Risk identification and its probability
Risk management will significantly lead to the achievement of the project objectives without failure. Risk can be classified into five groups are the following: Financial risk: related to the risk of financial revealing by the company itself when carrying out the project. This kind of risk involved to project funding issue, the problem on the company’ loan, company have changed the priority for another project. It can be impacted by the overall project to be held unlimitedly or project delay non-expectation. Technical risk: this is a risk that occurs when there are errors or misunderstanding and misuse of technology in the project. The risk breakdown of the CEMS project for ABC is illustrated below. Table 1. 1 Project Risk Breakdown Structure Qualitative technique for risk analysis This model is used significantly to quantify and group the risks that are associated with a specific hazard or danger.
This risk assessment techniques relates some of the consequences of the risks and their probability of happening and affecting the organization. It uses a relative scale to measure the risk occurrence and groups them into high, medium and low according to their intensity or probability of occurrence. 2 C. 1 D. 1 Low A. 3 C. 2 A. Moderate (0. 5) Project cost is overran by <= 4% Collision to critical path(↓) Reduce reliability Some reduction in system performance. Significant (0. 7) Project cost is overran by < 6% Delay 20 days, Required adjustment of critical path Remarkable reduction of reliability Remarkable reduction of project performance Major (0. 9) Project cost is overran by > 12% will not catch schedule Project goals could not be done with current plan Performance of objective could not be done. Moreover, they do not pose threats to the project or the dangers are very minimal and cannot cause a lot of damage to the project.
The risks can be considered by the project team to be accepted and not to be focused on because of the less impact they will have. Accepting the risk therefore only apply to risks with very minimal consequences. Additionally, acceptance of risk implies operating with the existence of the risk and doing nothing totally with it. Few risks, therefore, should be considered acceptable in order not to experience more development threats. Moreover, another important thing that should be considered in transferring risk is insurance which plays the role of risk management and mitigation on behalf of the project. For the CEMS project, there have been many measures taken to mitigate and approach the risk factors that might affect the project. The project will significantly depend on factors such as project schedule, budget, and another action plan to reduce the consequences and the probability of risk occurrence.
There are some activities which possess high risks that will be assessed, listed and planned for properly with strategies to minimize the risks. The risks activities will also be monitored accurately and ensured to have very minimal or no impact on the project. Nguyen F. Carefully check contract term and condition for penalty for late finish of contract 2. Frequent check for goods delivery from suppliers 3. Weekly meeting with installation team to speed up installation. Crushing activities if needed. Report to company management team to be aware and working with customer. Mr. Toan B. 3, B. 1, C. All the stakeholders must also be made aware of the project termination and even understand the reasons why the project has to be terminated. There are four approaches of ending plans including the following: Termination by integration: This is considered after successful completion of the project.
The project is terminated through inclusion in the organization or the client’s operations. It is the commonly used method of project termination and also complicated. In integration, the project resources are spread in the entire organization or the specific sectors of concern. Creating recourse- it consists in loading the table with resources which can be used for completing the project. In the realization of a shortage of funds, the project manager can consider creation or allocation of more resources which will be used for completing the project successfully. Determine activities late finish dates- the project managers should be able to regulate the events which are allocated in the finishing dates. Identify resource over- allocations- the project managers should be able to identify some of the useful resources which will be utilized in the project up to its completion.
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