Detailed Report on Risk Management Methodologies for Project Success

This report provides an overview of risk management within project development, focusing on methodologies such as change management, risk avoidance, and risk transference. It addresses the importance of understanding constraints and risks, particularly security and technological risks, for the success of taxi booking applications. The report differentiates between risk avoidance and acceptance, highlighting scenarios where each is appropriate, such as using risk avoidance when a project section is too difficult and transferring risk by hiring specialists to handle legal compliance. The document emphasizes proactive risk management to minimize vulnerabilities and ensure project success. Desklib offers this document and many others to aid students in their studies.

Running head: RISK MANAGEMENT
Risk management
[Name of the Student]
[Name of the University]
[Author note]

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Comment for Question 1:
 The taxi booking application would be working ad desired if all the constraints and
risks are understood in a proper way. Security risk and technological risks are the two
major risks and if this risks are dealt with in a proper way then the application is
surely like to succeed.
 The scope of the project has also been created in proper way so as to understand the
basic objective of the project.
Question 3
A. Which risk treatment method is this? Explain your answer.
The risk treatment method that is used for this is the change management. Change
management generally refers to the systematic approach of dealing with the various type of
transformation taking place in the goal, process or technologies in the project, change
management is implemented so as to have an effective change of the requirements and also
for controlling the changes and helping the people so as o adopt the changes. The change
management strategy would be including a structures procedure for requesting the changes
along with a mechanism so as to respond the changes and for taking follow-ups.
B. Which risk treatment method should be used when a section of the project is too
difficult for the company to perform? Explain your answer.
The risk treatment method that should be used for this particular section is the risk
avoidance. This method generally involves the development of an alternative strategy which
is having the highest probability of success. however, this type of method is associated with
high cost. As the project is too difficult it is better to use to the risk avoidance strategy. This

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method is selected as this is associate with making attempts so as to minimize the
vulnerabilities that are capable posing high amount of threats.
C. You are managing a project which uses subroutines and libraries from a number of
different sources. You are concerned that the project might accidentally contravene the
law. So you ask the HR department to employ someone with specialist knowledge in the
area. Is this an example of “Transference”? Explain your answer.
This hiring of the specialist so as to tackle with the contravention with the law is an
example of transference. The main reason lying behind the acceptance of this as transference
is that the risk of facing the laws would entirely be tackled by the specialist who is to be hired
and not by any other participants of the project. So the risk is entirely transferred to the new
personnel making that person solely responsible for any kind of regulatory or legal risks that
are likely to occur.
D. What is the difference between “Avoidance” and “Acceptance”?
Risk acceptance or risk retention generally refers to the process of accepting the risks
that have been identified and are not taking any other actions which are needed in order to
reduce the risks. This is done as the impacts of the risks can be accepted along with the
possible consequences. This is one of the risk management strategy that is adopted in order to
deal with the risks against which no actions no actions can be taken as it is acceptable. This
type of mitigation technique is imposed if the risk is small is size and is not having the
capability of posing a catastrophic impact upon the project.
Risk avoidance is the process of eliminating any kind of hazards, activities or
exposure which are likely to have a negative impact upon the assets of the organization. This
method is associated with seeking for ways of avoiding any type of events which are

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compromising in nature. Elimination of risk is rarely possible in this type of technique as this
is the strategy which is designed for the purpose of deflecting as many threats as possible for
the purpose of avoiding any type of costly or disruptive consequences that the damaging
events would be having.
Comment for Question 3:
 Change management if planned properly would surely be helping in avoidance of any
kind of risk arising due to changes in the project. Besides this there are also other risk
mitigation techniques along with the avoidance like acceptance of the risk, mitigating
the risk and transferring the risks which can be applied so as to tackle the different
kind of risks.
 The difference between the avoidance and acceptance of the risks have been
highlighted properly which helps in understanding the basic differences between this
two risk management methodologies.

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Bibliography:
Bessis, J., 2015. Risk management in banking. John Wiley & Sons.
Glendon, A.I. and Clarke, S., 2015. Human safety and risk management: A psychological
perspective. Crc Press.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative Risk Management: Concepts,
Techniques and Tools-revised edition. Princeton university press.