The paper "Risk Analysis or Assessment, Risk Response " is a good example of business coursework. The advancement in technology, coupled with such other factors for instance globalization has led to an increase in major projects so as to steer economic growth within the areas they are implemented. In this regard, to undertake a project a number of barriers are faced but the most common to all is the charges within the environment. It is important to note that for any project to succeed (or its objectives achieved) parameters such as on-time completion, within particular technical requirements and budget (Dey, 2010, p.
990). Challenges that face a project multiply more depending on the size of the project. For instance, large construction projects are characterized by an unpredictable environment because of factors such “ as planning and design complexity, presence of various interest groups (project owner, consultants, contractors, and vendor’ s etc) resources (materials equipment, funds etc) availability, climatic environment, the economic and political environment and stationary regulations” (Dey, 2010, p. 990). Based on the aforementioned challenges, risk management process or strategies have become the norm in the context of project management.
This is attributed to the fact that risk, as well as other challenges facing a project, has got a considerable impact on project results. According to KarimiAzari (2011, p. 1-7), effective control of identifiable project risks impacts positively on the management of a cost of the project as well as on the project completion. Cagno (2007) describes the project as a doubtful event that may or may not occur and upon its occurrence, will impact heavily on objectives of the project (p. 2).
In another perspective, Cagno (2007, p. 1-2) argues that risks which are common to all projects can be divided into four: technical, commercial, environmental and managerial risks. This is illustrated in the Risk Breakdown Structure (RIBS) in appendix A Cagno (2007, p. 1-2). Generally, the most common processes used risk management is typically categorized into; initializing of the risk management system, risk identification, qualitative and quantitative analysis, planning of mitigation measures, monitoring and control risk. In the same note, Wyk et al. (2008) argue that generic risk management processes include; ‘ define, focus, identity, structure, ownership, eliminate, evaluate, plan and manage’ (p.
154). However, in the context and scope of this research essay a four-stage risk management process will be focused on, ‘ risk identification, risk analysis, risk response and reporting’ . 2.0 Risk Management Strategy To efficiently manage project risks, these four stages must be implemented and they are typical in all context of project management. In the risk identification stage, classification and allocation are considered whereas the risk reporting stage encompasses monitoring, controlling and evaluation of project risks these four generic stages of project risk management are explained in the sections below while taking a closer look at integrated risk management framework applied by a South African Utility Company (Eskom Holding ltd) in its recovery plan project (Wyk et al. , 2008, p.
150-160). Furthermore, according to Well-Stam et al. (2008, p. 50), risk management in the perspective of project-dependent approach emphasizes much on project management strategy as illustrated in the figure below.
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