MNO3706 Assignment 1 (COMPLETE ANSWERS) Semester 2 2024 - DUE August 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. 1. Explain the use the technique used to measure or manage risk. (10) Measuring and managing risk involves various techniques and methodologies to identify, assess, and control risks to minimize their impact on an organization or project. Here’s a detailed explanation of commonly used tec hniques: 1. Risk Identification Techniques : • Brainstorming : Engaging team members to generate a comprehensive list of potential risks based on their experience and expertise. • Checklists : Using pre -established lists of common risks relevant to the specific i ndustry or project to identify potential issues. • Interviews : Conducting interviews with stakeholders, experts, or team members to gather insights about possible risks. • SWOT Analysis : Analyzing strengths, weaknesses, opportunities, and threats to identify i nternal and external risks. Purpose : To uncover potential risks that could impact the project or organization. 2. Risk Assessment Techniques : • Qualitative Risk Analysis : Assessing risks based on their likelihood and impact using subjective measures. Tools include risk matrices or risk prioritization charts. o Risk Matrix : A grid used to prioritize risks by plotting their likelihood against their potential impact. o Risk Prio ritization : Ranking risks based on their significance to focus on the most critical issues. • Quantitative Risk Analysis : Using numerical methods to estimate the probability and impact of risks. Common techniques include: o Monte Carlo Simulation : A statistica l method that uses random sampling to estimate risk probabilities and impacts. o Decision Tree Analysis : A graphical representation that outlines different decision paths and their associated risks, probabilities, and outcomes. Purpose : To evaluate the sever ity and likelihood of identified risks and prioritize them for management. 3. Risk Management Techniques : • Risk Avoidance : Changing plans or processes to eliminate the risk. For example, avoiding risky activities or using safer alternatives. o Example : Modify ing a project scope to avoid high -
risk areas or changing suppliers to mitigate supply chain risks.
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