Question

Risk assessment refers to the overall process of risk identification, risk analysis and risk evaluation; in the scope of the Risk Management Planning Process. Risk identification generates a list of the risks that may have an impact on the project and create uncertainty about whether or not it will achieve or exceed its objectives. Risk analysis is the systematic use of available information to develop an understanding of the risk. Risk evaluation is the process of comparing the estimated level of risk against risk criteria to determine the significance of the risk. Applying this process helps a project team make informed decisions about how to take action towards controlling/managing risks.

Applying your understanding of the stages of the Risk Assessment Process, how do you believe you have applied these steps in order to make informed decisions in your personal or professional life?

1. Is there a conscious (or subconscious) process you explore when evaluating your options and how they may impact your desired outcome? Ex. You write down pro’s & con’s for a potential decision.
2. What information do you use when ‘weighing your options’? Ex. Historical results/outcomes, feedback from a trusted source, etc.
3. What “criteria” do you use to decide what’s MOST important to you when making your decision? Ex. Your personal morals, company policy, the opinion of others, etc.

Answer 1

I can mention a scenario that I went through, to provide a vivid understanding about how I believe have applied the three steps involved in risk assessment to make informed decisions in my professional life.

Acting as a project facilitator and a Liaison I had to go through a project involving considerable amount of Uncertainty regarding whether the project with a foreign client was going to succeed or fail and whether it should be continued or not.

Wining the project was really important for ensuring competitive advantage and stability in the company. But succeeding the project involved various barriers, so I went through identifying the various complexities and challenges (Risks) involved in the project.

The risk identification involved the various challenges resulting in producing uncertainty of winning the project involved :

1) The cultural barriers resulting in differences in the work ethic, values, beliefs, and perspectives between our company and their management decision making.

2) The language differences making interpretation of exact intend very hard for understanding their exact needs and desires.

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Yes there was a conscious process involved ,while evaluating my options as how they can impact my desired outcome.

The decision of whether to continue the deal with them irrespective of identifying the above mentioned risks which can pose challenges in producing the desired output and might result in failing to come up to meet the expectations of our foreign client , depended largely on the " benefits and loss analysis " to determine whether to Perform or back off from the project. The following Pros and Cons Were dentified :

Pros of completing the project :

Competitive advantage for the company.

The enty in the foreign market and understanding of global trends.

The high return on investment that cannot be received from signing even multiple local projects.

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Cons :

Risk of inability to understand the desires and needs of foreign clients which might result in failing to meet the expectations.

Challenges in interpretating the foreign climate, work ethic and perception differences resulting in failure to understand to give them exactly what they wanted.

Short deadline and strict regulations.

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Risk assessment was performed in order to evaluate the degree, intensity and level of existence of risks that project will fail to produce desired outcome.

While weighing my options I found that, seven out of 10 projects in the history of organisation passed while dealing with foreign clients each from different country and background along with the same or even more amount of risk involved.

After hiring a consultation expert, the possibility of delivering the project as and how needed was 89% if appropriate measures such as personnel with efficient interpersonal skills, talented arbitrator etc were hired.

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Risk evaluation criteria was used to decide what was most critical while making the decision. The proper measures and tools such as the level of uncertainty, the foreseeable complexities in communication, the challenges in collaboration etc were assumed to make the ultimate decision about whether negotiation was possible.

The policy of company, and core values of "Foreign growth and expansion" encouraged to expand the business and grow the business through entering the foreign markets was one of the critical factor that guided the ultimate decision of continuing while keeping provisions for dealing with risks.

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Thanks dear student..

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