Project Management: Diploma of Business Management

Running head: PROJECT MANAGEMENT
Project Management: Diploma of Business Management
Name of the student:
Name of the university:

1PROJECT MANAGEMENT
Answer to Question 1
a) Project risk is referred to as uncertain event or condition that occurs during project
progress period and impacts negatively any project outcome.
b) The process through which theses risks can be managed or mitigated are known as risk
management.
c) Risk management process can easily spot the reasons for which project success or
outcome are interrupted, escalations become clear and easier. The decision making becomes
focused and the communication becomes elevated.
Answer to Question 2
Examples of potential impacts of risks are as follows:
 Healthy and safety
 Sustainability
 Time and reputation
Answer to question 3
Various project parties may face major risks throughout project progress period such as
finance party, third party, stakeholders, sponsors etc.
 If the budget for the project is not estimated accurately with feasibility study then
the entire project will face issues with budget over allocation.
 If the stakeholders and resources for a specific project are not properly designed
then both budget overflow and overrunning cost issue may occur.

2PROJECT MANAGEMENT
 If useful resources are not accurately pointed then the entire project will fail to
deliver expected objectives and outcomes.
Answer to question 4
a) Risks from external sources
 Risks from the competitors
 Law and legislation risks
 Risks with externally emerging technologies
b) Risks from internal sources
 Technical risks such as unforeseen changes
 Physical risks
 Operational risks
Answer to Question 5
The steps of risk assessment are as follows:
 Identification of risks or hazards
 Analysis of the risks
 Evaluation of the risks
 Prioritizing the risks
 Mitigating the risks

3PROJECT MANAGEMENT
Answer to Question 6
The sources of information that could be used for gathering information regarding
potential risks and are as follows:
 Risk register and risk report designed by the organization itself
 Issues log
 Audit reports
 Business Impact analysis
 Internal and external reviews
Answer to Question 7
All identified risks can be controlled through different approaches and these are as
follows:
 Elimination of the risks: In this phase the risk can be
 Substitution of the risks
 Isolation of the identified project hazards
 Minimization of the risks through rearrangement
Answer to Question 8
There are different ways through which the organizational risks can be minimized d and
the steps are as follows:
 Identification of potential risks at the project initiation phase
 Communicate regarding the risks by considering possible opportunities