InstructionsUse the projects you completed in Units III and VI to conduct a preliminary risk analysis. Use a qualitative and a quantitative technique to evaluate project risk. The total assignment is

MBA 6961, Project Management 1 Cou rse Learning Outcomes for Unit VII Upon completion of this unit, students should be able to: 4. Recommend methods of risk management on project teams. 4.1 Compare qualitative and quantitative techniques to identify project risks. 4.2 Explain preliminary strategies used for risk mitigation. 4.3 Develop a resource -leveling chart. Reading Assignment Chapter 7: Risk Management, pp. 223 –243 Chapter 12 : Resource Management, pp. 400 –424 Chapter 13 : Project Evaluation and Control, pp. 431 –459 Unit Lesson Introduction As we have seen in previous units, projects are susceptible to many risks, from inaccurate project estimating to financial and environmental uncertainties. It is essential that project managers (PMs) identify, manage, and control all significant potential risks to maximize the likelihood of project success. This unit will provide an overview of risk management, resou rce management, and project control as strategies to mitigate risk. Risk Management As previously noted, risk is an inherent part of any project. According to the Project Management Body of Knowledge , risks are uncertain occurrences that may impact a project in eithe r a positive or negative manner (Project Management Institute [PMI], 2013 ). Risks affect project performance, and the level of risk increases when this effect is both uncertain and significant on its influence to the overall project perform ance. Project risk has a direct correlation to the definition of project objectives and project criteria. As an example, setting tight deadlines or time frames makes the project prone to high levels of risks. Conversely, allowing for ample slack time and h aving less stringent quality requirements implies less risk both in time and quality. Still, setting inappropriate levels of time and quality is a risk in itself. No project is exempt from risk, but planning and control can mitigate risks. An organization can minimize project risks but cannot eliminate them. Eliminating the probability of risk is unlikely because the probability of an event taking place i s beyond the PM’s control . Risk has three primary elements: 1. an event or unwanted change, 2. a probability of occurrence, and 3. the effect or damage from the event. Two types of events can take place in a project: 1) favorable events that are called opportunities and 2) unfavorable events, which are also called risks . In general, a manager must consider both the uncertainty and benefit or damage of the event when performing risk analysis. UNIT VII STUDY GUIDE Risk, Resources, and Control MBA 6961, Project Management 2 UNIT x STUDY GUIDE Title Risk management is a critical part of project management that requires forward thinking and proactive planning. Pinto (2016) described the risk management process as “ the art a nd science of identifying, analyzing, and responding to risk factors throughout the life of a project and in the best interests of its objectives ” (p. 225). A manager can identify risks by their cause, including both external and internal risks. External risks include those events that are beyond the PM, the team, or the organization’s control. External risks include governmental regulation, natural disasters, or war. Internal risks are within the control of the PM, team, or organization. Internal risks include human behavior, technology failure, communication failure, or organizational politics. The lists for both external and internal risks go on, and the PM must prepare to mitigate those risks. Most risks are more profound at the onset of the project than near the end. Accordingly, management should find it critical to identify as many external and internal risks as possible, while also identifying the probab ility of occurrence, the potential effects, and the ways to minimize the likelihood of occurrence by implementing a co ntingency plan . Resource Management The completion of tasks requires resources. Tasks with more resources have a higher probability of completion. One of the main responsibilities of a PM is the distribution and assignment of proper resources between individual team members or work groups. Three basic principles guide resource management: 1. Balanced and purposeful : Managers should allocate to the same extent for similar activities. 2. Adequate : Rewards should correspond to the results. PMs should practice fairness when rewarding resources. 3. Collegial : Resource distribution means project stakeholders should agree on their load in advance. Shortage of proper resources is a major challenge for many PMs and organizations. Pinto (2016) discussed several procedures to reduce the negative effects of unbalanced resources during a project. One approach to minimize resource scarcity is through the use of resource leveling. Resource leveling is a technique to reach a balance of resource utilization throughout a project. The general approach is to prioritize tasks and activities with the shortest slack time, the smallest duration, the lowest activity identification number, the most successor tasks, and th e ta sks requiring the most resources (Pinto, 201 6). Another approach is to lessen activities that require team members to multitask. In today’s organizational environments, multiple projects or activities exist within a project, requiring PMs to share resourc es, particularly human resources, which may mean team members may get tied up in other projects or activities.

When sharing resources, a risk exists that a critical resource may get held up on another project. PMs must be ready to properly distribute the w orkload to other team members to stay on schedule with project activities. PMs should anticipate risk, identify opportunities, and stay proactive with possible risks in resource allocation. Project Control The goal of project control is to ensure the adv ancement of the project’s objectives. Project control ensures that a manager accomplishes project activities as expected and takes the necessary steps to make corrections as needed. Monitoring and reporting systems provide the PM with valuable information on problems or potential problems. Many tools are available to assist PMs with the evaluation and control of project activities. A manager cannot use these systems without the input and interaction of the project’s stakeholders, particularly the PM. CORE CONCEPT S When thinking about risk, think of MART . Risk can be mitigated, avoided, r etained , or t ransferred. It is the project team that determines the preferred strategy . MBA 6961, Project Management 3 UNIT x STUDY GUIDE Title Conclusion Risk management is an important subset of project management. PMs must engage themselves in risk management in order to understand, monitor, and control risks throughout their projects. Risk management involves risk identification, risk analysis, risk planning, and risk monitoring. Resource management challenges also introduce project risks invo lving financial, political, and human resources among others. Project controls ensure that risks are identified and mitigated before problems arise. Understanding project risks enables PMs to more effectively fulfill the project’s objectives and meet stake holders’ expectations. References Pinto, J. K. (2016). Project management: Achieving competitive advantage (4th ed.). Boston, MA: Pearson . Project Management Institute . (2013). A guide to the project management body of knowledge (5th ed.). Newtown Square, PA: Author . CO RE CONCEPT S Control should not have a negative connotation. Control is the application of corrections for deviations from the risk mitigation plan.