Risk Management Assignment: A Critical Analysis
Task: Prepare a risk management assignment analysing the concept of project risk management.
The aim of the paper on risk management assignment is to conduct a thorough analysis of Risk management and focus on the topics that relate to the same. The risk management trends are also analyzed over the years. In accordance with the results of the past, the future of the management of risk is being sensed. There are various managers of the project and strategy of the project, who have a concern for the risk on a long-term basis. Hence, the risk is needed to be learned. If there is no emphasis being put on risk, then it just cannot be seen. A successful project gets a lot of hope from risks, hence the risk that could not be found before are found now, can help in the successful implementation of the project. However, the risk that is found and made an assessment can be never be brought in to avoidance, but reduction of risk is possible by the usage of some adjustments and techniques.
Review of Select literature for risk management assignment
In the present era, there are various companies that undergo the conduction of their jobs in the form of a project. In traditional times, the concept of the term project was used in the industry of construction and military sections (Burkov, Burkova et al ,2018). However, the competing forces of the market and the technology that changes at a very fast pace encourage various companies to resort to the management of a project, and hence since there, the concept of the project has taken over. Project management refers to the process of applying knowledge, tools, skills, and the techniques in a project to meet what the project requires (Dmitry, Kristina, et al 2019). Management of the project can be accomplished only if the process of the management of the project are followed properly, which are initiation, planning, execution, control, and closing. There is a lot of pressure from the global economy corporate environment turbulence and various forces in the market that lead to increased demands and increased competition which has led to the taking up of a project in less time, optimum utilisation of the costs and functionalities in a better way. This are the main factors that influence the ability of the management in forecasting and reacting to the events of the risks, most of which are unforeseen (Sarker, Engwall, et al 2016). In the present risk management assignment, risk is considered a concept which is more concept that is difficult to measure. It refers to the combination of the frequency, the probability of occurrence of a definite hazard, and occurrence consequences magnitude.
Overview of Risk Management
Project risk management explored in the risk management assignment refers to the science as well as an art of the identification, analysis, and response to the risk that is attached to the project life and works best for the successful implementation of the project (Ding, Gao, et al 2017). On a formal level, everyone generally practices management of risks, consciously or unconsciously, since its inception. The modern management of risk has become a widely acceptable function of management in the early era. The risk management story has been negative in some cases and is not much supportive of the argument that it is effective in the light of management (Islamova and Zhilyaev 2017). In the earlier years the management of the project was not in a stable condition. It had to go through heavy criticism on account of failures of failures the root cause of which being the uncertainty in the technicalities, opposition from the community, influences of the environment of the project, and contact strategy (Nechaev, Ognev, et al 2017). A manager of the project will always have his arguments ready, about the external environment, which is not in the control of the project manager, and hence the risk can not be ascertained in each project to its full level. Risk management has various objectives that are discussed below within this risk management assignment (Alwi and Zainol Ariffin, et al 2018):
- Enabling the systematic making of decisions and them being less subjective.
- Providing a proper understanding and study of the risks that are likely to face a project with the help of the identification of risks and responding to a certain scenario.
- Providing assistance in taking the decision on which risk urgent attention is needed to be paid and the once that can be attended later.
- Forcing the management towards the realization of the possible outcomes of a project. It also takes into account the possible measures that are needed to be planned for consequences that are unforeseen.
The risk management consists of a few elements that are discussed below in this risk management assignment:
- Identification of the potential risks that are attached to the project
- Classification of the risk into the ones that need urgent attention and the once which can be talked about later.
- Analysis of risk, that is which how can the risk to the project can be mitigated
- Responding to risk and take proper corrective measure keeping the external environment at a place
- Attitude towards the risk.
The Management of risk takes into account some processes and procedures that are discussed below in the risk management assignment:
- Planning risk management
- Identification of the potential risks attached to the project
- Analysis of risk on the basis of quality
- Analysis of risk on the basis of quantity
- planning of the responses of risks
- controlling and monitoring of those risks
Process of Management in each management of project
Source: Dan Brandon
Management of risk of a project research on risk management assignment
Risk management research of a project examined in the context of risk management assignment refers to the process of finding the emphasis and findings that are being brought forward in the project. It particularly consists of the definition of the present works that are being performed on the management of the project (Desyatirikova, Belousov, et al 2017). It is followed by generalised conclusions that are made on the basis of the process of management of a project, which is planning of the planning of risk management, identification of the risk, qualitative analysis of risk, quantitative analysis of risk, planning of the risk response, monitoring and controlling of the risk (Krukhmaleva 2019).
What are the recent approaches to the management of risk provided in the context of risk management assignment?
There are three approaches of risk management that are being discussed in the risk management assignment:
Approach 1: The process of Top-Down Multi-Pass
The principle on which this approach presented in the risk management assignment works is understanding the project on a higher level, its risk attached to it. The key question relating to the risk of the project should be asked. The selection of the key techniques to risk management should be done in order to mitigate such risks when they arise in the future. The techniques that are to be used would be used for the optimization of the decisions that would influence the solution to the project (Monteiro and Silva 2015).
Approach 2: Quantitative forecasting based on risk
The quantitative forecasting on the basis of risk consists of the implying the models of the plans of the project in the acquiring the forecast based on the risk of the project. Such things consist of valuable information during the authorization of the project. It helps in implying the risks which would help in the forecasting of many overall risks (Jiang and Chai 2015).
Approach 3: Registering of the risks
This approach illustrated in the risk management assignment is termed as a very common approach for the purpose of identification of the risk list and putting in the register of risks for assessing and planning the risk response. Then the review of risk is conducted regularly for the updating of the risk information verification of the execution of the risk responses (Hai, Xiaojian, et al 2019).
Conclusion and Recommendation
From the above research paper on risk management assignment, conclusions can be drawn that the industries and business organisation suffer a lot from the loss and harms that are caused due to the mishandling of the risk properly. The risk management story has been negative in some cases and is not much supportive of the argument that it is effective in the light of management. There has been endurance of the apologetic outcomes that lead to failure due to the unnecessary delays in the completion of the project. Management of risk is an approach that is predefined and structured for the purpose of identification and analysis of the potential risks that are associated with a certain project, so that treatment of risk can be done at lower costs. It is almost impossible to remove all kinds of risks. The competing forces of the market and the technology that changes in a very fast pace encourages various companies to resort to the management of a project and hence since there, the concept of the project has taken over. However, the risk management assignment also signifies that one should not think to keep quiet on that matter but take steps in the identification of risks and elimination of them.
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