identify risk

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Business Finance

Description

After identifying risks, ranking is critical to resource allocation. This allows for the identification of critical risks. Risk assessment is just as important, if not more important, to risk identification. In addition to qualitative risk assessment such as SWOT, Delphi Technique, and brainstorming, quantitative risk assessment such as EMV and Pareto Analysis can also be conducted.

  • If you are conducting a risk assessment for a project, how much value can you put on EMV and the Pareto Analysis and why?
  • What are the merits and demerits of qualitative and quantitative risk management techniques?

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Explanation & Answer

Attached.

Running head: IDENTIFY RISKS

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Identify Risks
Name
Grade Course
Tutor’s Name
Date

IDENTIFY RISKS

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EMV and Pareto Analysis
Conducting a risk management analysis on a project requires effective risk identification
tools or techniques to ensure that project team knows how to handle such unexpected
occurrences. The expected monetary value (EMV) and Pareto Analysis are risk management
techniques that help quantify and compare risks in many components of a project. I would place
much value on both expected monetary value (EMV) and Pareto Analysis because of the role
that they play in risk assessment in project management. Firstly, the EMV technique allows the
project team to quantify risks which enables the project manager to estimate the contingency
reserve and calculate the estimated outcomes when the future consists of scenarios that can or
cannot happen. Imperatively, EMV he...

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