PJM 480 CSU Global Module 6 Project Risk Management Essay
PJM480 MOD6 Critical Thinking I have attached the assignment in a Word Dox. as it may be easier to read. RequiredChapter 11 in A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Part 1Hoimlin, R. M. (2015). Zombie risks. PM Network, 29(7), 25.Malooley, J. (2015). If only I’d known. PM Network, 29(1), 48-53.Shahani, G., & Rentschler, C. (2015). Better risk-management methods ensure project success. Hydrocarbon Processing, 94(7), 69-72. RecommendedBowers, J., & Khorakian, A. (2014). Integrating risk management in the innovation project. European Journal of Innovation Management, 17(1), 25-40.Option #1: Project Risk Factor
Project risk can be simply defined as any possible event that can
negatively affect the viability of a project and can be computed using
the simple relation:Project Risk = Probability of event * Consequences of eventLet’s investigate the quantitative risk identified for a company, last year.
Probability of Failure Category
Probability of Failure
Consequences of Failure Category
Process Maturity
30%
Performance = 55%
Technical Complexity
25%
Schedule = 75%
Vendor Dependency
30%
Cost = $55
Workforce Availability
10%
Reliability = 20%
Use the table above to answer the following questions:Please calculate the total risk factor for this project. Would you assess this level of risk as low, moderate, or high? Why?(Hint: Total Risk Factor = (Pf + Cf) - (Pf*Cf) Where P = Average
probability of failure and C = Average Consequences of Failure. A common
rule of thumb assigns any project with a Risk Factor of below 0.30 as
low risk, with a Risk Factor of between 0.30 and 0.70 as medium risk,
and Risk Factor over 0.7 as high risk).What are all the risk mitigation strategies available to this
company (in the example above)? What specific mitigation options would
you recommend to the corporation?To reduce the total risk factor by one level (i.e., High to Medium
or Medium to Low) what would be your focus among the four probabilities
of failure and four consequences of failure listed?If you were to prioritize your efforts, which risk factors would you address first? Why?Explain the meaning of the following sentence: Reduction of risk factors is not cheap.Your responses should be integrated in a well-written paper that meets the following requirements:Be 2-3 pages in length plus graphical elements, placing these graphical elements in an appendix,Be formatted according to the CSU-Global Guide to APA and Writing Requirements (Links to an external site.), andInclude two scholarly sources from the CSU-Global Library (Links to an external site.).Option #2: Project Risk Management Review
Using past course texts, current suggested readings, and other scholarly resources, write a review of Risk Management.Define the Risk Management process. Be sure to cover each phase, inputs, tools and techniques, and outputs.Be sure to include:Phases,Types of analysis,Categorization and prioritizations, andMitigation strategies.Lastly, conclude with a description of the value of Risk Management to the organization.Your paper should meet the following requirements:Be 3 pages (minimum) in length,Be formatted according to the CSU-Global Guide to APA and Writing Requirements (Links to an external site.), andInclude two scholarly sources from the CSU-Global Library (Links to an external site.).