is mitigated by the firm to correct errors and further risk identification
- Explaining industry sector risk which are available
Accidents and injury: In accordance to the Australian Work and Health Safety Law it is the responsibility of the employer to make the employee work safe in a safe working environment. The employer can be prosecuted under the WHS act in Australia for neglecting his responsibilities and duties.
Customer complaints: Consumer complaints against the company are protected by Federal Trade Commission, Attorney General and Australian Consumer Law. It can be said that the cubisme right is to e protect against risk like frauds, and undue obligations.
Injury: Under the Australian law the employer is responsible for compensating the worker in case of his injury while working in the firm not doing so will increase charges against the employer. Hence it is dealt with severe attention within the firm.
Damaging the environment: Damaging environment under the Australian Environmental law is treated as an unfair activity and the firm can be prosecuted for disturbing the environment’s ecosystem. Hence proper control measures should be taken by the firm to mitigate such activities.
- Explaining the difference between quantitative and qualitative risk management techniques
The qualitative and quantitative analysis method are different from each other because qualitative method and technique of risk management deals with identification of the rings which are present within the firm. Whereas the quantitative risk determines the overall risk which will be there through the identified risk.
- Identify project risks
- Determine at least one risk objective and standard, with input from stakeholders (staff/students) for migrating to new Learning Management System at AIS
The two risks which is there in context of the stakeholders in migrating to new learning management system is the is of system breakdown and wrong system implementation.
- Establish project risk context to inform risk management processes. Also discuss “Risk Appetite” of the project, in this section
The risk appetite of the firm ranges from mediocre to low hence in order to mitigate the above mentioned risks the management process of decreasing such risks will be opted so that the risk is minimized.
iii. Identify project risks (at least two) using valid and reliable risk identification methods
Through the use of direct identification it can be observed that abo9ve mentioned risk which is system breakdown and wrong system implementation is identified as this seem to have direct impact on the stakeholders.
- Classify project risks within agreed risk categories
The risk category in which the above mentioned risks come intop is change management risk as there is some changes which are to be brought in the firm through implementation of new system.
- Analyze project risks
- Determine risk analysis classification criteria and apply to agreed risk ranking system
In accordance to the risk ranking system the risk seems to be certain and can be catastrophic if it occurs in the firm causing huge impact on the overall system of the firm.
- Use risk analysis processes, within delegated authority, to analyse and qualify risks, threats and opportunities
The Three Most Common Types of Risk in a Project
The risk is related to the change of system with the company which has threats of system breakdown if not implemented properly which can stop operations of the firm mitigating the risk will have the opportunity for the firm to turn a new efficient system.
iii. Determine risk priorities in agreement with project client and other stakeholders and explain in migrating to the new Learning Management System at AIS what the risks priorities are
Priority for treatment
Wrong implementation of system
- Document risk analysis outcomes for inclusion in risk register and risk management plan.
- Identifying risks
Through the risk analysis made it has been clearly identified that system breakdown and work implementation of system is the major iks which are there. It can be said that the occurrence of wrong implementation of system is more in respect to the other risk.
- Estimate impacts
- Define responses or treatments or risk mitigation
The response will be to set a management which look at the implementation of the system and backup system which will help the firm to operate in case of system breakdown.
- Establish risk treatments and controls
- Identify and document existing risk controls
- To monitor system implementation system
- To have a backup system in chance of system breakdown
- Consider and determine risk treatment options using agreed consultative methods
- There will be management setup to monitor implementation of system
- There will be old system for backup in case of any emergency
iii. Record and implement agreed risk treatments
Recording will be done through management as well as the implementation of this risk management process will be implemented by the management to manage controls.
- Update risk plans and allocate risk responsibilities to project team members
The team leader will be assigned for monitoring and managing risk in the implementation as well as in the breakdown of the system.
- Monitor and control project risks
- Establish regular risk review processes to maintain currency of risk plans. This can be done during or after AIS migrates to the new Learning Management System.
In order to monitor risk property risk reports will be created by the management steps which will report the extent to which the risk has been mitigated and the probability of risk which is still her in change process.
- Regularly monitor risk environment to identify changed circumstances impacting project risks.
It can be said that through risk control measure it has been measured that the company has been able to mize the probability of risk which is there change in technological environment has helped the firm in minimizing the risk.
iii. Determine risk responses to changed environment
The risk responded to the change in the technological in a positive way as there was technological advancement the risk of system breakdown and wrong implementation system decreased.
- Implement agreed risk responses and modify plans to maintain currency of risk treatments and controls
It can be said that the old procedure of risk management will be maintained to maintain the risk management performance which will help the firm in capitalizing the risks which is available in the current situations.
- Assess risk management outcomes
- Review project outcomes to determine effectiveness of risk-management processes and procedures
It can be said that effectiveness of risk management plan was very accurate as it helped the firm to mitigate risks which was there in the company while changing the system. This shows the effect of risk management plan which was there in the company.
- Identify and document risk management issues and recommended improvements for application to future projects
There were no major issue in the risk management process ut the decision of having a backup system was constantly. It is recommended that the company should think of system which is cost efficient to increase the profitability of the risk management system. This will help the company in saving some cost to invest in future operations of the firm.
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