450+ Words Discussion And TWO(2) Responses With 100+ Words (Strict Only $10) With Responses.

Week 3 Discussion

Neel Himanshu Chalishazar

University of the Cumberlands

Summer 2021 - Project Risk & Quality Management (BADM-627-A01) - First Bi-Term

Michael Hitson

The seventh chapter in the given presentation is mainly about the project risk identification tools. For every project to be successful, the role of the risk identification tools for the projects is significant. This is mainly because these tools help identify the potential risks included within the particular project. Some of the risk identification tools include brainstorming, maintaining the risk register, conducting effective interviews, and implementing the Delphi technique to effectively and successfully determine the project risks. The eighth chapter in the given presentation mainly defines the significance of the project risk analysis and identification as every business organization must consider the importance of conducting an effective risk analysis that could be helpful for the potential risk identification of the project. Without conducting this analysis may lead to a greater failure of the project that makes the organization face an adverse effect and a greater loss, and the organization's reputation may decrease due to the inability of the undertaken project.

1) Identification of the potential risk and also the evaluation of the impact of that potential risk which is involved within the specific project are being found to be included in the risk assessment process. The process used effectively by the project team members to control the project activities and avoid the negative consequences of the project can be defined as risk remediation.

The process that is used significantly for recognizing the potential risks that were likely to occur within the project that could lead to preventing the project from achieving its goals and objectives can be considered to be a risk identification ("Identifying Tools and Methods for Risk Identification and Assessment in Construction Supply Chain", 2020).

Risk evaluation for a chance of occurrence can be defined as the effective evaluation that needs to be done for a specific project where it is detected that there are few chances of risk occurrence.

Risk evaluation for impact when the risk takes place is defined as any type of risk that results with a certain impact due to which it is required to evaluate to know its potentiality of effects to the project.

Risk remediation was divided into four types. They are market risk, credit risk, liquidity risk, and operational risk.

In any project, the specific person responsible for implementing the effective risk response strategy such that the risk is identified by monitoring it continuously can be known as the project risk owner.

One of the measurement tools that can be used effectively to determine the degree of uncertainty and the impact level at which the project's key stakeholder is interested in finding it can be defined as the project threshold.

The matrix used effectively during the risk assessment process mainly for determining the risk level can be defined as the risk matrix.

2) The following are the several risks identified for a family vacation to Myrtle Beach, SC, at a Coastal resort:

Scheduling risk: It is essential to plan effectively all the activities that should be attained successfully (Edwards et al., 2019). The family members are primarily responsible for following all the scheduling activities according to the plan.

Budget risk: It is required to allocate a sufficient budget for every scheduled activity to avoid the concerns that result from the lack of funding.

Risk of medical emergencies: All the family members must check that all are healthy and are not having any health concerns to avoid the medical emergency risks.

Risk of safety: It is suggested that all the family members take care while staying at the resort or while visiting the beach to avoid any sudden accidents.

Risk of weather: The family member should know about the weather conditions that are present at the vacation spot and they should be prepared to face any sudden changes that result from the weather.

The risk matrix for the given scenario is determined as follows:

To create the risk matrix the probability of occurrence of the specific risk and its impact on the family vacation are considered to be two significant parameters. The ratings are arranged in descending order and they are given between 1 - 5.

The rating for the first parameter that is the probability of occurrence of the risks, is tabulated as follows:

Categories	Rates	Description
Probable	5	The chance of risk occurrence is higher.
Likely	4	The chance of risk occurrence may depend on the situation.
Possible	3	There are possibilities for the risk to occur.
Unlikely	2	The chance of the occurrence of risk is lower.
Remote	1	Remote chances for the risk occurrence.

The highest rate for the probability of risk is considered to be 5.

The rating for the second parameter that is the severity of the impact of the risk, is tabulated as follows: 

Categories	Rates	Description
Extreme	5	The impact can be substantial.
High	4	The impact can lead to major complexities.
Medium	3	There might be a moderate impact of the risk.
Low	2	There might be some impact level of the risk.
Negligible	1	No significant impact of the risk.

The highest rate for the impact of risks is considered to be 5.

It is significant to calculate the risk score for plotting the identified risks in the risk matrix. This risk score can be determined by the following formula:

Risk score= Probability of occurrence x Severity of the Impact

For the identified risks the risk score is determined as follows:

Risk of schedule- unlikely; low. 

2 x 2 = 4. 

Risk of the budget- Unlikely; medium.

2 x 3 = 6

Risk of medical emergencies- Unlikely; high

2 x 4 = 8

Risk of theft - Unlikely; high

2 x 4 = 8

Risk of safety- Possible; extreme.

3 x 5 = 15

Risk of weather- Possible; medium.

3 x 3 = 9

The following are the four ways that are categorized for the family vacation at which the risk scores are assigned to the identified risks

1. Low risk that is considered to be acceptable

2. Moderate risk which may or may not be acceptable.

3. High risk which will not be acceptable. 

4. Extreme risk which is also not acceptable. 

They are categorized as follows:

Low risk (1 - 5)	Moderate risk (6 - 10)	High risk (11 - 16)	Extreme risk (> 16)
Risk of schedule	Risk of medical emergencies	Risk of Safety
	Risk of budget
	Risk of weather
	Risk of theft

References

Edwards, P., Vaz Serra, P., & Edwards, M. (2019). Managing project risks. Wiley-Blackwell.

Identifying Tools and Methods for Risk Identification and Assessment in Construction Supply Chain. (2020), 33(7). https://doi.org/10.5829/ije.2020.33.07a.18