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Risk Analysis Case Study

Student’s Name

Institution’s Affiliation
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Reflection

From this week’s readings, I have learned that risk management helps me identify the

possible weaknesses, strengths, opportunities, and dangers that can affect my project. It is

also important that I plan for the risks that might affect my project right before they happen

so that it may be easy to manage the risks if they materialize. Risk management is a big

contributor to the success of a project since a project’s success is dependent on factors such

as planning, preparation, outcomes, and assessment, all of which contribute to the

accomplishment of strategic goals.

Risk Identification

For a successful family vacation, it's important to handle it like a project, with each member

of the family acting as a stakeholder. A trip to Myrtle Beach, SC, for a typical family that

involves a 1000-mile journey, requires careful consideration of several things. Identifying the

dangers that come along with having a great time with the family may be accomplished by

determining the components. To ensure that everyone in the family has a safe and pleasurable

holiday, consider the following dangers: the first risk is a schedule risk. It is crucial to

organize the trip properly to ensure all activities go well (Pantoji, 2021). Other risks include

but are not limited to risks concerning the budget of the trip, the risk of getting medical

emergencies, risks involving their safety, the risk of having a medical emergency, and the

risks of having bad weather. For successful risk analysis, we must plan for all the above risks.

Risk Matrix Construction

In order to construct a risk matrix, it is necessary to characterize the risks in terms of two

essential characteristics, namely the likelihood that a specific risk will really materialize and

the potential negative effects that it will have on the trip taken by the family. The scale ranges
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from 1 to 5, and the numbers are listed in decreasing order (Shishodia, 2018). The following

is a scale from 1 to 10 indicating the likelihood of each danger occurring:

Categories Rates Description

Probable 5 There is a high chance of the risk occurring.

Likely 4 The risk can occur depending on the situation.

Possible 3 There are chances of the risk occurring.

Unlikely 2 There is a low chance of the occurrence of the risk.

Remote 1 There are remote chances for the risk to occur.

*5 is the highest rate for the probability of the risk occurring.

The following is the risk impact severity rating:

Categories Rates Description

Extreme 5 The impact can be substantial.

High 4 The impact can lead to major complexities.

Medium 3 There might be a moderate impact of the risk.

Low 2 There might be some impact of the risk.

Negligible 1 No significant impact of the risk.

*5 is the greatest possible risk impact rating.

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It is necessary to compute the risk score in order to plot the recognized hazards in the risk

matrix, which may be obtained using the formula below:

Risk score= probability x impact

The following is a breakdown of the risk ratings for each of the threats:

Risk of sch edule=2 x 2=4.

Risk of budget=2 x 3=6.

Risk of medical emerg e ncies=2 x 4=8

Risk of t h eft=2 x 4=8

Risk of safety=3 x 5=15

Risk of weat h er=3 x 3=9

There are four methods to classify the risk ratings given to the identified dangers for

the family vacation:

1. A low-risk situation that is deemed acceptable.

2. Moderate risk that might be acceptable or not.

3. A high risk that will not be tolerated.

4. An extreme risk that is deemed unacceptable

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They are classified as follows:

Low risk (1 - 5) Moderate risk (6 - 10) High risk (11 - 16) Extreme risk (> 16)

Risk of schedule Risk of medical emergencies Risk of Safety

Risk of budget

Risk of weather

Risk of theft

The risk matrix below depicts the potential risks identified for the family beach trip:

15 risk of
Extreme 5 5 10 20 25
safety
8 Risk of
S
High 4 4 medical 12 16 20
E emergencies

V 6 Risk of 9 Risk of
Medium 3 3 12 15
E budget weather
4 Risk of 8 Risk of
R
Low 2 2 schedule 6 theft 10
I

T Negligible 1 1 2 3 4 5
y

Remote 1 Unlikely 2 Possible 3 Likely 4 Probable 5

Probability
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References

Pantoji, G. S., Bhat, M. H., Gwalani, P. N., & Bhulokam, A. M. (2021, March). Development

of a risk management plan for RVSAT-1, a student-based CubeSat program. In 2021

IEEE Aerospace Conference (50100) (pp. 1-7). IEEE.

Shishodia, A., Dixit, V., & Verma, P. (2018). Project risk analysis based on project

characteristics. Benchmarking: An International Journal.