SOLUTION: Campbellsville University Risk Mitigation Strategies Discussion

Project Management: Achieving
Competitive Advantage
Fifth Edition
Chapter 7
Risk management
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Learning Objectives
7.1 Define project risk.
7.2 Recognize four key stages in project risk
management and the steps necessary to manage risk.
7.3 Explain the Project Risk Analysis and Management
(PRAM) process.
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
PMBoK Core Concepts
Project Management Body of Knowledge (PMBoK) covered
in this chapter includes:
1. Plan Risk Management (PMBoK 11.1)
2. Identify Risks (PMBoK 11.2)
3. Perform Qualitative Risk Analysis (PMBoK 11.3)
4. Perform Quantitative Risk Analysis (PMBoK 11.4)
5. Plan Risk Responses (PMBoK 11.5)
6. Control Risks (PMBoK 11.6)
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Questions to Consider in Risk Management
• What is likely to happen (the probability and impact)?
• What can be done to minimize the probability or impact of
these events?
• What cues will signal the need for such action (i.e., what
clues should I actively look for)?
• What are the likely outcomes of these problems and my
anticipated reaction?
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Risk Management
Risk management—the art and science of identifying,
analyzing, and responding to risk factors throughout the
life of a project and in the best interest of its objectives.
Project risk—an uncertain event or condition that, if it
occurs, has a positive or negative effect on one or more
project objectives such as scope, schedule, cost, or
quality.
Risk = (Probability of Event ) (Consequences of Event)
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Figure 7.2 Risk Versus Amount at Stake:
The Challenge in Risk Management
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Four Stages of Risk Management
1. Risk identification
2. Analysis of probability and consequences
3. Risk mitigation strategies
4. Control and documentation
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Risk Clusters
• Financial
• Execution
• Technical
• Contractual or legal risk
• Commercial
Common Types of Risks
• Absenteeism
• Skills unavailable
• Resignation
• Ineffective training
• Staff pulled away
• Specs incomplete
• Time overruns
• Change orders
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Risk Factor Identification
• Brainstorming meetings
• Expert opinion
• Past history
• Multiple (or team-based) assessments
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Figure 7.4 Risk Breakdown Structure (RBS)
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Figure 7.5 Risk Impact Matrix
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Project Risk Scoring (1 of 2)
1. Use project team’s consensus to determine the score
for each Probability of Failure category: Maturity (Pm),
Complexity (Pc), and Dependency (Pd).
2. Calculate overall probability.
Pm + Pc + Pd
Pf =
3
3. Use project team’s consensus to determine the score
for each Consequence of Failure category: Cost (Cc),
Schedule (Cs), Reliability (Cr), and Performance (Cp).
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Project Risk Scoring (2 of 2)
4. Calculate Cf by adding the four categories and dividing
by 4:
Cf =
Cc + Cs + Cr + Cp
4
5. Calculate Overall Risk Factor for the project by using
the formula:
RF = Pf + Cf − ( Pf )(Cf )
Rule of Thumb:
Low Risk
RF 0.70
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Risk Mitigation Strategies
• Accept
• Insurance
• Minimize
• Workaround
• Share
• Other Mitigation Strategies
– Mentoring
– Cross training
• Transfer
• Contingency Reserves
– Task contingency
– Managerial
contingency
• Control and Documentation
– Change management
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Control and Documentation
Helps managers classify and codify risks, responses,
and outcomes
Change management report system answers:
• What?
• Who?
• When?
• Why?
• How?
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Project Risk Analysis and Management
(PRAM)
PRAM presents a generic methodology that can be
applied to multiple project environments, and encompasses
the key components of project risk management.
Key Features of PRAM
• Risk management follows a life cycle.
• Risk management strategy changes over the project life
cycle.
• Synthesized, coherent approach.
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Nine Phases of Risk Assessment
1. Define
2. Focus
3. Identify
4. Structure
5. Clarify ownership of risks
6. Estimate
7. Evaluate
8. Plan
9. Manage
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Summary
1. Define project risk.
2. Recognize the four key stages in project risk
management and the steps necessary to manage
risk.
3. Explain the Project Risk Analysis and Management
(PRAM) process.
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved
Copyright
Copyright © 2019, 2016, 2013 Pearson Education, Inc. All Rights Reserved

Purchase answer to see full
attachment

Order a unique copy of this paper
(550 words)

Approximate price: $22

Our Basic features
  • Free title page and bibliography
  • Plagiarism-free guarantee
  • Unlimited revisions
  • Money-back guarantee
  • 24/7 support
Our Options
  • Writer’s samples
  • Expert Proofreading
  • Overnight delivery
  • Part-by-part delivery
  • Copies of used sources
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

AcademicWritingCompany guarantees

Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.

Money-back guarantee

Academicwritingcompany.com always strives to give you the best of its services. As a custom essay writing service, we are 100% sure of our services. That is why we ensure that our guarantee of money-back stands, always

Read more

Zero-plagiarism tolerance guarantee

The paper that you order at academicwritingcompany.com is 100% original. We ensure that regardless of the position you are, be it with urgent deadlines or hard essays, we give you a paper that is free of plagiarism. We even check our orders with the most advanced anti-plagiarism software in the industry.

Read more

Free-revision guarantee

The Academicwritingcompany.com thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Academic writing Company requires that the you provide the request within Fifteen (14) days since the completion date and within a period of thirty (30) days for dissertations and research papers.

Read more

Privacy and Security policy

With Academicwritingcompan.com, your privacy is the most important aspect. First, the academic writing company will never resell your personal information, which include credit cards, to any third party. Not even your lecturer on institution will know that you bought an essay from our academic writing company.

Read more

Adherence to requirements guarantee

The academic writing company writers know that following essay instructions is the most important part of academic writing. The expert writers will, therefore, work extra hard to ensure that they cooperate with all the requirements without fail. We also count on you to help us provide a better academic paper.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2020 at 10:52 AM
Total price:
$26
The price is based on these factors:
Customer Academic level
Number of pages required
Urgency of paper