Assessing Task 2: Determining The Risk Factors

Running head: ASSESSING RISK 1

Assessing Risk

Natasha Bing

Grantham University

ASSESSING RISK 2

In the majority of all project activity, it entails some kind of risk of which may overall impact the successful project completion. Upon the completion of the project with its scope, tasks, budget and timeline, it is imperative to make an overall risk assessment to access any risk that may be considered impactful in the project (Lock, 2007). Any associated risk assessment is well-thought-out

to be a process to identify, analyze and respond to risk factors throughout the project (Frenkel, 2005).

In all aspects, risk assessments should measure the risks and foretell the impact of the project. Project management utilize risk assessments in order to

gain a better understanding of any associate risk that may potentially impact the project; which are normally identified by using risk assessment tools. Typically, risk assessment tools are very beneficial in a sense that that they forecast potential risk, and can essentially eliminate any delays that may cause a project to not be completed by its completion date. Generally, it is an efficient and effective tool utilized by project managers to assess risk.

ASSESSING RISK 3
The risk assessment process is performed in the following three steps:
Identify potential risks: This is considered to be the phase that all of your thoughts are place on the table and reviewed. By every means necessary project managers, subcontractors, operating team members, technical staff, and client all join together to review these potential risk. Most likely the majority of organizations will have several risk categories to examine and identify those particular risks that are specific to their project. For example, this could essentially include but is not limited to the following: Technical risk, project management risk, organizational, risk, financial risk and compliance risk.
Determine probability: Once all of the potential risk have been identified, using an assessment tool, risks are then categorized according to probability of the risk actually occurring.
Determine Impact: The next and final step is utilizing the assessment tool to determine the likelihood level in reference to it being high, medium or low. Also, when assessing the risks, it is important to remember that not all threats have the same impacts as the project will also determine these factors.
Typically, the project manager accepts the responsibility of scrutinizing and evaluating the likelihood and impact of any identified risk that has been recognized. Once all potential risk have been identified in the project, they will then need to be managed. Generally, these risks are more likely to occur known as “high probability” to include but not limited to those considered to have a high impact to the project is what needs to be focused on (Frenkel, 2005).

ASSESSING RISK 4
The primary tool utilized to conduct the risk assessment is known as the “Risk Assessment Matrix” which predominately consists of all the risk factors and the order of importance.

The risk factors signify the causes that are measured to have the most influence on project risk. Looking at everything in its entirety the risk ranking guidelines are ‘probability and impact’ determining the occurrences and impact of each of the risk factors to the project and assigned to low, medium, and high rank categories (Frenkel, 2005).

However, as it correlates to the J. Smith & Associates, risk assessment is vital to get a better understanding of risks associated in this project and what could be there possible impact to the project. Such risk assessment is organized using one risk assessment tool ‘Risk Assessment Matrix’. For this project, risk factors and their probability and impacts are described below:

Risk Assessment

Matrix
No Risk factors Probability Impact
01 Constricted timetable in financial budget High High
02 Breach of contract or Lack of response by contractors Low High
03 Deferring of payments to contractors Low Low
04 Technical problems Medium Medium
05 Quality of materials are not up to par Low High
06 Modifications to network design or design made of error High High
07 Unqualified staff for project Medium Low
08 Deliverable not delivered in a timely manner High Medium
08 Abuse of funds for project High Low
09 Communication failure amongst project manager and client High High
10 Bankruptcy High High
For the project of J. Smith & Associates, see the illustration above of which are to include but not limited to the risk that could potentially be associated with the project. Immediately following the assessment of the above mention risk factors, actions and follow-ups should be implemented to mitigate those particular risk that have been identified. Risk mitigation planning should be established to evaluate such identified risk and the procedure should be followed to mitigate them (Frenkel, 2005). It is imperative that all identified risks be handled with this procedure in a timely manner. Detailed mitigation procedures should be designated after the probable impact on the project has been determined. The Project Manager for J. Smith & Associates project will define what action should be during team huddles-meetings to include by reviewing various reports throughout the week.
ASSESSING RISK 6
References:
Frenkel, M., Hommel, U., Rudolf, M., & Dufey, G. (2005). Risk management: Challenge and opportunity. (Springer e-books.) Berlin: Springer.
Lock, D. (2007). Project management, ninth edition. Aldershot, England: Gower Pub.