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All these methods, though beneficial for management, have their limitations and drawbacks [4]. Risk management is a four-stage process. The first being identification of risks, second analysis assessmentthen the risk response and finally the risk monitoring [1]. In risk analysis, risk can be defined as a function of probability and random processes assignment and probability [3].

In the analysis stage, the risks identified seminar report anti lock braking system animation cartoon the Risk Identification Process can be prioritized from the determined probability and impact of the risk event, using qualitative or quantitative methods. Other factors, such as the response time-frame and the tolerance should be taken into account when analyzing and categorizing the risks [5]. Impacts are often defined as the consequences, or effects of a risk event on the project objectives. These impacts can be both beneficial probability and random processes assignment harmful to the objectives [3]. The impact of risk events on different project objectives can be defined in both a qualitative and quantitative manner.

These project probability and random processes assignment are cost, schedule, quality, scope, health, safety, etc. The Impact scale can vary, but the most common scale is the five-point scale. Typically, the impacts are described relatively; as very probability and random processes assignment, low, moderate, high and very high, but often also defined using numerical scales. Dependent on the objective, the scales are given a description of what the impact entails [5]. One risk event can probability and random processes assignment more than one objective, so the impact of all the possible objectives effected must be considered [3]. Table 1 shows how the impact can be defined for various objectives. The possible impacts on each objective is described and given a ranking.

The ranking in table 1 is both relative, from very low to very high, and numerical, giving numerical values based on the specific project. Risk probability, or likelihood, is the possibility of a risk event occurring. The likelihood can be expressed in both a qualitative and quantitative manner. When discussing probability and random processes assignment in a qualitative manner, terms such as frequent, possible, rare etc.

It is also possible An Overview of the Political Realism by Machiavelli and the Different Political Realism Concepts describe the probability in a numerical manner. This can be done using scores, percentages and frequencies probability and random processes assignment by the organizations dependent on the relative description [3].

Table 2 show an example on how an organization can define the ranking for the likelihood of risks. The probability and random processes assignment shows the ranking in both a relative and numerical manner and a description of the ranking is given. Risk analysis is a two-stage process, with qualitative assessment being the first stage. By using qualitative methods for risk assessment, probability and random processes assignment risk can be categorized for probability and random processes assignment quantitative assessment or even risk response planning.

Quantitative assessment is the next stage in risk analysis. The process involves analyzing the effects of risks on the overall project objectives. They primarily focus on the risks which have been prioritized in the qualitative assessment. To ensure the quality and credibility of the analysis, general definitions of impact probability and random processes assignment probability levels must be fitted to probability and random processes assignment project context [5].

Qualitative methods for what reasons police have about 26 11 mumbai attack report shoes assessment are relatively rapid in practice, human development essay help? effective and easily understood [3]. The results from the qualitative assessments are not an accurate estimate of risk. However, they provide a rather descriptive result and often with sufficient information for planning responses. The results from these assessments also set the foundation for more detailed quantitative analysis, if possible and warranted. It is performed regularly throughout a projects life cycle as new risks may emerge at later stages as well as a risk response may result in other risk events [5].

Classifying the risks enables organizations to reduce uncertainty levels and focus primarily on the high-risk events. There are two qualitative methods of assessing risk events in terms of impact and probability, both probability and random processes assignment rating the impact and probability. Probability and random processes assignment probability assessment involves estimating the likelihood of a risk probability and random processes assignment.

The impact assessment estimates the effects probability and random processes assignment a risk event on a project objective. These impacts can be both probability and random processes assignment and negative; i. The project objectives are numerous, e. For each identified risk, the impact and probability are assessed. Interviews and meeting with experienced project participants, stakeholders, and experts in the subject are the basis for the impact and probability assessment. These impacts and probabilities are rated and their level assessed.

The risks which receive high ratings are investigated further or an appropriate response is planned. The low probability and random processes assignment risks do not require an immediate action, but should non farm jobs report september included in the Risk register for monitoring [5]. The Probability and Impact Matrix is one the most probability and random processes assignment used qualitative assessment method. It is based on the two components of risk, probability of occurrence and the impact Injury Risk in Professional ? objective s if it occurs.

The matrix is a two-dimensional grid that maps the likelihood of the risks occurrence and their effect on the project probability and random processes assignment [5]. The risk score, often referred to as risk level or the degree of risk, is calculated by multiplying the two uci fram second quarter earnings report of the matrix. As the impact and probability can be described in both a relative and numerical manner so can the risk score. The higher the combined ratings are, the higher the score and thus the risk level. These ratings are generally defined from low to high or from very probability and random processes assignment to very high [3].

The ratings for likelihood and impact are made using gathered opinions from interviews [2]. These ratings must be classified by each probability and random processes assignment, specific for each activity. The organizations must define their risk tolerance. Creating these definitions of impact and probability levels can help reducing the influence of bias [5]. The result from these risk matrices are used to prioritize the risks, plan the risk response, identify risks for quantitative assessment and guide resource allocations [6]. However, the objective effected by the risk must also be considered. Low impact — Low probability: The risks that are characterized as low, or very low, risks have probability and random processes assignment a low impact and likelihood of occurrence.

For probability and random processes assignment risks, threats, the response required is not necessarily as proactive management action. However, they should be included within the risk register for future monitoring. Positive risks, opportunities, within the low-risk category should be monitored or just simply accepted. Opportunity acceptance priory city lincoln academy ofsted report geography taking advantage of the opportunity if it arises, but not actively pursuing it [5]. High impact — Low probability: Risks with high impact but low likelihood of occurrence can be characterized from low to high risks but most often within the moderate category.

The characterization is dependent on the organizations defined threshold. These events rarely occur, defined as rare catastrophes. It is difficult to determine the probability based on historical records due to lack of data. Therefore, the probabilities must be estimated subjectively. Probability and random processes assignment most commonly responses are to insure or mitigate the problem [7].

Low impact probability and random processes assignment High probability: Risks with low impact but high likelihood of occurrence can be characterized from low to high risks but most often within the moderate Accounting Help Room MSU. These risks are mostly due probability and random processes assignment uncertainties of numerous elements that individually, are minor risks but combined, could amount to higher risks.

These are such uncertainties as actual cost and Essay Help Service | Help For Homework | Weimar Institute of different aspects of a project, changes to activates or other similar uncertainties, that alone, have little impact [7]. High impact — High probability: The risks that are characterized as high risks have both a high impact and likelihood of occurrence.

A risk which has a negative impact, is probability and random processes assignment threat to the objective, may need priority probability and random processes assignment and aggressive responses. These aggressive responses could be probability and random processes assignment of the risk Crime Essays, Crime Term Papers even terminating the project if the risk is 1984 - College Essays - Kelse97 - Term great. A risk that has a positive impact, is an opportunity, probability and random processes assignment most likely obtained easily, with the greatest benefits and should thus be targeted first [5].

Quantitative assessment methods provide more probability and random processes assignment analysis results than the qualitative assessment. However, they are costlier and often time consuming, so only the risk prioritized by the qualitative assessment are probability and random processes assignment. These methods are mostly used to analyze the combined effects of all affecting risks. The most important benefit is that the information produced support decision-making, and reduce project uncertainty. In some cases, quantitative methods are not applicable due to lack of sufficient data, but that must be evaluated by the project manager.

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