Managing Threats and Opportunities and Escalating Risks
Discussion Topic: Managing Uncertainties that Matter
Through qualitative risk analysis, you have a good idea on which risks deserve the most attention. Our quantitative analysis gave us additional data related to project risks. Now we need to plan how to respond to these risks to reduce the overall risk on the project. Based on your previous research and your readings, discuss the following questions:
What are the major differences between managing negative risks (threats) and positive risks (opportunities)? Is it really important for the project team to manage both?
How can risk analysis be used for non-project business decision making?
When is it appropriate for the project team to use the “Escalate” risk response strategy for identified risks?
Reminder: A high quality post is one that explicitly links your personal opinion or experience with the course materials or other relevant outside sources using proper APA format. Both in-text citations and a reference list are required for this discussion. You may earn up to 10 points. I will use the attached rubric to grade your participation.
Discussion Post
Name
Institution
Course Code and Title
Instructor
Date
Managing Uncertainties that matter
Threats or Negative risks are factors that considerably negatively impact the project. They include hefty costs, delivery delays, or issues with product quality (Kerzner, 2017). Opportunities or positive risks are factors that pose a benefit to the project. They include savings on total costs, excellent product quality, and timely deliveries.
The main objective of managing threats is to reduce the impact of the risk on the project. On the other hand, the main objective of managing opportunities is to widen the scope of the risk to maximize its benefit on the project (Kivilä et al., 2017). When managing threats, the response strategies may include reducing the general impact of the risk, eliminating or avoiding the risk, and transferring the risk to a third party. On the other hand, when managing opportunities, the response strategies may include putting effort into causing the opportunity and increasing the probab...