| Why use a workshop methodology? | • No one in the project team knows ALL the possible
implementation hazards, risks, likelihood or consequences.
• No one in the project team knows ALL the operational hazards, risks likelihood or consequences.
• No one in the project team knows ALL the third party hazards, risks likelihood or consequences. |
| What actions should you take as phase 1 (pre-risk workshop) of a risk analysis workshop? | •Develop your relationship with attendees as early as possible.
•Fully understand the key objectives of the risk workshop.
•Brief yourself with existing information including Risk Management Policy, Framework, Guideline, Risk Register,
•Through your meetings/conversations with individuals try to capture some risks and opportunities and their expectation of this exercise.
•Consolidate all captured information into the Risk Register and then share it with everyone prior
to the workshop.
•Identify and plan for potential attendees with dominant personality.
•Be aware and plan for risk of group thinking
•Arrange for having a proper room for workshop
•Number of attendees (10-15) |
| What actions should you take as phase 2 (during risk workshop) of a risk analysis workshop? | •Have a short presentation for project scope, its current status, risk management process, project specific requirements, objectives of the workshop, agenda,
•Focus on top risks first then low risks
•Use available time during workshop for risk identification and high level analysis.
•Differentiate between “Issues” and “Risks”. |
| What actions should you take as phase 3 (post risk workshop) of a risk analysis workshop? | •Have follow up sessions with individuals after the workshop as early as possible.
•Discuss, evaluate and further develop the Risk Register then communicate it with the whole team
•Circulate the updated Risk Register to everyone for review and comment |
| What does making a trade-off mean? | A trade-off is a situation in which you accept something you do not like or want in order to have something that you want.
A trade-off is a balance achieved between two desirable but
incompatible features; a compromise. 'a trade-off between objectivity and relevance'. |
| Who determines what is a reasonably practicable trade-off? | The Risk Owner will make the trade-off recommendation on behalf of:
o The Project Owner (an individual or a corporation), if it is a “private” project.
o The delegated “Project Owner”, if it is a public or community-owned project.
o In all cases the Risk Owner will consult with selected stakeholders in the project to ensure that there is general support for the proposed trade-off.
o These stakeholders may include a Regulator (such as for an
environmental risk); a finance company and/or insurer for a
commercial trade-off. |
| What are tolerable risks? | • Risks that society is willing to live with so as to secure certain benefits;
• Risks that society does not regard as negligible (broadly acceptable) or something it might ignore;
• Risks that society is confident are being properly managed by the owner; and
• Risks that the owner keeps under review and reduces still further if and as practicable |
| What are advantages of qualitative risk analysis? | • Is relatively quick and easy
• Provides rich information in addition to financial impacts such as health & safety and reputation
• Is well understood by employees who may not be trained in
quantitative techniques |
| What are disadvatanges of qualitative risk analysis? | • Gives limited difference between levels of risk
• Is imprecise – risk in the same risk rating can represent very different amounts of risks
• Cannot numerically integrate and address risk interactions
• Provides limited ability to perform cost-benefit analysis |
| What are the advantages of quantitative risk analysis? | • Allows numerical integration
• Permits cost-benefit analysis of risk response options
• Enables risk-based capital allocation to business activities |
| What are the disadvantages of quantitative risk analysis | • Can be time-consuming and costly especially during model development
• May overlook qualitative impacts as it requires units of measure
• May imply greater precision than the uncertainty of inputs warrant
• Working and assumptions may not be apparent |
| Give examples of quantitative risk analysis techniques. | • Decision Tree Analysis
• Expected Monetary Value (EMV)
• Monte Carlo Analysis
• Sensitivity Analysis
• Modelling and Simulation
• Multi-criteria Analysis |
