Learning to Determine Risk Objectives and Establish Project Risk Context

P1: Activity 1: Learning to determine
risk objectives and to establish
project risk context
ACTIVITY DESCRIPTION:
To manager risks better, you need to know how to determine risk
objectives and standards, with input from
stakeholders. Moreover, all managers should be ready to establish project
risk context to inform risk management processes.
Task
In your own words, try to answer the following questions:
Q1. Give three examples of risk objectives.
3 examples of risk objectives are as follows: -
1. Building safeguards against the surprised earning
2. Proper management internal resource’s for saving money
3. Allocation of capital in a more reluctant and efficient manner
Q2. For your industry, what are the relevant standards and legislation
regarding risk management?
The relevant standards that are used in my company are as follows: -
 ISO 31000 2009
 A Risk Management Standard – IRM/Alarm/AIRMIC 2002
 ISO/IEC 31010:2009
 COSO 2004 - Enterprise Risk Management - Integrated Framework
 OCEG “Red Book” 2.0: 2009 - a Governance, Risk and Compliance Capability
Mode
Q3. What areas might project risk context include?
 Project risk context concludes improper management of the entire system
 Inefficient resource management
 Inefficient employee management
 Risk attitude of the team members are also one of the major issue in the
prosecution system

Q4. Choose and outline one external/strategic and one
internal/organisation context for a past project you have been involved in
and explain how they affected the project in no more than 200 words
each.
External/Strategic context example include usage of PESTLE analysis.
PESTLE analysis is considered to be an external/ strategic context. This
process will help in realising the strategic issues that are present in the
curse of management of the project. With the help of this project the main
advantages that is present includes proper estimation of the political
factors, Economic factor, Social factr, Technological factor, legal factor
and the environmental factor. Proper knowledge in this section acts
helpful in commence of the project
Internal/ organizational context examples include performance of SWOT
analysis. With the help of the SWOT analysis the main advantage that is
gained includes understanding the Strength, Weakness, Opportunity and
Threat of the organization. The approach that is take in order govern the
entire business organization and makes the functioning are efficient. With
the help of this context the entire managerial schema is affected. In this
phase the employees of the organization is governed as per the
responsibilities that are provided to them. This section is considered to be
one of the most important aspect of the project
P1: Activity 2: Identifying project
risks
ACTIVITY DESCRIPTION:
To manager risks better, you should learn how to identify project risks
using valid and reliable risk identification methods. Besides, knowing how
to classify project risks within agreed risk categories is
essential. Moreover, it is essential to explore how to determine risk
analysis classification criteria and apply to agreed risk ranking system.
Task 1. Define what project risks are.

Project risk are defined as terminologies that reduces the efficiency of the project. This
decrease in efficiency of the project is the reason of failure of many project. These risks
that are detected are to be mitigated in order to portray the entire system in a better
manner. This is one of the major reason that portraying of the risk helps using
estimating the issues that are present in the project
Task 2. How might you go about identifying project risks?
Methods that will be used by me for better identifying the project risks are as follows: -
 Brainwriting: Brainwritings are similar to brainstorming. Trigger session is also
held in this process. In this case the ideology of one person is recorded and is
passed onto another person as per the projection if the entire system. This is one
of the most efficient manner of risk detection techniques
 Statement of work: statement of work helps us in understanding the work that s
to be performed. This section is mainly concerned with the processing of the
project as per the commencing of the pre scheduled deliverable. In case the pre
scheduled deliverable are not being met risk identification gets easier
 Work Break down structure: work breakdown structure provides a basic form
of all the framework that is to be performed in order to compete the project.
This work break down structure also helps in identifying the risk on deviating
from the stated framework.
Task 3. Outline two methods of qualitative analysis for likelihood.
 Risk Categorization: Grouping of the risks acts beneficial in completion of the
project with proper risk assessment with the help of qualitative analysis.
Categorizing of risk helps the project manager to analyse them in a better
manner and this diversification enables them to have a better management
system.
 Urgency Assessment: in qualitative assessment risk gradation is very important.
This is the main reason urgency assessment provided such high stature
Task 4. Outline two methods of quantitative analysis for likelihood.
2 methods that are used for detection of risk are as follows: -
 Monte Carlo simulation: Monte Carlo simulation is also stated as the probability
simulation. With the help of the probability matrix the main advantage that is
enjoyed incudes better commencement of the project as the project management
is performed as per the project termination.

 Decision tree analysis: with the help of the decision tree the main advantage that
is enjoyed includes proper analysis of the decisions that re made as per the
requirement of the solution. This reviewing of the decisions help in better
management of the project risk assessment
Task 5. Using the risk identification template outlined in the learner
guide, complete risk identification for a project of your choosing in the
workplace.
Risk ID: 1
Risk description: Lacking diversity in
the work culture of the employees
of the organization
Predicted Impact: this is will
decrease the efficiency of the
project. Contentment of the
employees will also decrease
Response Recommendation: Provide proper training
Proposed action: the employees who will be performing similar kind of
jobs through put must be provided proper training in order to give them
a growth in carrier
Resource Required: Training
materials
Person responsible: Research and
development team
Response schedule: After working hours this training will be provided
Monitoring requirement: monitoring of the entire process is required
Project manager:
Authorization:
Risk ID: 2
Risk description: Lacking
transparency in the business
organization
Predicted Impact: lack of
coordination skill among the
employees of the organization
and hence losing the efficiency of
the project completion
Response Recommendation: Annual meetings of the employees

Proposed action: Put the conflictive employees together in a project and
this will lead to the fact that the data management will be processed by
them and they will require to coordinate and this will increase the bond
among the employees
Resource Required: Project of similar
genre
Person responsible: Conflictive
employees
Response schedule: During work hours
Monitoring requirement: monitoring of the entire process is required
Project manager:
Authorization:
Risk ID: 3
Risk description: High competition Predicted Impact: decreases the
sales of the product
Response Recommendation: Increase diversity of the product
Proposed action: improve the research and development sector of the
business organization and hence increase innovation in the project
commencement
Resource Required: Research and
development team
Person responsible: Project
manager
Response schedule: During work hours
Monitoring requirement: monitoring of the entire process is required
Project manager:
Authorization:
Task 6. After exploring information provided in the unit, answer these
questions please:
1. What are the risk classifications for your industry sector?

The risks are as follows: -
 Competitive Risk (Tolerable )
 Operational risk (Unacceptable)
 Strategy risk (Undesirable )
2. Outline the three most common types of risk in a project in no more
than 100 words each.
Three most common risks are as follows: -
 Lacking diversity in the work culture of the employees of the organization
 Lacking transparency in the business organization
 High competition
3. What actions should you take for the following risk classifications:
 Unacceptable: Prevent from occurring
 Undesirable: Mitigate the risk
 Tolerable: Sustain the risk
 Broadly acceptable: Risk retention
Task 7. In your own words, please explain:
1. What is the relationship between risk classification and the impact of
risks?
Risk classification is the initial step that is needed to be performed before analysing
of the risk. After classification of the risk, impact of the risk can be determined,
This 2 stages are interrelated on each other
2. How do you come up with a risk ranking system in your organisation?
Risk ranking must be performed keeping in mind the probability of
occurring and the impact it causes on the functioning of the project. In case the
risk has higher probability of occurrence as well as high impact the risk rank will
be very high and so on.
P1: Activity 3: Using risk analysis
processes
ACTIVITY DESCRIPTION: