Project Risks vs. Activity Risks in Management, Coursework Example

Quantitative Risk Assessment Finds for a Solid Empirical Foundation

Tell how carrying out the project helps to minimize the risks associated with the overall outcome.

First you must quantify and analyze activity and project risks to correctly analyze them. Risks must be separated from the highest risks to the lowest. You must correlate what is the most uncertain about a risk in order to build a foundation to analyze and manage the risks. Quantitative methods reveal much about the risk for it provides data and magnitude so that one can budget the reserves needed for the riskier projects. You must look at loss versus likelihood which is the basics of risk assessment and analyzation. You must have a solid base or empirical foundation of which to analyze all activity and project risks.

Management Considering the Risks. Differentiate between managing project risks and activity risks.

Managers should consider what activity risks should be identified according to an activity design document. You must add the risks that are outside the realm of the activity design document. Then you must calculate the individual risks to the overall activity risks through the use and concept of a risk register. Describe the risk, the potential impact of the risk and make a risk profile. Consider how to mitigate the risk if it becomes real. Consider if a person can control the risk. Lastly, consider who and how the risk should be managed.

Potential activity risks are economic, legal and regulatory, political governance and security, public health and infrastructure. You must consider the threat of relative harm to absolute harm when identifying with vulnerable groups as the young of age. Consider the likelihood of the risk to occur and rate the risk from low to medium to high.

Project planning risks analysis is a vehement must have in an organization. The risks should be scaled according to the strength and size of the project being performed. Schedule, scope and resource should be considered and entertained to identify the risk elements with thorough description of the project risk. The risk framework determines the risk complexity of a project. This creates structure and size which aids to work with technology and risk assessment. Work breakdown structure defines the risk and uncertainty of the project risk. The Program Evaluation and Review Technique (PERT) is a tool of management used to analyze tasks of a given project. It was developed by the United States Naval Academy. It further simplifies scheduling and planning for large complex risks associated with project risks. It incorporates uncertainty without specifically knowing full details and duration period of a certain project. The Navy used it with a submarine project with logical precedence incorporated before another task and be taken in and facilitated into motion.

Modeling Techniques and Carrying Out the Project

Do you logically deny or accept risks for a project? Uncertainty means there are different values that can exist for a possible loss or gain within a project. First you must identify the risk, quantify the risk, do a risk analysis and present the results. This is accomplished through detailed workshops and further risk modeling techniques. Carrying out the project helps to analyze overall project risks by looking at the end product before beginning the task. The potential risks can be determined by proposing a legitimate outcome eliminating real risks when the project is set into motion. Adding up the risks with individual activities within a project “does not” produce an accurate assessment of overall project risks. This is because all risks must be considered as a whole to manipulate the onset of an individual risk. Each individual risk is indicative of itself and can only assess that one risk and not the project risk as a whole.

Choose three risks associated with aggregate risks and their outcome.

Risk factors tend to increase aggregate risks. I chose three risks factors of inexperienced managers, unfamiliarity of project risks and poor communication within the project. A systematic risk is an undiversified risk. Broad market returns, holdings and aggregate income affect and increase aggregate risks. Inexperienced managers pose a threat to individual risks which pose an overall aggregate risk factor on the entire submersion of the project. Unfamiliarity of the project risks cause poor methodology and assessment techniques to appear and underestimate the total risks with the project. Poor communication causes a breakdown in the link to relieving risks associated with the project from start to finish even if the outcome is projected then worked from the start. Risks must be ascertained and embodied seriously if aggregate risk factors are to be lowered or eliminated in full.

Let’s put this into a layman’s everyday perspective. For example aggregate risks are from exposure to multiple pathways and routes of which to be exposed. These risks vary from day to day, month to month and year to year. An estimate of probability of a risk should be assessed to prevent or lower risks associated with aggregate risks. There are multiple conversations associated with aggregate risks. These should all be vehemently considered individually and as a whole through a risk assessment plan before undertaking the project at hand. This will ensure minimal risks and a healthy and successful project and management approach. All risks cannot be totally eliminated but they sure can be lowered to incorporate the “do’s and the don’t’s” into the project to make it successful at the end.