BBA 3626 Unit V Assessment

BBA 3626 Unit V Assessment

QUESTION 1

All of the following are among the classic risk response strategies EXCEPT:
share a threat.

QUESTION 2

On agile projects, detailed risk management activities may occur during all of the following times EXCEPT:

QUESTION 3

When a project team elects to purchase insurance, or adopts a fixed price contract with a vendor, or hires an expert, it is demonstrating which of the following risk response strategies?

QUESTION 4

Project managers can identify risks by learning and understanding the cause and effect relationships that bear on risk events. All of the following approaches rely upon an understanding of cause and effect relationships to identify risks EXCEPT:

QUESTION 5

Which of the following quantitative risk analysis techniques is used to determine which risks have the most powerful impact on the project, with results displayed in the form of a tornado diagram?

QUESTION 6

How might you approach the prioritization of the risk events identified by your project team and subject matter experts? How would you use the results of this prioritization effort to guide the development of risk responses?

Once risks have been identified by the project team and subject matter experts, it is then time to prioritize them and decide which risks are major and should be addressed and managed rather quickly and carefully, as opposed to minor risks that can be handled more casually. One approach to doing this; which should be performed by all project teams, would be to perform a qualitative risk analysis (Kloppenborg, 2015). Qualitative risk analysis is “the process of prioritizing risks for further analysis or action by assessing and combining their probability and impact” (Kloppenborg, 2015, p. 277). According to Kloppenborg (2015, p. 277), within qualitative risk analysis, the primary questions to be asked are “how likely is this risk to happen?” and “if it does happen, how big will the impact be?” An additional important question to consider would be, “for each risk, when is it likely to occur in the project?” This is an especially important question due to the fact that risks that are more likely to occur early should be assigned a higher priority. After risks are identified and analyzed, it is time to decide how to handle the identified risks. Plan risk response involves developing several options, actions, and steps to take in order to enhance opportunities and reduce various threats to project objectives (Kloppenborg, 2015). Risk responses can be developed and implemented based upon the results of the prioritization effort, dealing with the highest priority risks first and deciding whether or not specific risk responses would eliminate or reduce multiple risks at the same time.

Reference:

Kloppenborg, T. J. (2015). Contemporary project management (3rd ed.). Stamford, CT: Cengage Learning.

QUESTION 7

Identify five common project risk strategies employed to address threats that your project may face. Give an example of each.

Five common project risk strategies that can be employed to address threats are avoid risk, transfer risk, mitigate risk, accept risk, and research risk. Avoiding risk if at all possible is sometimes the best strategy and many people prefer it. Avoiding risk can involve anything from altering a project plan to avoid risk by deleting the risky section of the plan all the way up to not performing the project at all in order to avoid risk. Examples of avoiding risk could include a change in the project plan or scope, improved communications within a project, and deciding not to perform the project entirely. Transfer risk is the decision to transfer all or some of the potential risk to another entity. One common way to do this is through the acquisition of project insurance whereas a premium is paid to another organization so that they may assume some level of risk. An additional risk transfer strategy is the hiring of an expert to perform within the area of the associated risk and to hold that person accountable. Mitigating risk involves the implementation of specific strategies in an effort to lower risk. This can mean either lowering the probability of a risk event occurring, or reducing the impact if a risk event were to happen. Examples of risk mitigation include building in redundancy and using more reliable methods. A fourth risk response strategy is to accept risk, although this is often used only for risk that is deemed to be minor. Generally, in most cases, if risks that are deemed to be minor are truly minor, then they rarely happen, and if they do happen they will not cause any major disruptions. Examples of risk acceptance strategies include dealing with risks if and when they happen, establishing triggers for risk events and updating them frequently, and establishing time and cost contingencies. Finally, research risk involves simply learning more about specific risks to be better prepared to handle them. Methods of researching risks involve securing more, and better information in order to assist project teams in understanding what they are dealing with. Another method within researching risk is to verify assumptions. Assumptions pose a unique threat in that if the assumptions turn out to be false, they can then become risks (Kloppenborg, 2015).

Reference:

Kloppenborg, T. J. (2015). Contemporary project management (3rd ed.). Stamford, CT: Cengage Learning.