Project Risk: 450+ Words Discussion and TWO(2) responses with 100+ words (Strict only $10) with responses.

Reflection and Discussion Forum Week 5

This week I reviewed chapters Project Risk Knowledge Management and Cultural Shaping of Risk. These chapters provided information on introduction to project risk knowledge management, knowledge definitions and types, knowledge transformation, types and forms of knowledge, organizational culture and knowledge management, the knowledge creation cycle, additional issues of organizational culture, KMS alignment and information redundancy, tools and techniques for eliciting risk knowledge, developing organizational risk wisdom, project and organizational risk register architecture, challenges for implementing risk knowledge management systems, communication and risk knowledge management, introduction to cultural shaping of risk, culture in society, organizational cultures, external cultures as project risks shapers, and organizational cultures of other project stakeholders (Edwards et al., 2019).

External and Internal cultures affect an organization. Similarly, there are positive and negative effects of risks in a project shaped by internal and external cultures. We perceive risks based on our beliefs, views, emotions, and values. These elements are derived from our cultural practices and perspectives. An organization has its own corporate culture, and we observe the risks and its influence accordingly. So, how we identify, treat, evaluate, monitor, analyze, control, and manage risks might be influenced by our corporate culture.

1. How should an organization prepare for either type of event?

An organization should always be ready to face any type of unexpected situation. As we do not have a control over external events, yet we could have business continuity and disaster recovery plan. An organization should have a strategy to ensure business continuity during unforeseen events. If we trace back to history, there were lots of plagues such as Spanish Flu, Black Death, Plague of Justinian, Smallpox Epidemic, Cholera Plague, and currently we have COVID 19. Human civilization has faced these severe plagues and have still survived. So, we should get prepared for any other kinds of unforeseen events in the future. Even during the pandemic most business have flourished, while some of the businesses are shut down. We have to learn that if we stick to our traditional model of business, we might be a failure during critical events. We must adjust our business model accordingly as per the situation so that we can survive. We should have a contingency plan. For example, most business during pandemic attended meetings virtually and were still able to operate. Because bad times and good times are not forever, we have to adjust ourselves accordingly.

2. How should a business avoid negative events occurring and enhance opportunity for positive events?

There are different ways in dealing with negative evens such as: risk avoidance, risk acceptance, risk transfer, and risk mitigate. An organization should first identify the risks, analyze the risks, understands its severity and impact over business, and select the risk handling strategies accordingly. Risk management strategies might differ as per the severity of the risk impacts. Meanwhile, positive risks could bring opportunities in an organization. An organization should identify positive risks and use strategies such as risk acceptance, risk enhancement, risk sharing, and risk exploiting to reap the benefit and opportunities.

3. Explain the concept of a Pareto Chart – provide an example – explain how the concept of the Pareto Chart might be used in making decisions about handling negative risks which could impact a project or organization.

A Pareto chart have both line graph and bar charts. In the bars, the values are arranged in descending order, and the line represents the cumulative total. Pareto chart is used to show up the critical information in a chart form amongst several presented factors. For instance, in quality control, pareto chart can be used in identification and to show up common defect sources, or defects that are highest occurring types.

Pareto chart can be used as a decision-making tool that helps in highlighting and prioritizing frequently occurring events or problems. Once a core problem is identified, an organization can take precautions or actions to solve the issues or problems which can benefit the organization. An organization can make decision on critical problems that should be prioritized and taken care of by using pareto chart.

References

Edwards, P. J., Serra, V. P., & Edwards, M. (2019). Managing project risks (1st ed.). Wiley-Blackwell.