Question

Categorise the various components within the risk identification phase and explain why it is necessary to understand the downstream effect in risk management. (25)

Answer 1

Let me categorize or identify various components with the risk identification phase, also let me discuss the necessity to understand the downstream effect in risk management, those are as stated below:

• First, we can consider Expert judgment, here, Project manager can involve various experts to indentify various associated project risks, what will be effect for each risk if happened, what are the sources of each risk, such risk can be prevented, preparing risk response plan and implement them accordingly could be possible by taking help from Expert’s Guide,
• Next category is Data Gathering Techniques, such Data gathering techniques could include brainstorming, Checklist preparation and Interview process, with the help of Brainstorming, here, each individual can perform their research and generate various ideas, find associated risk and solutions as needed for such risk in a particular project, Checklist can help us to prepare list of Identified Risks as applicable for a project, then we should update that checklist over time, and by using Checklist, It is necessary to update that whether a particular risk has occurred, solved or not occurred over time, Interview can include discuss privately with one person or with group members, that process can consume more time, but we can discuss about the identification of risks and associated solutions, sources of risk with each individual and group of people,
• The next category is Data analysis Techniques, that include Root cause analysis, SWOT Analysis, Document analysis, Assumption and constraint analysis, here, we will be able to understand associated root cause or source from where the risks are coming, with the help of SWOT analysis, we can perform strength, weakness, Opportunities and Threat associated with various Risks and risk situations, thus, all such techniques are quite useful to understand the downstream effect in risk management.
• Some other techniques also can be performed, those are like Interpersonal and Team skill, Prompt lists and Meetings etc,    all such tools have good role to understand the downstream effect in risk management. Interpersonal and Team skill could include facilitation, that can identify individual project risk and sources of overall project risk,