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1. a) What is Risk management planning? (5 Marks)

b) Examine the inputs when planning to manage risk? (10 Marks).

c) Explain the goal of project management when considering inputs in the risk

management plan? (5 Marks) 2. Assess the process of risk management

planning?

SECTION ONE

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5. Telesom company of Somaliland after careful scanning of future environment of business, has

realized soon there will come a new entrant in the industry of mobile telephony. It is expected the third

subscriber will come with better capacities and might eat into their market share.

In order to manage the risk a decision needs to be made between the following three options;

Update current software at a cost of US$ 500,000Buy new software at a cost of US$ 750,000Stay with existing software and incur maintenance

cost of US$ 100,000

Show how you would arrive at analysis of risks and make the most beneficial decision to company by

use of technique of decision trees. (20 Marks

SECTION TWO (Compulsory)

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Answer of exam…Q1A. Risk management is an important part of planning for businesses. The process of risk management is designed to reduce or eliminate the risk of certain kinds of events happening or having an impact on the business.

In another hand, we can say, Risk management is a process for identifying, assessing, and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events

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As we awarded, there are many different types of risk that risk management plans can mitigate. Common risks include things like accidents in the workplace or fires, tornadoes, earthquakes, and other natural disasters.Also, it can include legal risks like fraud, theft, and sexual harassment lawsuits.Risk management ensures that an organization identifies and understands the risks to which it is exposed. Risk management also guarantees that the organization creates and implements an effective plan to prevent losses or reduce the impact if a loss occurs.

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A risk management plan includes strategies and techniques for recognizing and confronting these threats. Good risk management doesn’t have to be expensive or time consuming; it may be as uncomplicated as answering these three questions: 1.What can go wrong? 2.What will we do, both to prevent the harm from occurring and in response to the harm or loss? 3. If something happens, how will we pay for it?

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Risk management provides a clear and structured approach to identifying risks. Having a clear understanding of all risks allows an organization to measure and prioritize them and take the appropriate actions to reduce losses Risk management planning is about making decisions. The project manager, the project team, and other key stakeholders are involved to determine the risk management processes. The risk management process is in relation to the scope of the project, the priority of the project within the performing organization, and the impact of the project.

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Q1B.Whenever i ex-precise in my study or examine the inputs of planning to manage a risk, I would like to say, the input of planning is the one that I expect to gain during the lecture, and my supervisor wants me to retune in a output.Like that, every organization want to have a input of planning and wants to get his result as a output. Another input to effective risk management planning is the defined roles and responsibilities. These include the predefined roles, responsibilities, and authority levels of the people that will influence project planning.

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The final input to risk management planning is stakeholder risk tolerances. Different organizations and different individuals have varying tolerances for risk. These tolerances may be expressed in policy statements or in actions. The starting point of any risk management planning process must include inputs. Without them, the effect of your risk management planning would be like trying to take medicine from an empty bottle: no inputs, no positive benefits. Understanding the inputs used in planning risk management activities is basic to a sound project management approach at any level of expertise.

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a) Enterprise Environmental Factors: The attitudes toward risk and the risk tolerance of

organizations and people involved in the project will influence the project management plan.

b) Organizational Process Assets: Organizations may have predefined

approaches to risk management such as risk categories, common definition of concepts and

terms, standard templates, roles and responsibilities, and authority levels for

decision-makingc) Project Scope Statement

Total expected deliverables, objectives and other areas to be covered by the project must be clearly stated in order to be clear on the

limits and boundaries. Any assumptions inherent need to be declared

Risk Management Planning – Inputs

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Risk management requires management plan on the right structure that facilitates

integration of all processes i. e. HRM, cost schedules, quality management, time

and scope management.

d) Project plan management

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Q1. C. Whenever i put in my concept of study the goal of project management, i would like to say that, the idea that behind using project management it to protect the businesses or organization from being vulnerable.

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Many business risk management plans may focus on keeping the company viable and reducing financial risks. However, risk management is also designed to protect the employees, customers, and general public from negative events like fires or acts of terrorism that may affect them. Risk management practices are also about preserving the physical facilities, data, records, and physical assets a company owns or uses.

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Goal of project management is to;Increase the impact and probability of positive risks.Decrease the impact and probability of negative risks.Points are not only avoiding risks, but, also bring about opportunities from the positive risks.Time and energy, skills/total resourcefulness can be sent on avoiding, transferring to 3rd party and mitigating potential failure

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Q2. . If i assess the process of the process the of risk management planning.As every one of us award, the risk assessment process includes the identification critical risks, which could have an adverse impact on the program, and the analyses of these risks to determine: the consequences, the probability of occurrence, the impact of the consequences on the program, and the time frame during which the consequences are likely to occur. It is the most demanding and time-consuming activity in the risk management process.

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Also, there is another way, that we can use during the evaluation process, that is a Baseline Risk Assessment. This is always happening the first risk assessment performed in the program.One way managers can assess the risks of doing business is by using the risk calculator developed by Robert Simons, a professor at the Harvard Business School. Although the risk calculator is not a precise tool, it does indicate areas where risks and potential losses exist, such as the rate of expansion and the level of internal competition. Using the risk calculator, managers can determine if their company has a safe or dangerous amount of risk. The risk calculator measures three kinds of internal pressures: risk stemming from growth, corporate culture, and information management

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All in all, that is some information about the assessment process of a RM.So there are six steps that we are processing during risk management planning those are:-1.Risk management planning2.Risk identification3.Qualitative risk analysis 4.Quantitative risk analysis and prioritization5.Risk response planning/Tracking and reporting6.Risk monitoring and control/learning

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RISK MANAGEMENT PLANNING - Process of deciding how to approach and plan the risk management activities for a project. Risk Management Planning process is a part of "Project Planning Phase". Planning Meetings and Analysis: Attendees are the PM, leadership team, key stakeholders and those in the organization responsible to manage project risks.

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Risk identification 2.1) Determining which risks might affect the project and documenting their characteristics. Risk Identification is an iterative process, involving the project team, management team, stakeholders and subject matter experts (if required). Risk Identification process is a part of "Project Planning Phase".

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2.2) Project Scope Statement: Project assumptions are found in the project scope statement. Uncertainty in project assumptions should be evaluated as potential causes of project risk.2.3) Risk Management Plan: Risk Management Plan reveals key inputs from the Risk Identification process such as the assignments of roles and responsibilities, provision for risk management activities in the budget and schedule, and categories of risk.

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Project Management Plan: The Risk Identification process also requires an understanding of the schedule, cost, and quality management plans found in the project management plan.(See time planning schedule).

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3.Qualitative risk analysis  Process of assessing the impact and likelihood of identified risks. This process prioritizes risks according to their potential effect on the project. Qualitative Risk Analysis process is part of "Project Planning Phase".(1) Organizational Process Assets: Data about risks on past projects and the lessons learned knowledge base can be used in the Qualitative Risk Analysis process. (2) Project Scope Statement. (3) Risk Management Plan: Key elements of the risk management plan for Qualitative Risk Analysis include roles and responsibilities for conducting risk management, budgets, and schedule activities for risk management, risk categories, definition of probability and impact, the probability and impact matrix. (4) Risk Register: A key item from the risk register for Qualitative Risk

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Quantitative risk analysis and prioritization Aims to analyze numerically the probability of each risk and its consequence of project objectives. Quantitative Risk Analysis process is part of "Project Planning Phase".  a) Quantitative Risk Analysis – Input (1) Organizational Process Assets: Information on prior, similar completed projects, studies of similar projects by risk specialists, and risk databases that may be available from industry or proprietary sources.