Ans1: Today in some associations, the analysis of risk management becomes a subset of management project that is virtually non-existent. The management who are working upon any project usually focused on cost, schedule and delivery of project on time and on budget too.
The Project Management Body of Knowledge which is (PMBOK) contains seven principles and they are:
*Risk for the management plan
*Qualitative risk analysis
*Quantitative risk analysis
*Implement the responses for risk
Qualitative Risk Analysis: The qualitative risk analysis involves risk prioritization; the components of risk are of two types- occurrence of probability of risk and impact. Each qualitative risk is analyzed and then assigned to underlying variables, and by underlying variables all over the ranking of qualitative risk will be found.
Inputs for qualitative risk analysis are:
*Planning for project management
*Documentation of project
The techniques or methods which are used in Qualitative Risk Analysis are:
*Gathering of data and records
*Judgment of experts
Outcomes for qualitative risk analysis are:
*Reports for risk
*Registration of risk
Quantitative Risk Analysis: The quantitative risk analysis is the explication of finding the highest risk priorities in which numerical rating is assigned to evolve the analysis of project probability. Its main objective is to identifying the overall risk in project. It also determines the cost and size schedule contingencies of project.
Inputs for quantitative risk analysis:
*Baseline of cost
*Plan for risk management
Techniques for quantitative risk analysis:
*Analysis of data
*Gathering of data
Outputs of quantitative risk analysis:
*Updates for project documents
*Risk for project reports.
Ans2: Another term which we used for risk matrix is Impact matrix and probability matrix. This tool assists while evaluating the risk and can consider the possibility of potential risk in project. The matrix of risk contains a grid with probability of occurrences impact on project management. Now the possibility can be visualized in terms of likelihood, percentage as well.
The risk likelihood is broken down into four major components and they are:
The Possibility for risk matrices are documented in percentages
The risk matrices have consequently impact on four dimensions:
The grid is used in risk matrix to analyze the number of risks which is obtained through multiplying the probability with impact or severity. The outcome which will be produced helps us in understanding that what needs should be get done while minimizing the risk matrix on any project.
Advantages for risk assessment matrices:
*The risk matrices help in prioritizing the level of severity.
*Risk matrices help in neutralizing the possible outcomes.
*It analyzes the potential risk with minimum efforts.
*It visualizes the overall risk of project to team.
Using matrices of risk for risk management minimizes the magnitude of its impacts. It quantifies the threats and takes initiatives for decreasing the chaos which may happen in case of ambiguity. The risk matrices give insights regarding for upcoming approaches which needs to be adopted. The management tool for risk helps us to identify assess of likelihood and possibilities of risk for the projects.
Ans3: Risk mitigation is the process of evaluating actions and options for enhancing the opportunities and minimizes the threat for project objectives. The risk mitigation is the process of performing risk mitigation actions. It monitors the involvement for tracking risk identification, and evaluates risks for project management.
Risk mitigation handles the option like:
All these options require a developing plan which is implemented for effectiveness. Risk mitigation first identifies the option and then evaluates to set a risk at admissible levels while giving program objectives or constraints.