...Risk Analysis Estimating Methods - Scheduling Risks As Applied to the Panama Canal Case Study 11/8/2010 Kendrick argues that establishing project planning is a necessary key requirement of managing project schedule risk (2009, p.334). Regardless of how thoroughly a project manager works to ensure that a project’s schedule is accurate, he or she cannot fully control the inevitable and random influences that may negatively impact their project schedule. Equipment failures, nature, and sick employees are just a few of the uncontrollable factors that may jointly cause a project manager to miss their project’s target date. In preparation for these risks, a project manager needs discipline to devise an appropriate, risk-controlled project schedule. These Kendrick states that scheduling risks fall into three categories (2009, p.71): * Delays - Usually caused by material delivery and availability issues. * Estimates - Minimize this risk by using better estimation procedures. * Dependencies - When one project depends on other projects or systems, a failure or delay in any area can cause a domino effect. Risk Identification is the process of documenting risks that threaten a project and determining which of those risk have the potential to cause the most impact it. The act approximating the degree of impact a risk may have on a project schedule is referred to as estimating. This paper discuses two tools or techniques of estimating scheduling risks used to predict...
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...Risk Factor Analysis— A New Qualitative Risk Management Tool John P. Kindinger, Probabilistic Risk and Hazards Analysis Group, Los Alamos National Laboratory John L. Darby, Probabilistic Risk and Hazards Analysis Group, Los Alamos National Laboratory Introduction Project risk analysis, like all risk analyses, must be implemented using a graded approach; that is, the scope and approach of the analysis must be crafted to fit the needs of the project based on the project size, the data availability, and other requirements of the project team. Los Alamos National Laboratory (LANL) has developed a systematic qualitative project risk analysis technique called the Risk Factor Analysis (RFA) method as a useful tool for early, preconceptual risk analyses, an intermediate-level approach for medium-size projects, or as a prerequisite to a more detailed quantitative project risk analysis. This paper introduces the conceptual underpinnings of the RFA technique, describes the steps involved in performing the analysis, and presents some examples of RFA applications and results. project activity flow chart to help organize the RFA. The flow chart defines the tasks to be modeled and their interrelationships for the project schedule analysis. WBS and schedule tasks may be consolidated and/or expanded to explicitly highlight those tasks and influences that are expected to have a significant technical risk and/or significant uncertainty in schedule or cost performance. The flow chart is developed...
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...When we look at the terms of risk reduction and hazard control we get the terms of eliminating and reducing the issues. Where control of hazards seek to maintain instead of removing the process. The term that risk reduction is applied to is a complete understanding of the intent of the criterion to ty risk- reducing the probability of the events occurring. In the terms of the second and third definitions of risk because they include both the probability of the event and the severity of the harmful consequences. Risk reduction is a term that capture the fundamental concept that harmful events consist of the three phases. Jensen, R. C. (2012). Risk-Reduction Methods: For Occupational Safety and Health (1st e A physical model is one that thing would be (like if you were creating a model of say a building, park, airplane or other large structure or area), sometimes it's actual size if it is small enough. You build or have built that you can touch. Sometimes it is a miniature version of what the real. What I mean by physical models is those that are meant to represent the physical world, as opposed to – for example – biomechanical, or computers models. Jensen, R. C. (2012). Risk-Reduction Methods: For Occupational Safety and Health (1st ed.). Whenever you are planning or one have to deal with risk and hazards we should looking in to the process from the beginning to the end. Where do we want to be at this point in the project as...
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...struggling to understand what the threats to their information assets are and how to obtain the necessary means to combat them which continues to pose a challenge. The ISF’s Information Risk Analysis Methodology (IRAM) enables organizations to access business information risk and select the right set of security controls to mitigate that risk. IRAM2 Founded in 1989, the Information Security Forum (ISF) is an independent, not-for-profit association of leading organizations from around the world. It is dedicated to investigating, clarifying and resolving key issues in cyber, information security and risk management by developing best practice methodologies, processes and solutions that meet the business needs of its Members. ISF aims its products at large public and private sector organizations, and produces an annually updated Standard of Good Practice for Information Security. This approach has three phases: a business impact assessment which determines the security requirements of the business, a threat and vulnerability assessment, and control selection. IRAM2 is a simple, practical yet rigorous business essential that helps ISF Members identify, analyze and treat information risk throughout the organization. The standard and its related tools, which must be purchased from ISF, make for a thorough risk management package. The price of the materials includes user guides and attendance at some ISF events....
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...Information Technology risk management currently plays more and more important role in almost all aspects of contemporary organizations functionality. It requires reliable and cyclical realization of its key task which is risk analysis. The field of risk assessment and risk management is becoming increasingly more complex as we go through Operations, Audit, Compliance, Budgeting and the many other facets of business. Quantitative and qualitative methods are two fundamental groups of methods are applied for analysis of risk on which assets are exposed in organizations. Quantitative method identifies the risks and quantifies them based on a numeric scale, e.g., 0.0 to 1.0 or 1 to 10; and qualitative, which is based on gaining a general impression about the risks so as to qualify them. The process uses subjective terms like "low to medium," "high or poor" "good to excellent," instead of numeric values. Following are the most important advantages and disadvantages of the qualitative and qualitative methods of IT risk analysis. Advantages Quantitative methods: They allow for definition of consequences of incidents occurrence in quantitative way, what facilitates realization of costs and benefits analysis during selection of protections. They give more accurate image of risk. Qualitative methods: It allows for putting in order risks according to priority. It allows for determination of areas of greater risk in a short time and without bigger expenditures. Analysis is relatively easy...
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... 5, (2007), No. 2 331 RISK AND DECISION MAKING PROCESS Katarína RIPLOVÁ University of Žilina, Faculty of Management Science and Informatics, Slovak Republic e-mail: Katarina.Riplova@fri.uniza.sk Abstract The paper deals with problem risk and decsion making process, risk management, risk in decision making process and risk control. Current business environment is defined by quite big amount instability and possibilities of unforeseenable changes. Base upon environment characteristics above, the structure of decision making is decision making under condition of safety, risk and uncertainty. Risk management represents the process of risk identification, estimation of its potential impact and finding the most effective methods of control or reacting to those risks. Keywords: risk, decision making process, manager, decision risk management 1 INTRODUCTION The risk of a right decision is an inseparable part of manager decisions, primarily of strategic management planning of vital projects and business plans. There are always two aspects on a business, positive and negative. The positive risk feature relates to the hope for success, negative one manifests itself in worse results than expacted, or even in a loss. The increase of business success probability in demanding market environment requires active and systematic work with risk. This is the principal role of risk management. The decision making situation under the risk condition is characterized by...
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...Risk mitigation techniques Risk management involves the process of continuous identification of the risk factors and devising way and methods of dealing with them. The identification process can be done using different types of models depending on the type of organization being analyzed (Chapman, 1996). Dr. Kallman a professor of risk management, has several techniques which he has discussed regarding the risk management which will be compared with other techniques recommended by other authors like Victoria Duff. Understand the risk According to Dr. Kallman on risk management, he has given the following techniques to be used. Dr. Kallman says that before giving the mitigation techniques to the risk, there must be identification of the risks. A risk manager should understand the type of risks which are likely to face a firm and list them down. This is what we call risk identification. For one to know this, there must be clear understanding of the companies’ goals, mission and objective. From these factors, the risk that is likely to face an organization can be identified easily. When the risks have been identified, they can be categorized to three distinct groups such as, operational, strategic and economic. Strategic risks include those risks with long term varied effects on the firm and they are composed of factors like, the reputational risk, quality risk and brand risk. The next set of risk is operational risks which include things like the hazards which expose the business...
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...Paper Entitled RISK MANAGEMENT M.Tech-2nd Sem Computer Science and Engineering Guru Nanak Dev University, Amritsar Submitted by: Parul Garg Table of Contents |Topic Name |Page No. | |Abstract |3 | |Introduction |3 | |Need of Risk Management |3 | |Risk Management Process |4-6 | |Popular Risk Management Models |7-8 | |Riskit Method |8-12 | |Conclusion |12 | |References |13 | Abstract: The risk management in software project is a crucial activity because if any risk becomes true, it can hamper the growth of project as well as its organization. This paper presents the basic concept of risk, need for risk management and its...
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...Introduction Risk management is the process of identifying vulnerabilities and threats to information resources used by a company in reaching business objectives and deciding what measures to take in reducing risk to an acceptable level. An effectual risk management process is an essential component of a successful IT security program. The paramount goal of an organization's risk management process should be to protect the organization and its ability to perform their mission, not just its IT assets. With that in mind, the risk management process should not be treated primarily as a technical function by IT experts, but rather as an essential management function of the organization. The objective of performing risk management is to enable the organization to accomplish its mission(s) (1) by better securing the IT systems that store, process, or transmit organizational information; (2) by enabling management to make well-informed risk management decisions to justify the expenditures that are part of an IT budget; and (3) by assisting management in authorizing (or accrediting) the IT systems on the basis of the supporting documentation resulting from the performance of risk management . “Effective risk management begins with a clear understanding of the organization's appetite for risk2. This drives all risk management efforts and impacts future investments in technology. Risk management encompasses four key elements: Risk identification, risk mitigation, risk acceptance...
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...INVESTMENT ANALYSIS Table of Contents 1.0. Introduction: 3 3.0. Advantages of frequency distribution: 3 4.0. Analysis of returns of Reliance industries limited 4 3.1 Analysis of return of ONGC: 5 3.2 Analysis of return of Bharti Airtel: 6 4. Measurement of central tendency: 6 4.1 Mode: 7 4.2 Median: 7 4.3 Mean 7 5. Conclusion: 8 REFERENCES 10 1.0. Introduction: Generally shares are issued in the primary market and new issued shares are traded in the secondary market. BSE and NSE are two renowned stock exchanges which plays an important role in Indian stock market. Most of the big companies in India are listed in these stock exchanges. The companies are enlisted with these stock exchanges as per rules and regulation specified by particular stock exchanges (Greer and Kolbe, 2008). In Indian context the company distributes the shares in lieu of capital with the help of these stock exchanges. It is an essential pillar of private sector companies. Mallin and Ow–Yong (2009) commented that capital formation is the main function of stock exchanges. Beside the main function stock exchanges in India do lots of work. It provides a place where all the securities are traded. Security market provides a linkage between saving sector and corporate sector. Stock market generally provides the all the information about price and trading of the securities altogether. The author selects three big companies i.e. Reliance industries ltd, ONGC, Bharti Airtel Ltd, to compare...
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...Introduction Transfer pricing has long been an important cost management topic for transactions among domestic subsidiaries. The concern is to promote actions and behaviors that seek to maximize the corporate performance and profitability rather than the subsidiary performance. Unlike transfer pricing between two divisions of the same company, this transactions between subsidiaries cross international boundaries, involve tax issues concerning the determination, analysis and adjustment of prices between this related entities. I. Transfer price 1. Transfer price definition The transfer prices are the prices at which an enterprise transfers physical goods and intangible property or provides services to associate enterprises. They are the prices charged for any transaction between affiliates entities. This transfer may be commercial, financial or technical. According to the OECD, two companies are associated if one of the enterprises participates directly or indirectly in the governance, management, control or the capital of the other or if the same persons participate directly or indirectly to the management, control or the capital of both enterprises. They can be defined simply as transactions prices between companies of the same group and resident in different states. This type of transactions involves intra-group transactions crossing borders. Example: Within a MNE group, a subsidiary A established in France sells computers to another subsidiary B established...
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...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...
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...HIPAA Security Standards: Guidance on Risk Analysis Introduction The Office for Civil Rights (OCR) is responsible for issuing annual guidance on the provisions in the HIPAA Security Rule.1 (45 C.F.R. §§ 164.302 – 318.) This series of guidances will assist organizations2 in identifying and implementing the most effective and appropriate administrative, physical, and technical safeguards to secure electronic protected health information (e-PHI). The guidance materials will be developed with input from stakeholders and the public, and will be updated as appropriate. We begin the series with the risk analysis requirement in § 164.308(a)(1)(ii)(A). Conducting a risk analysis is the first step in identifying and implementing safeguards that comply with and carry out the standards and implementation specifications in the Security Rule. Therefore, a risk analysis is foundational, and must be understood in detail before OCR can issue meaningful guidance that specifically addresses safeguards and technologies that will best protect electronic health information. The guidance is not intended to provide a one-size-fits-all blueprint for compliance with the risk analysis requirement. Rather, it clarifies the expectations of the Department for organizations working to meet these requirements.3 An organization should determine the most appropriate way to achieve compliance, taking into account the characteristics of the organization and its environment. We note that some of...
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...Country Analysis for an Emerging Market: The Indian Example Haoran BI Country Analysis for an Emerging Market: The Indian Example Abstract: The Beta Country Risk Model, as described by Erb, Harvey and Viskanta (1996) and used by Andrade and Teles (2004) for Brazil, is used to estimate the country risk of India based on several macroeconomic indicators. Ordinary least squares regression is run on the white noise (unexpected component) of these variables to explain the variation in country risk to identify the most relevant of these variables. The study shows that the variation in country risk of India is highly correlated with changes in FDI flows, interest rates (monetary policy), exchange rates and the unemployment rate. The effect of political risk on overall country risk is also studied. Key words: country risk, country beta model, risk modeling 1. Introduction Globalization and increasing financial unification has led to a rapid growth of international lending, foreign direct and institutional investment. With this, economies across the globe are increasingly becoming interdependent and developments in one part of the world affect returns in another. Given this, country risk analysis provides insights into that part of the risk of an investment specific to a certain country. “Country Risk”, in general refers to the risk associated with those factors that determine or affect the ability and willingness of a sovereign state or borrower from a particular country...
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...Information Security Management RISK ASSESMENT Information systems have long been at some risk from malicious actions or inadvertent user errors and from natural and man-made disasters. In recent years, systems have become more susceptible to these threats because computers have become more interconnected and, thus, more interdependent and accessible to a larger number of individuals. In addition, the number of individuals with computer skills is increasing, and intrusion, or “hacking,” techniques are becoming more widely known via the Internet and other media. Arisk assessment is not about creating huge amounts of paperwork , but rather about identifying sensible measures to control the risks in your workplace. You are probably already taking steps to protect your employees, but your risk assessment will help you decide whether you have covered all you need to. Think about how accidents and ill health could happen and concentrate on real risks – those that are most likely and which will cause the most harm. For some risks, other regulations require particular control measures. Your assessment can help you identify where you need to look at certain risks and these particular control measures in more detail. These control measures do not have to be assessed separately but can be considered as part of, or an extension of, your overall risk assessment. Although all elements of the risk management cycle are important, risk assessments provide the foundation for other...
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