State the importance of identifying risks and categorizing them as high, medium, or low probability. Explain why risks associated with the critical path of the project need special attention. Cite and reference your resources.
After answer your question on 300 words paragraph, in two different paragraph give your personal opinion to Tamara Seguin and Samantha Taylor
There are many reasons why risk management is important and categorizing the risks. Risk management helps recognize and manage potential issues that could occur while the project is in place. There are three categorizes that the risks can be identified as; high, medium, and low. Categorizing risks, either positive or negative, is important and crucial. Identifying the risks beforehand, will help understand what is more effective and will help save management time. Costs can be saved before anything else is done to raise the cost. Every risk matters, but categorizing them in each category helps management have more control and grip on what occurs and the projects. It is hard to identify risks because it is hard to avoid them, but if the risks can be identified properly, more control can take into effect and help the project. The severity of the risk will help determine how the management team and the project will be able to be worked around or accepted.
Negative risks can cause damages and have a huge impact on the overall completion of the project due to having a long duration throughout the network causing delays to occur and push the project further from being completed. R\Negative risks have control on the completion of the projects. Paying attention to negative risks helps manage and safe time. Although negative risks are important for manager to know and understand, positive risks are also important. Both types of risks follow the same process which means having a plan is vital and to have the proper funding in place for the projects.
Larson, E. W., & Gray, C. F. (2011). Project Management: The Managerial Process fifth edition. New York: McGraw-Hill/Irwin.
When taking on a new project it is very important to determine the risk involved. One way to do this is using a risk impact/probability chart. According to Mindtools (2019), it is important to know what risks you may face, it is important to prioritize the risks so you can focus on the important risks you need to focus on.
With a Risk Impact/Probability Chart you define the risk into two categories, probability and impact. Probability is and event that may occur on a scale of 0 percent to 100 percent. Impact determines how much of an effect the risk will have on you. This can include cost, patient health and other areas.
Here’s how it works. Bottom left corner is low impact/low probability, these are usually insignificant. The top left corner is low impact/high probability, these are a high risk and should be addressed so you can reduce the chance they will happen. The bottom right corner is high impact/low probability, these are not likely to happen, but you should reduce the impact if possible and have a contingency plan in case they do happen. Top right corner, high impact/high probability are of the utmost importance. These are the priority and you must focus your attention on these.
- You should make a list of all the risk that may occur with your project.
- Evaluate each risk and give it a rating such as a scale of 1-10. One being least likely to happen and 10 being very likely to happen.
- Use the chart to develop your list.
- Determine what and how to respond to each risk in your chart and list by developing a risk response plan.
Mindtools (2019). Risk Impact/Probability Charts. Retrieved from https://www.mindtools.com/pages/article/newPPM_78.htm