Key Approaches for Analyzing Project Risks with Stakeholders

D.

By focusing on the high-priority of risk events through qualitative risk analysis you can improve the project's performance.

Qualitative analysis is the definition of risk factors in terms of high/medium/low or a numeric scale (1 to 10)

Hence it determines the nature of risk on a relative scale.

Some of the qualitative methods of risk analysis are: -> Scenario analysis- This is a forward-looking process that can reflect risk for a given point in time.

-> Risk Control Self -assessment (RCSA) - RCSA is used by enterprises (like banks) for the identification and evaluation of operational risk exposure.

It is a logical first step and assumes that business owners and managers are closest to the issues and have the most expertise as to the source of the risk.

RCSA is a constructive process in compelling business owners to contemplate, and then explain, the issues at hand with the added benefit of increasing their accountability.

Incorrect Answers: A: Subject matter experts can help the qualitative risk assessment, but by focusing on high-priority risks the project's performance can improve by addressing these risk events.

B: Stakeholders should be involved throughout the project as situations within the project demand their input to risk identification and analysis.

C: Qualitative analysis does use a fast approach of analyzing project risks, but it's not the best answer for this.

As a project manager for BlueWell Inc., your management has requested you to work with key project stakeholders to analyze the risks that have been identified in the project. The goal of this analysis is to improve the overall performance of the project. To achieve this goal, there are several approaches you can use.

Option A suggests involving subject matter experts in the risk analysis activities. This approach can be beneficial as subject matter experts bring their expertise and knowledge to the table, which can help in identifying potential risks that may not be apparent to others. However, this approach alone may not necessarily improve the overall performance of the project.

Option B suggests involving stakeholders for risk identification only in the phases where the project directly affects them. This approach can be useful in ensuring that stakeholders are engaged and informed about the risks that directly affect them. However, it may not lead to a comprehensive analysis of the project risks as not all stakeholders may be involved in the risk identification process.

Option C suggests using qualitative risk analysis to quickly assess the probability and impact of risk events. This approach involves assessing the risks based on their likelihood and potential impact. It can be useful in prioritizing the risks and identifying those that require immediate attention. However, this approach may not provide a comprehensive analysis of the risks as it is a simplified approach.

Option D suggests focusing on high-priority risks through qualitative risk analysis. This approach involves identifying and prioritizing the risks based on their likelihood and potential impact. It can be useful in focusing resources and efforts on the risks that have the most significant impact on the project. However, this approach may not identify all the potential risks that may affect the project's performance.

In conclusion, a combination of approaches may be necessary to achieve the goal of improving the project's performance through risk analysis with project stakeholders. This may involve involving subject matter experts, stakeholders, and using both qualitative and quantitative risk analysis to ensure a comprehensive and prioritized approach to managing project risks.