DEPARTMENT OF BUSINESS

MANAGEMENT
HEMVATI NANDAN BAHUGUNA GARHWAL
UNIVERSITY (A CENTRAL UNIVERSITY)

MASTER OF BUSINESS MANAGEMENT

SEMESTER- 3
ASSIGNMENT no. 2
SUB: PROJECT MANAGEMENT

SUBMITTED TO:Dr. E.Binodini mam SUBMITTED BY:Riya Vats

 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to

my subject teacher Dr.E.Binodini mam who gave me the
opportunity to do this wonderful assignment. Who also
help me in completing this assignment by their valuable
suggestions and I came to learn about so many new
things.
Secondly i would like to thanks my comrades who help
me a lot in finalizing this assignment within the limited
time frame.

THANK YOU

Analysis of Risk in Project Management

Risk management is one of the core project knowledge

areas, an essential and ongoing process which can be
described as the methodical process of identification,
analysis and response to project risks involving several
major phases which are similar to all projects.

Regardless of the methodology or approach, risk

management processes generally include risk
identification, analysis, risk response planning, risk
monitoring and control. This article focuses on one of
these major risk management processes, exploring what
the risk analysis process in project management is by
exploring useful tools and techniques.

The Risk Analysis Process in Project Management

The risk analysis process is what follows the Identification
of Risks procedure and is distinguished by two clear
categories: Qualitative and Quantitative Risk Analysis.

Qualitative Risk Analysis is the process during which one

prioritizes risks for further action by assessing their
probability of impacting project development.

Risk probability and impact assessment: During this

stage every particular risk that might occur is
investigated and analyzed in relation to its plausible
effects, both positive opportunities and negative threats,
on the project’s objectives (e.g. cost, schedule, quality,
performance). Each risk is defined in levels my means of
an interview, an investigation or a meeting with all
related stakeholders to document the identified results.

Impact risk rating matrix: The documented results of risk

probability can be described in qualitative terms, such as
very high, high, neutral, low and very low. The risk rating
is developed using a matrix which represents risk scales
for each of the risks. The matrix documents the risk
probability scale between no possibility (0.0 rate) and
certainty (1.0 rate), as well as the risk’s impact scale,
reflecting the severity of its influence on the project’s
objective. This matrix helps to improve the quality of the
data and make the process easier to replicate several
times during the project.

Risk categorization: In this step, risks are grouped by

common causes to determine the most exposed areas of
the project and to help develop an effective risk response
plan.

Risk urgency assessment: In some cases, the risk of

urgency can be combined with the risk ranking, a method
used to evaluate the degree to which data about risks is
useful for risk management, generating a final sensitivity
rating.
Expert judgement: On many occasions it can be helpful
to take advice from experts, such as individuals with
recent experience on similar project cases, through
interviews or risk facilitation workshops.

Quantitative Risk Analysis Process aims to numerically

analyze the possibility of every risk and its effect
on project objectives, as well as the degree of overall
project risk. This procedure uses several techniques and
methods such as data collection and representational
techniques to determine the probability of
achieving project objectives, to quantify the exposure to
risks and develop a size and cost assessment schedule.

Interviewing stakeholders: To this end, one might carry

out interviews to gather information and form optimistic
(low rating) and pessimistic (high rating) risk scenarios.

Sensitivity analysis: Helps to define which risks have the

most potential effect on the project. Generally, this
analysis investigates the extent to which the uncertainty
of each of the project’s elements influences the
examination of the objective when other unclear
elements are held at their baseline values and can be
represented via a tornado diagram.
Expected monetary values analysis (EMV): Is a statistical
method that measures the average outcome when the
future includes scenarios that may or may not occur
(such as positive values-opportunities, or negative
values-risks). These are usually depicted by a Decision
Tree Analysis, which is a diagram describing a decision
under consideration and the implications of choosing
from the available alternatives. This diagram, includes
probabilities of risks and the subsequent cost or gain of
each logical path.

Modeling and simulation: Is a tool that uses a model

that converts the uncertainties into their potential
impact on project objectives, generalized to the level of
the total project. To help with this, one might use the
Monte Carlo technique.

Cost risk analysis: For cost estimation analysis traditional

project WBS can be used, otherwise, cost estimates can
be used as input values, chosen for each iteration
incidentally, according to the values probability
distribution, in order to define the total cost.

Schedule risk analysis: The Precedence Diagramming

Method (PDM) can be used for schedule risk analysis. It is
a method of constructing a project network diagram that
represents the activities and their connection with
arrows to show dependencies. One can use this activity-
on-node diagram to check whether the project objective
will be completed by a certain date and within the cost
estimation.

Expert judgment: Obtaining advice from experts to

identify potential cost and schedule effects, evaluate
possibilities, interpret data and identify weaknesses and
strengths can be of great value.
Risks constitute a common reality on all projects. One of
the biggest challenges a project manager has to face is to
not become overwhelmed by the number or magnitude
of possible identified risks. Instead, a good project
manager should have the ability to focus on the
important elements that could threaten the project’s
smooth operation and subsequently develop a risk
response plan. The risk analysis process in project
management is one of the most important procedures in
project management and it aims to minimize the
liabilities of the project and ensure its path to successful
completion.
Rules To Manage The Risk
1- Identify The Early Risk Associated With Projects– Risk
management is intended to reduce the chances and
frequency of risk occurrence. Essentially organizing well-
planned risk management structured is nothing but a
quality problem-solving under which the foremost
priority of a project manager has to identify the risks and
reviewing all the resourced associated with risk
exposure. On that note, make a clear list of who is
responsible for risk.

2- Communicate Risks– Pay close attention to the risk

and the solicit input into the meeting and discuss it with
team members. Focuses entail the risk exposure
frequency with the project sponsor or major
stakeholders and decide on top risks.

3- Consider Opportunities And Thread– According

to online assignment help experts, as risk has a negative
connotation for being harmful to the projects, there can
be some opportunities and positive risk might have
associated with it is neglected somewhere, henceforth
make sure you are dealing with the opportunities with a
high pay off that may not require bigger investment and
accelerate the growth of the project.

4- Risk Prioritizing– Some risk has a higher probability to

impact the project progress while some may have lesser.
To do so, evaluates the tendency of risks and develop
contingencies. This process of prioritization helps the
project management team to manage that risk has both
a high probability of occurrence and a greater impact on
project growth.

5- Assessing Risk– Identify risk occurrence at what level

to determine its causes to have happened. The
information gather will provide insights among a range of
risk occurrence and provide time to optimize it.

6- Developing A Contingency Plan– To prevent the risk

or reduce its likelihood chances of occurrence, develop a
contingency plan and considered it as a task. Make sure
these actions should be taken promptly.

7- Tracking Risk– Last but not the least, as defined

by assignment writer, record the risk and effective
Responses to track the if the risk happens derails the
project or not. The daily efforts must be made by the
project manager focusing on the current situation of risk.
 Ris
k Management Process

Why Is Risk Management Important In Project

Management?
The timeframe in which risk occur will have an impact
should be identified as soon as possible. Also, it is
important to cost, schedule, scope, and quality in detail
as per the nature of risk. Hence it can be said, in all the
way, the exposure of risk to a project critically impact the
project and might be an agreement with the
stakeholders. In this case, a risk management schedule
the ground rule to monitor risk triggers also one that can
define the best measurements. To combat the overall
impact of the risk management process on the project
can be defined in given points-

● Risk management contributes to the success of

projects  by determining the external and internal risks
● In order to ensure the project run smoothly, the
project manager can communicate their plans with
stakeholders
● This helps project managers to maximize the
outcomes and reducing the chances of falling of
projects.
● A risk management plan helps you to become
proactive and developing actions to reduces the
likelihoods
As suggested by essay typer, this will help in evaluating
the project success at one go. In case you want
assistance to develop a risk management plan for your
assignments, then get in touch with SourceEssay online
assignment writers team as soon as possible.

Conclusion
Through this blog, we have defined what are risk
management and its importance in project
management activities. It has been discussed in this blog,
risk management is termed as an action plan consisting
of various step and ensuring removal of risk via
techniques and tools. This defines a risk management
plan forming pathways for successful implementation of
projects and enables the project manager to review the
project and create effective responses. Further, it has
been discussed companies under or more than five per
cent CAGR have experienced higher growth and felt risk
management is important criteria to achieve

set goals. We have also discussed risk management

process under which the first step is the identification of
risk, second is risk evaluation, third is risk handling and
fourth is controlling risk. Addition to all, we have finally
elaborated why risk management is important for the
project  in terms of providing key features of the risk
management process.