I need help in answering the following questions:
What is the value of a risk assessment? How can risk mitigation strategies be used effectively to prevent a risk from occurring? How can contingency planning be a part of the strategic planning process?© BrainMass Inc. brainmass.com October 24, 2018, 10:50 pm ad1c9bdddf
What is the value of a risk assessment?
The object of risk assessment is to identify and quantify the risks involved in any activity, and totake appropriate action to reduce or eliminate any obvious or potentially harmful elements of it. Basically, Risk assessment is the first process in the risk management methodology. Organizations use risk assessment to determine the extent of the potential threat and the risk associated with various processes and activities in the organization. The output of this process helps to identify appropriate controls for reducing or eliminating risk during the risk mitigation process.
Therefore, the key value of risk assessment is that it provides a firm background and understanding to the risk professionals in the organization about the potential risks, so that they can develop a strong risk mitigation strategy for the organization. Without effective risk assessment, a successful risk mitigation plan cannot be developed.
What is the value of a risk assessment? How can risk mitigation strategies be used effectively to prevent a risk from occurring?
Risk Assessment Mtg.
You met with your department manager, a few of the stakeholders, and the sponsor last week to review the list of possible risks. They accepted most of your risks and agreed that the next step was the assessment. There was some confusion, however, over how that step should be completed. Apparently, a prior project manager did a poor job with risk assessment and felt that it was an unnecessary activity. This resulted in the project encountering several risks and always being in fire-fighting mode. Several of the stakeholders (who were impacted most by this mode) want a much more formal approach taken to risk assessment (as does the CEO).
You have scheduled a risk assessment meeting for later this week. Create a pre read document for the meeting participants that will walk them through how you will run the meeting and what they should prepare in advance. In your 2-3 page document, be sure to address the following:
Who will you involve? (number of people, roles, and project responsibilities)
How will you manage the group?
What is your process for assessing the risks? What techniques will you use?
Where will you start?
In preparation for the meeting and to help you focus on the upcoming task, review your list of risks. Practice the various techniques you will use by assessing at least 15 of your risks. Create a grid for this activity. Use a qualitative method to identify the high-priority and low-priority risks. Provide a rationale for your responses. Then, using a semi-quantitative method, create a risk score and probability/impact matrix for the remaining risks. The columns should be organized as follows:
Rationale for probability
Rationale for impact
Next steps (describe what you need to do with this risk event next: nothing, further analysis, or determine actions)