Question

Please respond to each of the below questions in a minimum of 5 well written paragraphs demonstrating your comprehension of the noted concepts and the ability to practically apply through provision of examples, supported by quality references.

Explain the basic risk analysis process and application to operations and project management.

Answer 1

Risk analysis is the process of identifying, defining, analyzing the possible risks in any business. This is done in order to minimize or avoid such future risks. Risks can be uncertainties which arise due to financial changes, natural calamities, resource mismanagement etc in any project.

Risk Analysis Tools and Techniques are explained below:

1. SWOT analysis: The SWOT analysis is a process of balancing a company's strengths and opportunities while minimizing a company's weaknesses and threats. The risks can be determined through these and it can be managed accordingly.
2. Brainstorming: The brainstorming is done to identify on the risks that occurs in the project by a group of people.
3. Delphi Technique: In the Delphi method the data are collected and the risks are identified by the experts and they would provide review and result for the same to overcome on the risks that occurs in the project.
4. Checklist Analysis: The upcoming risks for the projects can be identified through the checklist analysis, the solution can be taken according to that and the risk can be avoided.

The perceived risks impact a consumer’s decision process and affect the project as explained below:

1. The uncertainty occur when the consumer purchase the product and services due to the price, as where that impact on the decision making for the customers towards the purchase.
2. The quality of the product impact the customers on purchasing, as that interrupt with their social activities on how the other would think towards the purchase of the product and services, so that impact on the decision making of the customer.

The examples are given below:

The examples for perceived risk, as where it impact on the consumer towards purchasing of beauty products, because it impact on getting harmed on using the product and so the consumer would have a dilemma on purchasing the product, it is said to be as physical risk.

The status of the consumer would be determined according to the product they use, example of purchasing a car, as where the customer would have a perspective on getting the car would increase their status and decision would be taken according to that and it is said to be social risk.

The examples of the various tools to document control risk assessment in the project is given below:

Narratives: The narratives mean the report which can be connected with the events and information. Eg. The process would be continuous and helps to combine the details together and protect all the information.

Flowcharts: The flowcharts in which it acts as a guide towards documentation and controls on the decisions and reduces the risk on understanding the information that has been provided in the flowcharts. Eg: The information and the details can be visualized through the flowcharts.

Checklists: In the checklists the documents which need to be completed would have been noted, so that a proper plan is done and controls the risk assessments. Eg. The checklist contains on the plan and the process and it reduces the risks on missing on any items that needs to be included for the documentation.