Risk Implementation Considerations – Coursework Example
Risk Assessment The Delphi Technique involves the use of a facilitator who in man d with the duty of distributing a questionnaire to experts. The responses the facilitator receives are then summarized after which the questionnaires are re-circulated to the experts as they provide comments. This technique allows the experts to assess the risk and provides unbiased data thus there is no individual who has undue influence on the risk minimizing actions taken. The sensitivity analysis also known as the what-if analysis targets to assess risk by considering the amount of valuation of aspects such as the ultimate portfolio, trade changes by considering the variation on the independent inputs. Sensitivity analysis should part of an overall risk management analysis bearing in mind that it has the advantage of simplicity in terms of calculations and the output results are easy to review. The Monte Carlo simulation on the other hand lets one to assess possible outcomes of decisions, the impact of risk and thus allow better decision making in the face of uncertainty. It employs computerized mathematical techniques allowing for risk accounting for risk in quantitative analysis and decision making guidance.
In the assessment of risk, the methodology to adopt would be influenced by resources available and the type of risk. If there are expert human resource, Delphi technique should be adopted. When the information management system is well designed, Monte Carlo and sensitivity analysis should be adopted.
Prior to the start of a project, some of the implementation considerations to consider could be to draft instructions and requirements expected of the team to undertake the project and later training them on that. The second consideration would be to acquiring of the personal protective equipment and materials. While the projects could be on different sectors, these two components tend to be strategic components in the management of risk. They are proactive in nature thus they apply before a project begins.
JordaÌƒo, Benigno. Risk management. New York: Nova Science Publishers, 2010. Print.