Question

Question 1

A) Describe approaches that might be useful in a company prioritising projects where there are a number of potential projects, and resources are scarce

B) Describe the main elements of a comprehensive and effective approach to project risk management.

What do you understand to be the distinction between qualitative and quantitative risk analysis?

Answer 1

A. To company prioritizing projects where several potential projects and resources are scarce first involved in strategic planning, make a meeting with the leadership team to gain the full knowledge of the project and resources. Time, resource availability, the direction of business should be there in the meeting.

2. Identify the project drivers because various factors drive projects. Talk with the project team to identify the competitive challenges, cost, risk reduction, growth.

Quantify the strategic value by discussing the various projects to determine the outcomes and impacts. The strategic value understands the long term benefits and losses.

4. Determine the factors that may impact on the project because it helps to reduce the risks and roads to minimum use of resources for various projects.

5. Review, revise, and relocate to reduce the risks and losses, minimize resource use, and increase the project's effectiveness and efficiency.

B. The main elements of a comprehensive and practical approach to project risk management are strategy and planning, risk identification, analysis, planning response, monitoring and control in the process, source risk, asset identification, and solutions cost.

Quantitative risk analysis is a technique to quantify the project's risk and some risk assessment necessary to deal with uncertain events with many outcomes. A qualitative and numerical rating is there to develop a probabilistic analysis of the project. It is helpful to identify the realistic and achievable costs, schedules, and targets for a project. It is more subjective compare to qualitative risk analysis.

Quantitative risk analysis is a scientific technique that uses verified data to analyze the effects of risks of cost revenues, creep of scope, use of resources, and delay from schedule.