Reflect on the assigned readings for the week.

1) Identify what you thought was the one most important concept(s), method(s), and/or specific item that you felt was worthy of your understanding from the Key Terms on page 262. 

2) Discuss in detail what the term means, how it is used and other pertinent information about the selected term including a specific example, application or case study from your own experience. Be specific; not vague or general.

3) Provide a detailed discussion of why you thought this selection is important and how it relates overall to risk management.

Respond to the post of at least two peers, using 100 words minimum each.

Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.

Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review. Do not use lists or bullet points. This will result in substantial loss of points in the Substance section and the Requirements section.

Your initial posting should be completed by Thursday at 11:59 p.m. EST. All peer replies must be completed by Sunday at 11:59 p.m. EST.

Your posts must be substantive and demonstrate insight gained from the course material. A peer response such as “I agree with her,” or “I liked what he said about that” is not considered substantive and will not be counted for course credit. A blank post just to review other submissions will not be tolerated

Responses:

response for sri surya:

Hi everyone,

To begin with, the chapter “Risk Management” covered several topics and I want to discuss about few important topics. Out of the entire concepts, I personally felt that the risk breakdown structure is more vital in the risk management concepts. Risk Management, which recognizes the capacity of any project to run into trouble, is defined as the art and science of identifying, analyzing and responding to risk factors throughout the life of a project and in the best interests of its objectives. Pinto, J. K. (2019). Risk and opportunities are opposite sides of the same coin – opportunity emerges from favorable project uncertainties, and negative consequences from unfavorable events. Pinto, J. K. (2019). Risk identification often produces nothing more than a long list of risk, which can be hard to understand or manage. Hillson, David.97. For risk management, this can be achieved with a Risk Breakdown Structure (RBS) – a hierarchical structuring of risks on the project. Hillson, David.97.

Risk Breakdown Structure (RBS) is defined as a source-oriented grouping of project risks that organizes and defines the total risk exposure of the project. Pinto, J. K. (2019). These concerns can lead a firm to adopt either of the two actions such as defensive- employing lobbyists to try and derail the legislation to maintain business as usual. Opportunistic-getting out ahead of the regulations by challenging business units to start employing nontraditional, sustainable solutions to technical challenges, leading to new products or processes that they can market to other firms facing similar challenges. Pinto, J. K. (2019).  The RBS can assist in understanding the distribution of risk on a project or across a business, aiding effective risk management just as the work breakdown structure (WBS). Hillson, David.97.

A more general approach was taken in the universal risk project undertaken jointly by the risk management specific interest group of the risk management institute which might apply to any type of project in an sector of industrial, government or commercial activity. Hillson, David.97. . From my previous and current job, I used several approaches such as layered process audits and calculating the risks by severity, occurrence and detection for categorizing the risks. RBS provides a number of additional insights into the assessment of risk exposure on the project, which could not be available. A simple list of risk includes understanding the type of risk exposure on the project, exposing the most significant sources of risk to the project, revealing root causes of risk, indicating areas of dependency or correlation between risk, focusing risk response development on high risk areas, allowing generic responses to be developed for root causes or dependent group of risks

A hierarchical RBS framework similar to WBS provides a number of benefits, by decomposing potential sources of risk into layers of increasing detail. Besides RBS has the potential to become the most valuable single tool in assisting the manager to understand and manage risk to the project or business. By all the above-mentioned reasons, I felt Risk Breakdown structure is so important and is related to risk management.

response for Raja Manisha

There are various objectives that were discussed in this week’s lecturer and they are as follows: the project risk defining, the various stages of risk are recognised which are included in the project risk management and the steps that are necessary so that these risks can be managed. A detailed description about the project risk analysis and the process for management of these risk is also explained. The project management body of knowledge usually includes so many concepts and they are given below: planning of the risk management, identifying all the risks that are included, to perform the qualitative risk analysis, perform quantitative risk analysis, plan risk responses and control all the risks. Some questions need to be addressed when the risk management is performed. Thus the questions such as the probability of happening of an event that is the situation that is likely to occur and thus the impact of the risk can be known. The factors that are to be considered so that the probability of the risks can be minimised and even the impact of the risk can be reduced. There are various clues that are available and they should know all the clues that are available at the time of event. The outcomes must be known and the related reaction for the problems must also be known. Thus these are the various questions that are to be considered so that the project management can be done successfully(Hubbard & Douglas, 2009).

Coming to the risk management, it is basically an art and science so that the identification, analysis and response can be done for the factors of various risks. This process will be implemented throughout the project management and it will be implemented by considering the objectives of the company. 

Whereas coming to the project risks, it is usually an uncertain event which is caused and this may be positive or negative impact to the company objectives such as scope and the cost and quality of the project will be effected.

The four stages that are included in the risk management are given as following:

1. Risk identification.
2. Analysis of the probability and the consequences.
3. Risk mitigation strategies.
4. Controlling and documentation.

Thus these are the four stages that are included in the project management and they must be implemented in the project management or else the company will be into so many problems. Thus the risk management is one of the important thing that has to be implemented because it can avoid all the risks that are prone to the company and it helps in mitigating all the risks of the company. Thus it will identify all the risks and it will analyse them accordingly. Thus by using some of the methods the risks can be mitigated. Financial, legal, commercial and technical are the risk clusters that are available. These risks can be controlled with the help of some methods that are available. The common risks are skills unavailable, when the training is ineffective, absenteeism, changing in the orders, and many other. There are some of the techniques that are being used in the risk management and they are brainstorming techniques, opinion taken by various experts and from the data that is already available from the past. Thus with the help of these techniques the risks can be mitigated and they can be controlled(Peter Simon & David Hillson, 2012).