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Activity 7 EP
Student's Name
Institutional Affiliation
Course
Instructor
Date
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Activity 7
When working in a dynamic environment, a project must deal with several uncertainties.
Risks about financing, personnel, and customer requirements are just a few of the frequent
concerns (Pinto, 2016). Some of these dangers may be managed, while others are beyond our
control. As a result, the success or failure of a project is determined by how well it is risk
management. Risk management is the science and skill of identifying, analyzing, and responding
to risk concerns throughout the life of a project. Its goal is to meet the project's objectives.
Rating of the consequences of the identified risk
The project's critical risk variables will have a more significant influence on the project.
If one of the project's essential elements has the most considerable probability, it should handle
that factor with extreme caution. Similarly, determining the impact of a factor on a project by
examining its relevance and likelihood of recurrence may be done (Pinto, 2016). The
consequences will be rated as follows from the list of risk variables provided: key team members
pulled off the project, project financing reduction, poor performances, project scope changes, the
chance of an economic downturn.
Low
Medium
High
4
1
3
2
5
Analyze the risk factors in the risk analysis matrix
The project team would not address the different hazards in a project in the same way. It
helps in the prioritization of all hazards, and each risk element will be dealt with separately. It
will be considering the possibility and implications of the project in this regard. The first factor
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that is essential for team members is taking off the project, which has a high probability of
occurring and will have an immediate impact on productivity (higher consequences) (Pinto,
2016).
There is a minimal likelihood of an economic slump; however, it will have a moderate
influence on the output. Financial considerations are uncontrolled by the project team since they
are external. Project budget cuts with an average likelihood of occurring will have a more
significant impact on the project (Pinto, 2016).
This is due to the fact that the project's performance would be harmed as a result of the
lack of funds. Project scope modifications that are more likely to occur will have a modest
influence on project performance (Pinto, 2016). Even though there is a slight probability of bad
performance, it will significantly impact the project's overall performance.
It makes it simple for a team member to comprehend the project's effects by glancing at
the risk analysis matrix. A project team is best ready to detect the types of risks with which the
project is exposed, and the strategic importance of each of those risks in terms of their potential
influence on project performance, after working through and completing a thorough matrix.
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References
Pinto, J. (2016). Project Management achieving competitive advantage (4th ed.). Pearson
Education.

Unformatted Attachment Preview

1 Activity 7 EP Student's Name Institutional Affiliation Course Instructor Date 2 Activity 7 When working in a dynamic environment, a project must deal with several uncertainties. Risks about financing, personnel, and customer requirements are just a few of the frequent concerns (Pinto, 2016). Some of these dangers may be managed, while others are beyond our control. As a result, the success or failure of a project is determined by how well it is risk management. Risk management is the science and skill of identifying, analyzing, and responding to risk concerns throughout the life of a project. Its goal is to meet the project's objectives. Rating of the consequences of the identified risk The project's critical risk variables will have a more significant influence on the project. If one of the project's essential elements has the most considerable probability, it should handle that factor with extreme caution. Similarly, determining the impact of a factor on a project by examining its relevance and likelihood of recurrence may be done (Pinto, 2016). The consequences will be rated as follows from the list of risk variables provided: key team members pulled off the project, project financing reduction, poor performances, project scope changes, the chance of an economic downturn. Low Medium High 4 1 3 2 5 Analyze the risk factors in the risk analysis matrix The project team would not address the different hazards in a project in the same way. It helps in the prioritization of all hazards, and each risk element will be dealt with separately. It will be considering the possibility and implications of the project in this regard. The first factor 3 that is essential for team members is taking off the project, which has a high probability of occurring and will have an immediate impact on productivity (higher consequences) (Pinto, 2016). There is a minimal likelihood of an economic slump; however, it will have a moderate influence on the output. Financial considerations are uncontrolled by the project team since they are external. Project budget cuts with an average likelihood of occurring will have a more significant impact on the project (Pinto, 2016). This is due to the fact that the project's performance would be harmed as a result of the lack of funds. Project scope modifications that are more likely to occur will have a modest influence on project performance (Pinto, 2016). Even though there is a slight probability of bad performance, it will significantly impact the project's overall performance. It makes it simple for a team member to comprehend the project's effects by glancing at the risk analysis matrix. A project team is best ready to detect the types of risks with which the project is exposed, and the strategic importance of each of those risks in terms of their potential influence on project performance, after working through and completing a thorough matrix. 4 References Pinto, J. (2016). Project Management achieving competitive advantage (4th ed.). Pearson Education. Name: Description: ...
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