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Project Risk Management

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Project Risk Management
"Project Risk Management" Please respond to the following: * Describe some of the tools and techniques that you can use as a project manager to mitigate risk in your projects. Support your response. * Provide realistic examples of each of the risk response strategies for both negative and positive risks.
According to Schwalbe, risks can be assessed qualitatively or quantitatively. Tools for qualitative risk analysis include a probability/impact matrix and the Top Ten Risk Item Tracking Technique. Tools for quantitative risk analysis include decision trees and Monte Carlo simulation. Expected monetary value (EVM) uses decision trees to evaluate potential projects based on their expected values. Simulations are a more sophisticated method for creating estimates to help you determine the likelihood of meeting specific project schedule or cost goals. Sensitivity analysis is used to show the effects of changing one or more variables on an outcome.
The four basic response strategies for negative risks are avoidance, acceptance, transference, and mitigation. Risk avoidance involves eliminating a specific threat or risk. A project team may decide to continue using a specific piece of hardware because they know it will work. Risk acceptance means accepting the consequences of a risk, should it occur. A project team can take an active approach to risk by having a backup plan if they cannot get approval for a specific site for a meeting. Risk transference is shifting the consequences of a risk and responsibility for its management to a third party. A project team may purchase additional warranty protection for specific hardware. Risk mitigation is the reducing the impact of a risk event by reducing the probability of its occurrence. A project team may choose to use proven technology over a cheaper...

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