Risk Management Report: Risk Management Process and Analysis

This report provides an overview of risk management, outlining its importance in identifying, assessing, and controlling threats to an organization's assets and capital. It details the risk management process, including risk assessment and analysis, risk evaluation, and risk treatment and response. The report further explores two types of project risk analysis: qualitative and quantitative risk assessments, explaining their methodologies and applications. Additionally, it discusses contingency planning within project risk management, emphasizing the development and maintenance of frameworks to address potential incidents. The conclusion summarizes the key steps in risk management, the types of project risk assessments, and the role of contingency planning in mitigating risks.

Running head: RISK MANAGEMENT
RISK MANAGEMENT
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Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1. Risk Management Process..............................................................................................2
2.2. Types of Project Risk......................................................................................................3
2.3. Contingency plan in project risk management................................................................3
3. Conclusion..............................................................................................................................4
4. References..............................................................................................................................5

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1. Introduction
Risk management is the method to identify, then assess and finally control threats to
earnings and capitals of any organization. These type of threats have occurred from several
sources for example legal liabilities, errors of strategic management, natural disasters, the
uncertainty of finance and accident.
2. Discussion
2.1. Risk Management Process
The procedure of risk management contains three steps, one is risk assessment also
analysis, second is risk evaluation and final is risk treatment and response (Firmenich 2017).
All these phases of the risk management process are as follows:
i) The risk assessment also analysis:
The starting step of this procedure is recognised as the risk assessment also analysis.
This risk assessment is estimated the introduction of the organization to the undefined events
which can influence the day to day actions also evaluations the destruction which actions can
have on the reputation and the profits of this organization. This step is helped any
organization for securing their assets, improving the decision making and enhancing the
operational effectiveness over the board to save the time, resources and money.
ii) Risk evaluation:
After completing this first step, the risk evaluation must take place. It equates the
projected risks in contradiction of the criteria of risk which this organization is already
recognised (Gao et al. 2018). This risk criterion can be contained related costs and the
benefits, the legal necessity, malfunctions of the system and the aspects of socio-economic.

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iii) Risk treatment and response:
The ending step in the procedure of risk management is the action and reaction of the
risk. It is the implementation of the techniques and the policies which will help to avoid or to
reduce the risks. This risk treatment is also extended to the transfer of the risk and financing
of the risk.
2.2. Types of Project Risk
There are two types of project risk analysis methods are present, one is the Qualitative
and another is the Quantitative risk assessment which is described below:
i) Qualitative Risk Assessment:
It is described as the method to identify also prioritize the risks for the future
assessment (Hennink, Hutter and Bailey 2020). Many types of methods of qualitative risk
assessment are used which are Brainstorming, Assumption analysis, Judgment of Expert,
SWOT analysis and many more.
ii) Quantitative Risk Assessment:
It is described as the method of numerically analysing risks to recognise the effects on
the outcome of the project (Christoffersen et al. 2019). This is involved to assign the rating of
numerical or quantitative to risks which are reflected the occurrence probability of this.
Several generals of this techniques are analysis of cost risk, analysis of sensitivity, breakeven
analysis and many more.
2.3. Contingency plan in project risk management
Development and the maintenance of framework for replying to assumed and definite
incidences with important significances for public safety, health, or the welfare such as exotic
human outbreak, serious food pollution or disease of plant disease. The aim of this is to

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reduce economic loss, reduce the disruption of the supply chain of food and diminish the
damage of the environment.
3. Conclusion
From the above project, it can be concluded that there is some steps are present in risk
management. Also, there are two types of project risk assessment are present, qualitative and
quantitative and describe the contingency plan in risk management.

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4. References
Christoffersen, L., Reinecke, S., Shoesmith, M., McKennirey, E., Pilgrim, L. and Rae, D.,
2019, September. Innovative community engagement for the quantitative risk assessment for
a mine closure and reclamation plan. In Proceedings of the 13th International Conference on
Mine Closure (pp. 355-368). Australian Centre for Geomechanics.
Firmenich, J., 2017. Customisable framework for project risk management. Construction
Innovation.
Gao, N., Chen, Y., Wang, W. and Wang, Y., 2018. Addressing project complexity: The role
of contractual functions. Journal of Management in Engineering, 34(3), p.04018011.
Hennink, M., Hutter, I. and Bailey, A., 2020. Qualitative research methods. SAGE
Publications Limited.