Risk Analysis Essay Example | Topics and Well Written Essays - 2000 words - 1

Risk Analysis - Essay ExampleAdditionally, risk can be defined as the probability(No author, 2000) of an resultant role multiplied by the cost of the event. The following paragraphs explain the nuances of the different risk management techniques.There are many Risk management techniques. Avoidance is wiz type of risk management technique. Also, modification is a nonher type of risk management technique(No author, 2000). Further, Retention is a very viable risk management technique. Lastly, communion is another popular risk management technique. To complete, risk reduction is very good alternative.Avoidance - Whenever an administration cannot offer a service while ensuring a high degree of safety, it should choose avoidance as a risk management technique(Drucker, 1980). Do not offer programs that pose too great a risk. In some cases avoidance is the most appropriate technique because a nonprofit simply doesnt have the financial resources required to fund adequate training, supervi sion, equipment, or other safety measures. Avoidance even includes not performing an activity that could produce risk. For example, A person would be discouraged to buying a billet or business in order to avoid taking on the liability that comes with it. Another example is that a project manager would be not flying in order to avoid taking the risk that the airplane would be hijacked. Avoidance whitethorn seem the answer to all risks, However, avoiding risks also nub losing out on the possible gain that accepting (retaining) the risk may have allowed. An organization that does not enter a business to avoid the risk(Strickland, 1999) of qualifying also avoids the possibility of earning profits. Avoidance is a good risk management technique. Modification - Modification(Wheelen, 1996) is be clearly defined as changing an activity to obligate it safer for all involved. Many policies and procedures can be made as examples of risk modification. For example, an organization that is ver y concerned about the risk of using unsafe drivers may include an additional DMV record check to its current screening process. Also, an annual road test for all drivers can now be implemented compulsorily. For clarity, an organization that is also concerned about the lack of male and female chaperones for an overnight camping trip could modify its policies and procedures by modifying the night camp activities into hosting a day-long clutch hike and picnic instead. The night male only shift guards in the company project(Papows, 2002) could be modified to an male and female shift status because thither are female night shift employees working the graveyard hours. Modification is good if it improves project performance.Retention - Retention could be done on two areas. The archetypical area is by retention of project design(Campbell, 1998). For example, a project manager may decide that the implementation of a vernal project process with the new techniques arent as suitable as the o riginal project process design because the new process will cause