Applying Risk Management

Table of Contents

1 Introduction 2

2 Aspect 1: Risk Analysis 2

3 Aspect 2: Risk Monitoring and Control Stage 3

4 Conclusion 5

5 Reference 6

1 Introduction

In our attempt to cover all areas of the Risk Management process within such a small time frame, some areas of this Project Management principal were briefly covered or overlooked. In my opinion the following two key aspects could have been better managed by our group towards the contribution of the final presentation:

• Risk Analysis Stage within the Risk Management Cycle (Refer to Figure 1 and 2) and,

• Risk Monitoring and Control Stage (Refer to Figure 1 and 2).

2 Aspect 1: Risk Analysis

In our final video submission we specifically focused on one of the two methods used to undertake Risk Analysis, which was qualitative. The qualitative approach is the most used method due to its usually rapid and cost effective means of establishing priorities for Risk Response Planning (PMBOK,2004), thus the reason for our focus. But there are two problems with this approach first their meaning can be widely interpreted and secondly you cannot do much with them except to have biased rules about combining them and taking this as an indicator of the overall significance of the risk.(Department of Commerce, 2004)

The Quantitative method is the other technique used in Risk Analysis which was only briefly mentioned in the final presentation due to reasons discussed above. In my belief this method should have got more

focus as it gains more ground as a preferred risk assessment as outlined in the Project Risk Management guideline by the Department of Commerce, 2004.

The shift away from using the qualitative approach is the use of ratio scales so that numbers can be directly applied to the other numeric data such as dollars, days and lines of code