1. Discuss the critical components of a risk assessment, and why they are so important to include in the planning and execution. 2. Our text book discusses the probability scale (see p. 121) being low
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Sruthi Kacham
Week 6 Discussion
COLLAPSE
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Risk assessment refers to “a systematic process of identifying hazards and evaluating any associated risks within a workplace, then implementing reasonable control measures to remove or reduce them” (Hordyk & Carruthers, 2018). Some important components of risk assessment include hazard identification, hazard characterization, exposure assessment, and risk characterization. These aspects are important in the planning and execution phase as they allow for the risk to be put into account to have a smooth flow of work.
From my research, I found four types of probability scales. The first is qualitative which is what we have on low, medium and high risk. This is an educated guest. The second is quantitative probability which is found by conducting a risk analysis. It is calculated in percentage such as fifty percent which will be represented as 0.6 (Szymański, 2017). The discrete probability distribution breaks down each probability to see the different levels of impact. This scale “can be represented as a table of probabilities and impacts” (Szymański, 2017). The last one is continuous probability distribution gives a more detailed probability than a discrete probability distribution. Here, the probability could be $ 1200.45 (Szymański, 2017).
Qualitative risk assessment would be a better fit when the project is small than a quantitative risk assessment (Hordyk & Carruthers, 2018). This is because the qualitative risk assessment looks at every single risk that could occur in the project (Hordyk & Carruthers, 2018). It would therefore prepare the team for the worst-case scenario. The quantitative risk assessment looks at the overall risk of the project.
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Shreya Rudrashetty
Discussion 6
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Risk assessments are the major consideration in the organization, and they will determine the business operations and minimize risk factors. Technical safeguards will be helpful to analyze business operations and identify the vulnerabilities. Organization safeguards are the major consideration across the systems because it is designed to consider the specific data and conduct right activities on the system. administrative safeguard will protect the legal system and legal processing for the organization.
The risk scale and risk analysis will be processed and integrated with risk priority and risk level. Organizations having individual and different scales to analyze and assess the risk scale so it is important to assign risk level, risk priority, and risk impact on the scale to assess the risk level in the organization and it will be a great help for the team to address the issues. The high-level risk factors, medium level risk factors, and low-level risk factors are the probability cases and it will provide the information and vulnerability details to organization higher management.
The Qualitative and quantitative risk analysis will be a great approach to organizations and provide the right effective solutions (Gibson, 2020). Qualitative risk analysis more trend in nature and it will be helpful to analyze and measure the risk events across the organization and this process can be analyzed and integrated with the project life cycle. The descriptive risk assessment can be analyzed with a quantitative approach and the risk level will be the qualitative approach. It is important to analyze the risk factors, risk elements, and risk procedures because it will guide organizations and strategies to improve business operations.
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Chandrasekhar Divi
week 6 Discussion
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1. An assessment is a critical component of all risk analysis, including a risk assessment for the customer. The risk assessment must be performed regularly. A risk assessment should be performed annually in consultation with the customer. Where there is a lack of availability of a particular service, an assessment may be required and must be performed at least annually, preferably annually, to obtain at least a reasonable assurance of adequate availability. Four components inform risk assessment: a risk statement, risk analysis, risk assessment strategy, and risk management strategy-these four components are-Assessment Strategy, Analytical tools, Procedure (Alsahly et al., 2021).
The risks associated with each component of a risk assessment will have to be weighed as they relate to their importance in assessing the risks. It is essential to make the assessment strategy as strong as possible to give a clear sense of the risks' impact. The assessment strategy's outcome has to be determined by the risk assessment system. This means that the assessment outcome is essential in determining a risk assessment strategy(Alsahly et al., 2021).
2. Other important scales from other industries would include operating profit (net profit after tax): this is the amount by which sales revenue exceeds the cost of sales. It is calculated by dividing the total net profit by the number of units sold. Sales can be further divided into fixed assets and operating assets. Operating assets include-Fixed assets, including buildings, equipment, and plant; Fixed assets not currently being used; Long-term debt; Preferred stock; Common stock; Retained earnings; Other retained earnings; and Other retained earnings. Estimated cash flows associated with current operations, as measured by a straight-line relationship. 5. Net working capital as a percentage of net working capital. Capital budgeting is a concept that applies to companies and their managers. Companies will typically have three capital budgets: cash, accounts receivable, and inventories (Lin et al., 2021).
3. This is one of the most challenging subjects in all risk assessments. They must consider several factors when deciding how to approach a risk assessment. These include the following: The nature and intensity of the risk The desired and actual impact to the organization The ability of the organization to mitigate the risk The cost of not mitigating the risks following are some of the reasons qualitative risk assessments are performed: To gain an understanding of specific, tangible and measurable consequences To anticipate the magnitude and timing of each potential adverse event To be able to compare alternative courses of action To prioritize different courses of action To be able to determine how to proceed if a decision is taken The qualitative assessment process should consider all the relevant factors (Qualitative Risk Assessment Methodology Appendix IV, Glossary) and estimate the probability of eachfactor occurring or not occurring. These factors can be seen as variables of an environment, an environmental factor that affectsorganizations' behavior within the given context. For this discussion, an environmental variable impacts the external environment and influences other organizations within the given context (Studwell et al., 2021).
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