Unit-5 Risk Analysis and Assessment

Program Semester Subject Code Subject Name Unit number Unit Title Lecture Number Lecture Title

: MBA : IV : PM0016 : Project Risk Management :5 : Risk Analysis and Assessment :5 : Risk Analysis and Assessment

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Unit-5 Risk Analysis and Assessment

Risk Analysis and Assessment

Objectives :
To define risk analysis and its types To explain the steps involved in performing risk analysis. To explain the risk assessment cycle To differentiate between the types of risks To determine the key ideas to identify the schedule risks and resource risks.

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Unit-5 Risk Analysis and Assessment

Lecture Outline
Introduction Steps in Risk Analysis Risk Assessment Cycle Difference between Quantitative and Qualitative Method of risk Analysis

Key Ideas for Identifying Schedule and Resource

risks Summary

Check Your Learning

Activity
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Unit-5 Risk Analysis and Assessment

Introduction

Risk management is defined as a process that helps to meet the objectives of the business and to protect the resources of the organisation in a cost effective way.

It helps to recognise an ideal security system for the organisation or business environment.

It identifies various threats and their levels. Risk analysis and risk assessment process enables an organisation to make clear decisions.
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Unit-5 Risk Analysis and Assessment

Steps in Risk Analysis

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Unit-5 Risk Analysis and Assessment

Risk Assessment Cycle

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Unit-5 Risk Analysis and Assessment

Difference between Quantitative and Qualitative Methods

Quantitative Scientific studies and measurements Comparison of results with limit values Difficult to reach consensus Necessary to quantify the threat frequency Qualitative Semi-scientific or non-scientific Judgement decisions Easier to reach consensus Not necessary to quantify the threat frequency

No biasing decisions

Professional and personal experience biases.

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Unit-5 Risk Analysis and Assessment

Key Ideas for Identifying Schedule Risks

Estimated schedule risk must be investigated to know the sources of estimates and identify the high-risk dependencies. It impacts the

project duration.
The five categories that affects the project durations are: Project Dependencies

Parts Delays
Estimation errors Decision Delay Hardware Delay

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Unit-5 Risk Analysis and Assessment

Key Ideas for Identifying Resource Risks

The resource risks effects the project development. Resource risks can be identified by: Recognising essential skills to complete the project. Determining the activities where there are insufficient resources and undependable resource estimates.

Documenting all outsourcing risks.

Determining the expected project costs.

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Unit-5 Risk Analysis and Assessment

Summary

Risk management helps to meet the business objectives and risk analysis helps to recognise

an ideal security system for the organisation.

In this unit we have discussed the steps of risk analysis and the stages of risk assessment cycle. We have also discussed about the qualitative and quantitative methods of risk analysis.

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Unit-5 Risk Analysis and Assessment

Check Your Learning

1.

Define Risk Management. objectives of the business and to protect the resources of the organisation in a cost effective way.

Ans:Risk management is defined as a process that helps to meet the

2. List any one difference between Qualitative and Quantitative methods

of risk analysis. Ans: The difference is: Qualitative method: Easier to reach consensus

Quantitative method: Difficult to reach consensus.

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Unit-5 Risk Analysis and Assessment

Activity

Assume that you are a Project manager of a networking team and the team consists of eight members. The project undertaken involves providing network support for eight branches of an organisation across

the world.
Identify the potential risks for the planned project and complete a qualitative risk analysis for each specific risk you have identified

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