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

Preparing for a positive or negative risk event

Events like the COVID-19 Pandemic are completely out of organization controls world-wide. They can have a huge impact and there is very little a business can do to stop it. All they can do is prepare correctly to cope with various outcomes.

There are no guarantees in the business world, and they should be prepared to take on whatever might come their way. An organization should map out as many outcomes and situations as they can in order to be more agile and adaptable. It is important to not feel discouraged about what wasn’t accomplished but to evaluate progress fairly depending on the situation. Alternative goals should be figured out to account for best and worst case scenarios. (Dennis, 2020)

Overall it helps to prepare for events by understanding the market after the event to best set you up for success. Diversifying options and business understanding can prepare a company to stand the best chance in an event that impacts once essence of the business.

Enhancing Positive Events

There are several risk response strategies that businesses can utilize to encourage and enhance opportunity of a positive event. Accept that the opportunity is outside the scope of the project and allocate resources to recognizing and recording it in the risk register to escalate it.

By assuring that the opportunity must materialize, the exploitation approach seeks to eliminate the uncertainty associated with a particular positive risk. The project management team invests time and effort to fully comprehend the potential. Because there is no longer any ambiguity, the exploited opportunities are later deleted from the Risk Register. They have a big influence on the project's goals.

The enhance technique increases the likelihood of a favorable opportunity's effect. Practices are used in this approach to help people detect positive risks to a greater extent. When crucial positive risks aren't taken advantage of, this method can be used. (Iqbal, 2019)

Avoiding Negative Events

Several strategies are known to businesses that help them to evaluate and manage negative risks best to get as close to avoiding them as possible. Risk avoidance is a critical response technique in which the project team strives to eliminate the threat or shield the project from its effects. After escalation, these threats are logged in the Risk Register, which is then used by the project team. It generally entails altering the project management strategy, such as making modifications to the project's design throughout execution.

When the project team seeks to reduce the likelihood of occurrence or effect of risk within the stated threshold limits, mitigation is applied. It entails making changes to the project management plan, such as adding to the project timetable or expanding the scope of the project.

Indemnification, performance bonds, guarantees, and other risk transfer methods can be used. When the project team moves the impact of a risk to a third party in conjunction with the response's ownership, the reaction approach is applied. (Iqbal, 2019)

Pareto Charts

The Pareto principle, sometimes known as the 80/20 rule, is the foundation of Pareto analysis. It assumes that just a limited number of reasons determine the majority of issues or outcomes in every circumstance.

A Pareto chart aids in identifying the critical few contributors who are responsible for the majority of quality issues. The chart is a sort of histogram that ranks any data collected by frequency of occurrence, such as how many quality faults were caused by a specific type of determined cause. (Carpenter, 2011)

The Pareto chart helps an organization to easily visualize what risks comprise the 20% that are the vital few, and which risk make up the trivial many. Once these main negative risks have been identified, they can have the majority of resources and time assigned to them to quickly eat into the 80% of impact that they are causing. (Greenwood, 2020)

Figure 1: Pareto Chart Example: Defects in Shirts

Works Cited Carpenter, J. (2011). Quality Management in Projects. Project Management in Libraries, Archives and Musuems. Dennis, K. (2020). Top Tips for rapping Up "The Year of COVID" on a Positive Note. Special Events. Edwards, P. J., Serra, P. V., & Edwards, M. (2019). Managing Project Risks. Wiley Blackwell. Greenwood, A. (2020). The Pareto Chart: How to Solve Problems & Make Informed Decisions. Process.st. Iqbal, M. (2019). Negative Risk and Positive Risk. PMP Concepts.