Project Risk Management: BSBPMG517 Learner Workbook Activities

This assignment is a comprehensive exploration of project risk management, addressing key concepts and practical applications. It begins with an overview of risk objectives, including examples like enhancing cost efficiency and improving risk response mechanisms. The assignment then delves into risk identification, exploring project risk context (external/strategic and internal/organizational), and various methods for identifying and analyzing project risks, such as qualitative and quantitative analysis techniques. It also covers risk classification, providing classifications for different industry sectors. Furthermore, the assignment examines the relationship between risk classification and impact, the creation of a risk ranking system, and the use of SWOT analysis for risk classification. It concludes by exploring organizational processes for identifying risk priorities and actions to take for different risk classifications. The assignment offers a detailed analysis of project risks, demonstrating a strong understanding of risk management principles and practices, including the application of various tools and techniques to assess and mitigate potential project challenges.

ASSESMENT

Table of Contents
Activity 1A.............................................................................................................................4
Activity 1B.............................................................................................................................4
Activity 1C.............................................................................................................................5
Activity 1D.............................................................................................................................7
ACTIVITY 2....................................................................................................................................8
Activity 2A.............................................................................................................................8
Activity 2B.............................................................................................................................8
Activity 2C.............................................................................................................................9
Activity 2D...........................................................................................................................10
ACTIVITY 3..................................................................................................................................10
Activity 3A...........................................................................................................................10
Activity 3B...........................................................................................................................11
Activity 3C...........................................................................................................................11
Activity 3D...........................................................................................................................13
ACTIVITY 4..................................................................................................................................14
Activity 4A...........................................................................................................................14
Activity 4B...........................................................................................................................14
Activity 4C...........................................................................................................................16
Activity 4D...........................................................................................................................16
ACTIVITY 5..................................................................................................................................17
Activity 5 A..........................................................................................................................17
Activity 5 B..........................................................................................................................17

MAIN BODY
ACTIVITY 1
Activity 1A
Three Examples of Risk Objectives
Risk objectives consider like a factor that increase the level of likelihood and determine
some positive changes in the organisation. It is a fact that if it decline the likelihood and it give
negatives carnages. Three example of risk objectives are given below -
Enhance Cost Efficiency – In this risk objective, cost is the main factor that necessary to
determine in an effective manner. To improve the efficiency of cost in context of project risk
management is consider the main objectives of the risk.
Increase Risk Response Mechanisms – This is also considering as a specific objective of the
risk. This objective help to enhance the risk response of the project and follow those mechanisms
that help to increase the low productivity, resolve the critical risk of the project.
Increase Management – This risk objective help to improve the management process and
determine all the resources to the lower costs of the project.
Relevant Standards & Legislation regarding to Risk Management
Risk Management standards consider as a strategic process that mainly start with the
objective of the organisation and also help to identify the risk and determine the mitigation of the
risks with the use of specific practices. There are some specific standard in risk management
such as industrial enterprises agreements, industry standards, organisational policies,
organisation system and procedures.
To manage the risk properly it is also necessary to use law and legislation so that
employees of the organisation who are considering the part of the project feel protect and secure.
Most of the organisation uses some specific legislation for the risk management of their
members. Some specific laws and legislation are Health and Safety laws, Management and
health & Safety at work regulation, monetary law, operational law and Reputation law etc.
Activity 1B
What areas might project risk context include?

Project risk identify the specific risk identification methods and it also contain that those
risks identified by the project manager and employees are taken on a serious note so that
employees can implement properly and utilise all the allocated resources to control the risk.
Project risk includes some area such as opportunities, thereat, Hazards and prediction of the
future events.
One external/strategic and one internal/organisation context for a past project
External /strategic Context
In external /strategic context, organisation can consider those factors which are applicable
to affect the organisational project performance by the outside factors that project manager
cannot control.
Financial Issues – This is also comes under the external issue for the organisation. To address
this issue, project manager can consider all the cost which are necessary for the project and also
allocate the cost department wise and consider that which are involved in the project. To prepare
the project budget and also determine those factors are financially weak. Stakeholders of the
organisation can give their contribution so that organisation will solve the financial issues.
Financial issues give negative impact on the performance of the organisation.
Internal /Strategic Context
Goal / Objectives of the Organisation – Organisational goals are the main component of the
internal/ strategic context of the organisation. To fulfil the objective of the organisation comes
under the priority list of the organisation. For example- Tesco is a largest organisation and its
main goal to address all the requirements of the customers with their high quality of products and
services. Organisational goals give positive impact on the project.
Activity 1C
Define what project risks?
Project risk mainly occur when project deadline not properly followed by the project
manager or employees then risk factor arise. Lack of financial resources and lack of workforce
are also occurring the risk in the project. There are many types of project risk such as scope risk,
schedule risk, resource risk etc.
Identifying Project Risks

There are many way to identify the project risk such as interview, brainstorming, analysis
, Nominal group techniques and identify the project risk through causes & effect diagrams. With
the help of these factors project manager easily recognise the project risk. For example – in
interview session project manager can select the key stakeholders of their project.
Two methods of qualitative analysis for likelihood
Risk Probability & Impact Assessment – This is considering the most useful methods of
qualitative likelihood. Risk impact assessment determines the impact on the project objectives
like cost, performance, schedule and quality. In the qualitative analysis of the likelihood, positive
and negative risks both factor consider.
Risk Categorisation – On the basis of qualitative likelihood, risk can be determine in some
categories and these risk categories may contain that areas which are affected by the risk. So to
resolve the risk problem, it is necessary to focus on the causes of the risk.
There are various indicators identified in the qualitative analysis of likelihood such as symptoms
of risk, risk rating etc. expert judgement also involved in qualitative analysis.
Two methods of quantitative analysis for likelihood
This analysis basically based on the people opinion and their judgements. Project
manager need to consider statistical risk calculations to determine the quantitative analysis for
likelihood.
Interviewing Method – This method consider the most appropriate to do the quantitative
analysis. It use historical data for the interview purpose and so that project manager can access
the more and less priority of project risk to deal with the present situation.
Monetary Value Analysis ( EMV) - Through this analysis, project manager can easily calculate
the average result for the specific events that occur in an uncertain situation. Through this
analysis, all the opportunities are considered as positive values and threats are contain as
negative value.
To deal with the quantitative analysis, project manager can use risk management plan,
schedule management plan, risk register etc.
Risk identification template
Risk identification methods include some steps like conducting and identifying the
qualitative and quantitative analysis of the risk, take lesson form the past project, subject matter

expert etc. There are various steps involved in the risk identification templates which are given
below-
Critical Success Factors – In this step, project manager need to consider those factors which are
necessary to identify the risk such as – Background information of the risk , evaluation of the
past projects , analyse the risk statements and do assessment of the risk, registers the risk and at
the end consult with the stakeholders.
Involved Personnel – In this step, project manager can include the stakeholders, experts,
managers and team members. Project manager take information to these people so that they can
help to identify the information.
Limiting Factors – In this step, project manager those factors that help in risk assessment of the
project. Some factors involved such as cost, external factors, predictions and irrelevant data.
Risk Objectives – This step also help to address all the risk and identify the risk which is existing
in project.
Activity 1D
What are the risk classifications for your industry sector?
Project manager classify the risk on the basis of few factors such as unacceptable,
undesirable, tolerable and last broadly acceptable. All these factors are involved in the risk
classification so that project manager easily maintains the risk in a proper way. For example –
Tesco company project manager can classified their risk on the basis some criteria so that they
can easily access all the information about the risk factor.
Three most common types of risk in a project
There are many types of risk involved in the risk project which are given below -
Scope Risk – In this risk, project manager can determine the objectives of the risk. In this risk,
scope creep, software defect, hardware defect consider.
Schedule Risk – This type of risk contain some critical path that help to obtain the objective of
project. Some types of schedule risk are estimation errors, poor decision-making, delay in
hardware and software.
Resources Risk - This type of risk determine the correct resources of the such as unskilled staff,
project members, inappropriate technologies.
What actions should you take for the following risk classifications?

Unacceptable – In this risk classification, project manager mainly stop the activity and try to
transfer the risk.
Undesirable – In this risk classification, project manager can transfer the risk and then treat the
risk on the basis of likelihood and consequences of the risk.
Tolerable - In this classification, project manager treat the risk also on the basis of consequence.
Broadly acceptable – In this risk classification, project manager nothing to do with the risk so he
or she finally tolerate the risk.
ACTIVITY 2
Activity 2A
What is the relationship between risk classification and the impact of risks?
Risk classification is the methods that mainly divide the risk in to various categories and
impact of risk determine the affect the risk on the particular project whether it is positive risk or
negative risk. Project manager of the Tesco can classification of the risk on the basis of business
activities and diversified in many functions. How do you come up with a risk ranking system in
your organisation.
Risk ranking system allows the project manager to identify and monitor the issues in the
organisation. Project manager of the Tesco can manage the risk on the basis of some facts like
potential of staff members and quality of the employees. There are few facts involved in risk
ranking system such as -
 Classification of the ranking from lower ranking to higher ranking
 consider the consequence of the risk scale
 Analyse the impact of risk scale
 Organisation risk methods
 Predetermine the rank criteria
Activity 2B
What information would you need for a SWOT analysis for risk classification?
There are various information need to conduct the internal analysis of the risk
classification. In SWORT analysis, project manager can identify the strength, weakness,
opportunities and threats of the project and then they can identify the risk factors. There are
various information need to analyse in the SWOT analysis of the risk classification.

Strengths – In this step, project manager can identify and analyse the knowledge and skills of the
staff members.
Weaknesses – In weakness, low brand awareness of the project considered.
Opportunities – In this step, project manager consider the opportunity to develop their market.
Threats – competition and economy of the country contain as the threats.
What questions might you include in a SWOT analysis for risk classification?
There are many questions which are analysed by the project manager for the risk classification
such as -
Strengths
What is the require skills of the employees?
Is the budget allocated?
What are the appropriate equipments company require to finish the project ?
What is the project aim?
Weaknesses
What is the affect of the risk on the project?
How much cost required?
Is the project schedule appropriate?
Opportunities
Does your project rival have any weaknesses?
What are the industry threats?
What are the new opportunities about to come?
Threats
What is your competitor status?
Is your experienced staff member’s level their organisation?
How will outside factor affect your project?
Activity 2C
What is your organisation's process of identifying risk priorities?
There are some risk priorities that are identified by the Tesco which are given below -

Risk Probability – Most of the time project manager identify the risk priorities on the basis of
their possibilities. Tesco determine that there is 99 % possibility of risk so there is a need to
analyse the rank of likelihood of the risk which are relevant to the project.
Risk Impact – To process the risk situation is the most useful step to resolve the risk situation.
Usually risk gives negative impact on the project so it is important to address the priorities of the
risk. Tesco allocate the various people to determine the priority of the risk such as project
manager, project client, and team members.
Activity 2D
What is the purpose of a risk register?
Risk register is a tool that used by the project manager to track and control the risk so that project
manager can save the project form the worst impact of risk. Risk management is important
component to save the efficiency of the project.
For a project you have been a part of in the past, complete a risk register and risk management
plan.
Risk register is like a management tools that help to maintain the records of the project and also
identify the risk which is occur in project. Risk register include many information related to the
project such as source of the risk , nature of the risk, risk score, risk treatment options, risk
countermeasures. Risk Management Plan help in audit trails; format the information, risk
processes and manual risk system.
ACTIVITY 3
Activity 3A
What risk controls exist industry-wide for your organisation?
Risk control consider as an action that taken by the organisation to decline the possibility
of the risk likelihood and impact of specific risk. Through risk control, project manager Tesco
can define the outcome of the risk assessments. There are many things which are involved in the
risk control such as -
 Practices & code of conduct can be accepted by the industry
 Conduct the effective quality system
 Adopt the appropriate working methods

 Create effective organisational policies which are helpful to avoid the risk.
 Give four examples of risk control strategies.
The example of risk control strategies are given below -
Quality Testing Components - This component help to maintain the quality of the project so that
no risk can be occurring. Most of the organization is using this component to test the quality of
their projects so that they can avoid risk.
Conduct Market Research - This is also most appropriate risk control Strategy that is helpful to
control risk factor from the project. Project manager need to conduct market research is that they
can identify the useful resources which help to ignore the risk factors.
Budget Control - To prepare budget in an effective manner also comes under the Working
Strategy of the risk control. Project manager need to set budget on the basis of requirements of
the project.
Access Personal Protective Equipment - This risk control Strategy main used by the companies
because it usually help to protect and safe the personal information of the companies so that
project manager can maintain full confidentiality to protect the project data and equipments.
Activity 3B
Outline the following risk treatment options
Accept risk - This is very simple option for the risk treatment. Staff members of the project; fully
accept the risk in an appropriate way.
Mitigate risk- This risk treatment help to stop risk before it will come in reality situation. The
impact of risk is not considered in the project objectives.
Transfer or share risk -In this risk treatment, project manager passes the risk fully then decided
to share with the third party so that when risk situation will occur then third party will handle it.
Avoid risk- To avoid risk, project manager take specific action so that they can avoid the
situation and the likelihood of the risk situation will decrease.
Activity 3C
Activity Using the template below, fill out the treatment an identified risk in a past
project.

Risk ID:
Risk description:
Financial risk occurred when the
project manager decided to invest
in machinery and other
equipments.
Predicted impact:
Employees who participated in the
project activities suffered the most
because they did not get wages on
time.
Response recommendation:
Project manager need to invest on
the basis of budget that allocated
by the financial department.
Proposed actions:
Project manager need to invest on
installment so that all the
employees can get salary on time.
Resources required
Financial specialist, who can give
financial guidance.
Person(s) responsible:
All the members of the project can
do their task in best manner.
Response schedule:
As per the project need
Reporting/monitoring
requirements:
Financial department need to

control all the project activities.
Project manager
Name .................................
Date: ............................. Signature
.................
Authorisation
Name .................................
Date: ............................. Signature
.................
Activity 3D
Why might you need to update risk plans?
Risk plan is essential because it can help to overcome the entire risk situation which can give
the negative impact on the project activities so there is a requirement to upgrade the risk plan on
the next level. Update risk plan is prominent because it help to do some external changes that
project manager cannot easily control and they can only one option left that is ignore the risk so
that it is necessary to upgrade the risk plan.
There are some change which can be occur in any areas like laws, regulations, guidelines, risk
identification and management practices.
What review techniques do you use in your organisation to update risk plans?
To upgrade a risk plan in Tesco, project manager mainly use many techniques which can help to
control the risk factors. Techniques to update risk plan are given below -
Review techniques - when project manager review risk then manger can review the specific risk
register on daily basis like weekly and monthly. Project manager make sure that project process
is implemented successful on the basis of plan.
Risk planning - through appropriate risk plan, project manager can resolve the entire risk
situation.