- The taxi booking application would be working ad desired if all the constraints and risks are understood in a proper way. Security risk and technological risks are the two major risks and if this risks are dealt with in a proper way then the application is surely like to succeed.
- The scope of the project has also been created in proper way so as to understand the basic objective of the project.
Which risk treatment method is this? Explain your answer.
The risk treatment method that is used for this is the change management. Change management generally refers to the systematic approach of dealing with the various type of transformation taking place in the goal, process or technologies in the project, change management is implemented so as to have an effective change of the requirements and also for controlling the changes and helping the people so as o adopt the changes. The change management strategy would be including a structures procedure for requesting the changes along with a mechanism so as to respond the changes and for taking follow-ups.
- Which risk treatment method should be used when a section of the project is too difficult for the company to perform? Explain your answer.
The risk treatment method that should be used for this particular section is the risk avoidance. This method generally involves the development of an alternative strategy which is having the highest probability of success. however, this type of method is associated with high cost. As the project is too difficult it is better to use to the risk avoidance strategy. This method is selected as this is associate with making attempts so as to minimize the vulnerabilities that are capable posing high amount of threats.
- You are managing a project which uses subroutines and libraries from a number of different sources. You are concerned that the project might accidentally contravene the law. So you ask the HR department to employ someone with specialist knowledge in the area. Is this an example of “Transference”? Explain your answer.
This hiring of the specialist so as to tackle with the contravention with the law is an example of transference. The main reason lying behind the acceptance of this as transference is that the risk of facing the laws would entirely be tackled by the specialist who is to be hired and not by any other participants of the project. So the risk is entirely transferred to the new personnel making that person solely responsible for any kind of regulatory or legal risks that are likely to occur.
- What is the difference between “Avoidance” and “Acceptance”?
Risk acceptance or risk retention generally refers to the process of accepting the risks that have been identified and are not taking any other actions which are needed in order to reduce the risks. This is done as the impacts of the risks can be accepted along with the possible consequences. This is one of the risk management strategy that is adopted in order to deal with the risks against which no actions no actions can be taken as it is acceptable. This type of mitigation technique is imposed if the risk is small is size and is not having the capability of posing a catastrophic impact upon the project.
Risk avoidance is the process of eliminating any kind of hazards, activities or exposure which are likely to have a negative impact upon the assets of the organization. This method is associated with seeking for ways of avoiding any type of events which are compromising in nature. Elimination of risk is rarely possible in this type of technique as this is the strategy which is designed for the purpose of deflecting as many threats as possible for the purpose of avoiding any type of costly or disruptive consequences that the damaging events would be having.
- Change management if planned properly would surely be helping in avoidance of any kind of risk arising due to changes in the project. Besides this there are also other risk mitigation techniques along with the avoidance like acceptance of the risk, mitigating the risk and transferring the risks which can be applied so as to tackle the different kind of risks.
- The difference between the avoidance and acceptance of the risks have been highlighted properly which helps in understanding the basic differences between this two risk management methodologies.
Bessis, J., 2015. Risk management in banking. John Wiley & Sons.
Glendon, A.I. and Clarke, S., 2015. Human safety and risk management: A psychological perspective. Crc Press.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative Risk Management: Concepts, Techniques and Tools-revised edition. Princeton university press.