Project Risk Management: Techniques and Strategies

This paper discusses project risk management techniques and strategies for chemical weapons inventory project. It covers the five steps of risk management, including risk identification, analysis, evaluation, control, and monitoring. It also explores two expert judgement techniques, Delphi and brainstorming, along with their advantages, disadvantages, and biases. Additionally, it discusses the 10 golden rules of risk management and techniques for risk identification. The paper concludes with a case study on Menlyn Park Shopping Centre expansion project.

Running head: RISK MANAGEMENT
Project risk management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Introduction......................................................................................................................................2
Question 1........................................................................................................................................3
1.1 Ways of risk management by mentioning risk management process....................................3
1.2 Advantages, disadvantages and biases of two expert judgement techniques........................5
1.2.1 Delphi Technique............................................................................................................6
1.2.2 Brainstorming.................................................................................................................8
Question 2......................................................................................................................................10
2.1 Discussion of 10 golden rules of risk management.............................................................10
2.2 Techniques for risk identification........................................................................................14
2.3 Risk determined the project.................................................................................................15
References......................................................................................................................................19

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Introduction
The paper mainly reflects on the procedure of project risk management. It is found that
Hermiston is one of the sites in USA that contain 12% of the chemical weapons related inventory
and are considered as the largest stashes within the country. It is considered to be quite
dangerous to inherent with such type of chemical as well as volatile weapons and therefore it is
necessary to make safety as one of the major priorities for the organization. After one year, the
project budget increases and therefore it is important to restructure the timeline for the other
campaigns. As per the CMA risk models, the site had only 1% of chance of meeting the project
deadline. However, it is found that entire project gets completed six months earlier than the
deadline of the treaty and thus saving millions of dollars. It is identified that the team uses proper
risk management strategies and further undertakes daily, weekly as well as monthly scheduling
meetings that helps in covering everything including the critical path analysis and thus the
project gets finished on time.
In this paper proper advice of the project manager will be elaborated for managing the
risks of the project and discussion on two different types of expert judgement techniques for
proper identification of project risk. Additionally, the paper also focusses on Menlyn Park
Shopping Centre expansion project for reflecting the rules of risk management. Moreover, risk
identification as well as proper risk analysis on the basis of the shopping mall project is
undertaken properly.

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Question 1
1.1 Ways of risk management by mentioning process of risk management
As a competent project manager, it is necessary to focus on the process of risk
management processes for managing the risks that occur within the chemical weapons inventory
project. According to Kerzner (2017), risk management is referred as a procedure that is mainly
used in order to determine, monitor as well as manage the various types of potential risks for
minimizing the negative impact that they generally have on the organization. For managing the
entire project management related risks, it is necessary to properly follow the five related steps
for managing the risk that are elaborated below:
Identification of potential risks: It is found that within this particular step, the team
members of chemical weapons inventory project needs to uncover, recognize as well as describe
the risks that are mainly affecting the project progress and the project outcomes. It is found that
there are a number of techniques including SWOT analysis, brainstorming, flowchart method as
well as risk questionnaire method (Cagliano, Grimaldi and Rafele, 2015). In addition to this, the
entire team of chemical weapons inventory project must utilize min map technique in order to
properly visualizing the various types of potential risks which can hinder the progress of the
project. The WBS of the project must be developed proerly by the team for clearly visualizing
the various tasks of the project and for determining the point from where the risks for the project
are emerging.
Risk analysis: After the risk of chemical weapons inventory project are determined by
the project team, then it is very much important to identify the consequence as well as likelihood
of each of the risk. The team generally need to properly understand the nature of each of the

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project risks for determining the various potential impact that it created on the goals and
objectives. Moreover, this particular information is also inputted within the risk register. It is
found that risk assessment helps in evaluating the exposure to different types of uncertainties that
is impacting the day to day operations of the various organizations for properly estimating the
damage that those events could generally create on the revenue as well as reputation of the
organization (Kaiser, El Arbi and Ahlemann 2015). The risk work should be done by effectively
by properly assessing as well as analyzing the risk of the organization for protecting different
assets and for properly optimizing the entire operational efficiency across the entire board in
order to save both money, time as well as resources.
Evaluate the rank of the risk: After the successful completion of risk assessment, the
project team members need to evaluate the risk. It is found that the risk evaluation must be
properly compared with the various estimated risk criteria. In addition to this, the risks are
ranked by properly identifying the magnitude for combining the different types of consequence
as well as likelihood (Hopkin 2018). It is quite necessary to make the decision about various risk
that is acceptable for ensuring the consequences that it will create on the project. This type of
risk rankings will generally be added within the risk register. Moreover, the priority of each of
the risks are generally evaluated by properly combining the effects of probability as well as the
impact of consequence that it creates. The greater the score of the parameters will be then higher
the risk factor will be prioritized in order to effectively mitigate the risks properly.
Risk control: After the evaluation of the risk, it is very much necessary to properly
control the risk. During this particular step, it is necessary to properly assess the higher ranked
risk in order to properly set out plan so that the risks can be treated or properly modified for
achieving the acceptable level of the risk. In addition to this, it is quite necessary to implement

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mitigation strategies for each of the risks that are identified for preventing the risks. The risk
treatment measures which are needed to be applied must be added within the risk register
(Kerzner 2019). It is quite necessary to eliminate the risk as much as possible and this is mainly
done by properly connecting with the various experts of the field to which the various risk
belongs to. Moreover, within this particular steps, different types of policies as well as
procedures must be implemented in order to avoid as well as minimize the risks quite effectively.
Furthermore, the risk treatment generally extends to risk transfer as well as financing of the risk.
Monitor and risk review: It is not possible to eliminate all risks which are generally
needed for the project. It is found that there are a lot of issues that are mainly related with
chemical weapons inventory project including safety risk that cannot be mitigated and therefore
proper strategies needs to be used for monitoring the project risk (Marchewka 2016). It is found
that the implementation of risk management system is needed for monitoring the risks that are
mainly associated with the chemical weapons inventory project. Moreover, when there is proper
change within the risk impact as well as probability then it generally helps in making sense for
adjusting the various mitigation strategies or proper assessment of the project schedule.
1.2 Advantages, disadvantages and biases of two expert judgement techniques
According to Binder (2016), expert judgement is one of the important as well as very
much useful technique that is mainly used during the project management activities. It is
considered as one of the important techniques that is used for managing the project risk
effectively. In addition to this, it is found that this particular approach not only helps in saving
time but also helps in highlighting the negative impact on the project progress (Olechowski et al.
2016). The role of the project expert is very much required during the procedure of planning as
well as risk identification procedure. Proper planning as well as risk identification is quite

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necessary for the proper success of the chemical weapons inventory project. In addition to this,
expert judgement is mainly used for different situations that mainly needs resourcing by
successfully completing, validating as well as assessing the impact of change as well as
predicting the occurrence as well as for making proper decisions within the project. The two
techniques of expert judgement are mainly elaborated below:
1.2.1 Delphi Technique
The Delphi technique is considered as one of the most important technique that is utilized
for the purpose of expert judgement. It is found that under this specific method, the group
estimates are generally returned to the various individual expert that review as well as forecasts
is generally received from the various experts (Liu, Meng and Fellows 2015). In addition to this,
it is found that the Delphi method is mainly utilized for reducing the different biased decisions.
When the Delphi method is used for chemical weapons related inventory project, then a number
of advantages can be gained. One of the main advantages that can be gained is the versatility of
this specific technique.
Advantages
It is found that this particular technique is mainly utilized within wide range of
environments including government planning, business as well as industry-based predictions and
for making a number of decisions within the project. The major important use of this technique is
in determining the issues that are present in the project so that the issues can be resolved quite
effectively (Rai, Agrawal and Khaliq 2017). It is found that this particular method is mainly used
for properly estimating the outcome as well as likelihood of the project. A group of experts
generally exchange their ideas as well as views in order to provide estimation as well as
assumption to a number of facilitators who generally reviews the data as well as issues which are

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mainly present within the summary report. The group members can be able to review as well as
discuss the risk report as well as summary report of the project and can be able to provide proper
forecast to the facilitator who will further engages himself in reviewing the issue (Shokoohyar,
Qi and Katok 2017).
Disadvantages
The Delphi technique is very much time consuming which further helps in rendering that
it is quite ineffective as well as fast whenever required. This technique is also considered to be
deficient for the fully thought out resolutions effectively. The people who generally acts together
within the group get ideas from other benefits (Arashpour et al. 2017). Therefore, it is found that
there are a number of insightful as well as pragmatic resolution for the problems which are
mainly offered to the people however its is found that the involvement of people is in group but
they generally operate independently. Another major drawback that utilizes Delphi technique is
that it is very much difficult for the researchers for successfully designing an important as well as
effective study. It is found that if the project coordinator is properly summarizing the responses
of the participant then it is necessary to take care about the full breadth as well as depth of each
of the expert (De Carvalho et al. 2015).
Biases
It is found that Delphi method is quite useful in reducing the biases when the objective
data is attainable and there is lack of proper empirical evidence such that the experimental
research is very much unrealistic or unethical such that it must be properly preserved for assuring
validity. In addition to this, it is found that there are a number of techniques that needs to be
reviewed for incorporating the Delphi method for controlling the various types of biases that are

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mainly determined within the project. It is necessary to provide special attention for focusing on
the utilization of different types of techniques when using proper Delphi method for determining
as well as quantifying different types of risks (Samset and Volden 2016).
1.2.2 Brainstorming
Brainstorming is a significant part that helps in identifying the process. It is one of the
best practices that helps in proper risk management. The project managers should consider
different opportunities as well as risk properly as the cost of mitigation issue can generally
increase if the project gets matures. Therefore, the project managers must front load their risk
management efforts as well as opportunity (Archibald and Archibald 2016). The main goal of
risk as well as opportunity identification is the development of proper risk register. In addition to
this, it is found that brainstorming helps in ensuring proper diversity of various types of ideas
within the workshop and therefore the team members generally needs to consider both risks as
well as opportunities.
Advantages
Brainstorming is considered as one of the creative methods that is utilized for the
development of proper ideas within the entire group. This particular method is mainly used for
the proper success of the project as it determines the different types of risks that are associated
with the project. The main advantage of brainstorming within a group is that it is a mutual
stimulation of different participants (Wang et al. 2016). This technique is mainly used for giving
free as well as open approach for encouraging everyone to properly participate so that the risks
that are linked with the chemical weapons inventory project can be easily identified for resolving
the risks properly. One of the major advantages of brainstorming is that it generally requires to
think properly for solving a certain type of issue for developing something very much

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innovative. The more once can be able to brainstorm, the better they will be able to encounter an
issue for thinking it quite critically. Moreover, brainstorming helps in making proper decision as
well as assist in building team for the executing a project effectively (Hornstein 2015).
Disadvantage
It is found that the sessions of brainstorming is very much time consuming and it will
continue for hours if proper time limit is not provided and thus it can create negative impact on
the regular duties of the team by increasing the entire workloads. In addition to this, it is found
that the session of brainstorming is mainly democratic in nature. It is found that as long as
everyone in the group is willing to compromise as well as develop proper ideas then it is needed
to solve the problem as the brainstorming activity can able to end the stalemate (Zou, Kiviniemi
and Jones 2017). Moreover, it is found that it helps in promoting different types of fights as well
as arguments which generally destroys the relationship with other colleagues. As brainstorming
is dependent on different types of factors and therefore it is quite ineffective if some of the
factors are not achieved and therefore it cannot always be the correct choice for determining
risks or for making project related decisions.
Biases
It is found that the group brainstorming is one of the tendencies for different types of
hidden biases for dominating the ideas. In order to reduce biases while undertaking
brainstorming, it is quite important to consider group mix for ensuring the willingness to hear
different types of voices (Papke-Shields and Boyer-Wright 2017). It is found that too much
dominant personality within the group can stifle the voices. In addition to this, it is necessary to
share the ideas for brainstorming alone for reducing the likelihood.

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Question 2
2.1 Discussion of 10 golden rules of risk management
It is found that in order to manage the risks that are associated with the “Menlyn Park
Shopping Centre Expansion”, it is found that 10 different golden rules need to be followed that
are mainly elaborated below:
Rule 1: Making risk management as the part of the project
The first most essential need to reflect on the proper management of project risk. If risk
management is not properly embedded then one does not need to reap the entire benefits that are
related with the entire approach (Silvius et al. 2017). One needs to encounter a number of
approaches within the company for effectively managing the risks. Moreover, professional
companies generally use risk management as one of the important parts for proper operations.
Rule 2: Determining risk in the early phase of the project
The first step within the project risk management is to determine the various risks which
are generally present within the entire project. It mainly needs proper mindset which focuses on
different future scenarios (Brack et al. 2015). People who are associated with the Menlyn Park
Shopping Centre Expansion project must use their experience as well as expertise in properly
determining the risks which can occur within the expansion project. It is quite important to use
different types of identification method for dealing with the risks properly.
Rule 3: Communicate about risks
One of the best approach is to include proper communication within the tasks for carrying
out the project and if one have a proper team meeting then the project can be considered as one

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of the part of default agenda and this further reflects that risks are significant for the project
manager and proper discussion with the team is necessary to reducing the complexities
(Mahmoud-Jouini, Midler and Silberzahn 2016).
Rule 4: Consider both opportunities and threats
The project risk generally has negative impact which can harm the project but modern
approaches of risk also reflects on positive risks which helps in providing opportunities to the
risk. These are considered as one of the uncertain events that are found to be very much
beneficial for the entire project as well as organization (Zhang 2016). Moreover, a number of
project team generally requires to struggle for crossing the finish line that is needed to
overloaded the entire work.
Rule 5: Clarify ownership related issues
It is found that some of the project managers generally think that they have generally
developed a list of risk and this must be a starting point because in the next step, it is necessary
to make clear for checking the person who will mainly be responsible for the risk (Bourne 2016).
After determining the ownership of the project, it will be quite easy to clarify the ownership of
the risk effects such that the line manager will be able to pay proper attention to the project.
Rule 6: Prioritize risks
It is necessary to properly prioritize the risks by analyzing the impact that they will
mainly create on the entire project. For prioritizing the risks that occur within Menlyn Park
Shopping Centre Expansion project, it is quite important to spend more time of the project that
generally cause biggest loss (Zou, Kiviniemi and Jones 2017). The impact that the project will be

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determined for prioritizing the risk on the basis of the impact and likelihood that the risk will
create on the project.
Rule 7: Analyze risks
Proper knowledge as well as information about the various project risks are generally
needed to be considered as one of the pre-conditions for getting good response and therefore it is
necessary to undertake risk analysis at different level of the project (Xia et al. 2018). If it is
required to properly understand the risk at different level then it will be very much beneficial in
properly thinking the effects that it generally creates.
Rule 8: Planning as well as implementing different responses of the risk
It is necessary to implement the risk response properly as this is considered as one of the
activities that generally helps in adding value within the entire project. It is quite necessary to
prevent the threat which generally occurs in order to reduce the chances of negative impacts.
There are a number of rules that helps in mapping, prioritizing as well as understanding the risk
for making a sound risk management plan (Hofman, Spalek and Grela 2017).
Rule 9: Register project risks
It is quite important to maintain the risk log for the Menlyn Park Shopping Centre
Expansion project risk in order to enable as well as for viewing the progress in order to make
sure that they generally do not forget one or two risk. It is also one of the important tools of
communication that helps in informing the team members as well as project stakeholder that is
generally going within the project.

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Rule 10: Track risks and related tasks
The risk register that is needed to be created for the Menlyn Park Shopping Centre
Expansion project then one needs to properly track the risk and their associated tasks quite
effectively. Proper integration of the risk related tasks on the daily routine is considered as one of
the easiest solutions (Chen et al. 2018). Proper risk related tasks must be properly carried out for
determining as well as analyzing the risk for generating, selecting as well as implementing the
responses. This is quite baneful in mitigating the risks and resolving the issues that the project
team mainly experiences while getting involved with the project.
2.2 Techniques for risk identification
It is found that in order to determine the risks within the Menlyn Park Shopping Centre
expansion project, it is very much important to use different types of techniques which are
illustrated below:
Brainstorming: It is found that brainstorming method is mainly utilized for determining
the various risks which are associated with the project Menlyn Park Shopping Centre expansion.
The brainstorming questions are planned before and then proper questions related with schedule,
quality, budget as well as scope are asked so that proper risks can be easily identified (Du Plessis
2019). The brainstorming technique is quite beneficial as well as helpful in properly identifying
the issues that the project team faces while expanding the shopping Centre.
Assumption analysis: As per the PMBOK, the project manager generally considers
various factors which can be true as well as real for proper proof or demonstration. It is found
that the assumptions are generally considered as the sources of risks that generally concerns the

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project manager for properly documenting the assumptions which are related with the Menlyn
Park Shopping Centre expansion project risks (De Araujo et al. 2017).
Interviews: For successfully determining the various risks which are linked with the
Menlyn Park Shopping Centre expansion project, it is quite important to properly select the key
stakeholders whom the project team leader can interview for determining the risks that they
generally experience while executing the project properly. For interview, a question set is
prepared that is asked to the stakeholders who are involved within the project and then their
answers are documented and on the basis of their answers, the risks are prioritized for analyzing
them so that the risks can be resolved effectively.
Cause and effect diagrams: The project managers of Menlyn Park Shopping Centre
expansion project can utilize cause and effect diagrams for determining the causes as well as
facts that are mainly associated with the project risks (Sunder 2016). If the causes of the project
are properly addressed then one needs to reduce as well as eliminate different types of project
challenges quite effectively. This helps in reflecting the issues which generally can create impact
on the project progress such that the entire risks can be resolved properly.
2.3 Risk determined the project
The various risks which are associated with the Menlyn Park Shopping Centre expansion
project are mainly reflected with the help of risk response matrix by Gido and Clements which
are mainly listed below:
Risk
ID
Risk Impact Likelihood Impact Responsibility Response
plan
1 Schedule Delay in the High Medium Project The

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slippage project manager schedule of
the project
needs to be
tracked by
the
managers
on a
regular
basis for
avoiding
delays in
the project.
2 Budget
shortfall
Financial loss High High Financial
manager
For
resolving
the
financial
conflict in
the project,
it is
necessary
to use the
resources
properly

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and
addition to
this
keeping
track on the
expenditure
will also be
useful.
3 Improper
design
Problem in
accomplishing
project goals
High High Designer The
designer
must check
the design
of the
project for
making
sure that
the goals
and
objectives
of the
project are
achieved so
that the

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expansion
can be
done quite
effectively.
4 Lack of
management
Delay in the
project as well
as financial
issues
Medium Medium Operational
manager
It is
important
to utilize
the
strategies
that would
be
beneficial
in properly
managing
the project
effectively.
5 Scope creep Extension in
the completion
date and
chances of
increasing
budget of the
project.
Medium Medium Project planner In order to
avoid the
problem of
scope
creep, it is
necessary
to obstruct

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changes
within the
entire
project.
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