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Running Head: RISK ASSESMENT 1

RISK ASSESSMENT 2

Final Exam

CMGT 562: ENGINEERING RISK MANAGEMENT

RISK ASSESSMENT

Risk management done after risk analysis plays a center stage role in the practice of management for purposes of ensuring that there are no unexpected occurrences during the actual execution of a project. It is definitely impossible to definitely define the future despite the numerous efforts done to research in that line. However, through the application of an empirical risk management process, the uncertainties can be predicted to a relative level of accuracy and efforts thus made to avert the uncertainties if possible or otherwise reduce if not combat the effects of the uncertainties (Kliem et al, 2019). Through the application of these guidelines, the execution of the project is optimized thus improving the efficiency and hence reduction of costs undertaken in the execution of the project. Through these optimizations, the project success chances are greatly bolstered.

In any project undertaking, the risks are always existent and thus have to be faced irrespective of the approach facing the risks. It is thus advisable to device the optimal approach to countering these risks and thus improve optimality. In the case where the framework for countering the risks that may occur during the project undertaking, there may be shortcomings that may be encountered. The process of evaluating the impact of the risk may not be as comprehensive as may be desired. Due to this incomprehensiveness in the process of evaluating the impacts thereof, there may occur different forms of losses such as losing knowledge of how the risk generally impacts the project as a whole rather than the sections of the project. These factors of overall project loss are inclusive of time, costs incurred and quality loss.

The overall risk assessment as well involves the process of identifying secondary risks that may be related to the already recognized risks (Muriana et al, 2017). The effects of the lack of comprehensive guideline for risk assessment as well as risk combat brings about the communication barrier and hence deteriorates transparency within the project team. From this assessment, it is clear that any project organization should have a clearly stipulated risk assessment and hence risk management guideline. The accurate risk assessment and management guideline aids in institution of the project team culture that focuses resources in the most optimal way of consciously and focused approach to the handling of the project risk management. Through this establishment, the project projection is focused and unaltered thus influence effective communication so as to have optimal team building process.

Risk management is regarded as highly challenging with regard to project management process. Through risk management possible risks can be identified and hence appropriate action initiated earliest possible so as to avoid detrimental impacts on the overall project undertaking. Through risk assessment, risk management can thus yield the statistical analysis of historical patterns thus defining the possibility of occurrences which may enable appropriate planning to avert the detriments of the undesirables. In a well-organized establishment for project undertaking, the risk assessment and subsequent risk management is not a rigid guideline for the entire risk analysis program (Wang et al, 2016). Rather the risk assessment and risk management process incorporate continuous learning and continuous development thus the execution procedures of the project can be continually altered to enable the project to be conducted to its conclusion in the optimal manner thus utilize resources appropriately. Through establishment of a clear risk assessment and risk management guideline the project undertaking organization can thus build sufficient confidence in the clients as well as possible clients thus attract more customers in the business operations that they are involved in and through this process the organization can improve productivity as desired.

References

Kliem, R. L., & Ludin, I. S. (2019). Reducing project risk. Routledge.

Muriana, C., & Vizzini, G. (2017). Project risk management: A deterministic quantitative technique for assessment and mitigation. International Journal of Project Management, 35(3), 320-340.

Wang, T., Wang, S., Zhang, L., Huang, Z., & Li, Y. (2016). A major infrastructure risk-assessment framework: Application to a cross-sea route project in China. International Journal of Project Management, 34(7), 1403-1415.