Risk Management Report

Running Head: Risk Management Report 1
RISK MANAGEMENT
NAME
INSTITUTION
PROFESSOR

Risk Management Report 2
Executive summary
Risk management involves identifying, evaluating, and prioritizing of risks as well as
minimizing, controlling, and monitoring the impact of their effects. Risk management involves
several steps to ensure that these risks are systematically solved. Risk management is also
represented in three different types such as strategic, reputational, financial, and operational as
well as compliance risk. Risk management is essential in a business since it helps the company to
take only risks that will contribute to the achievement of its primary objectives and still control
other risks.

Risk Management Report 3
Introduction
Regardless of risk management is such an essential factor in business, businesses are bound to
make mistakes. Business managers may consider risk as being bearable, but as time goes by,
they realize that the threat was not worth it. They also ensure that as a project begins, quality is
assured and controlled. Risk management planning involves the determination of how activities
in risk management projects will be approached, planned, and executed.
Risk identification and impact assessment
In a project, several risks are involved. They might be foreseen or not foreseen, some can be
controlled, and some might be out of our control (Van Staveren, 2018). The possible risks in our
case study are changing requirements, unclear specifications, unforeseen situations, neglecting
designs, technical risks, and specific risks. These possible risks are discussed below in details.
• Change of conditions is where a customer changes the specifications of their product or the
features in the product (Aqlan & Lam, 2015). It is considered a project risk since it is difficult to
be prepared for a change of requirement that might take place in the course of the project (Baker
& Hernandez, 2017). In our case, this risk is possible as well since it is the nature of customers to
change their minds concerning the products offered to them. The impact of this risk is that it can
lead to the Corwin Corporation, never fulfilling its duties assigned to them by the Peters
Company.
• Uncertain specifications-due to wrong project initiation, specifications may not be precise
enough or specific for developers to begin their work (Giannakis & Papadopoulos, 2016). This is
evident in our case study when the Peters Company presents unclear specifications to Corwin
Corporation. This risk can lead to the Corwin Company doing the wrong project hence never
satisfying the requirements of their customers.
• Unforeseen situations-This are those situations that aren’t expected in project duration (Van
Staveren, 2018). It might be when managers get sick or project developers. As for Corwin
Corporation, it is seen when the president is on vacation when the Corporation receives the
project assignment. This has a significant impact since the president is a crucial part of decision
making. Any failure of this project can be directly linked to the absence of the decision makers.
• Neglecting designs- Developers may ignore plans while trying to save time during a project
(Baker & Hernandez, 2017). This is well defined when Corwin Corporation is given 48 hours to
decide whether or not they will accept the assignment offered to them. The impact of this risk is
that it is possible to miss important details and end up doing a project not satisfying to the
customers.
• Technical risks- This revolves around budgeting, where one needs to fulfill a client while still
checking on the minimal usage of their resources (Cagliano, Grimaldi & Rafele, 2015). Corwin