Risk Identification Scenarios and Paper 1

Risk Identification Scenarios

CPMGT/302 - Procurement and Risk Management

Risk Identification Scenarios

The identification of risk normally starts after the risk management planning. This is our updated risk identification framework in which a risk is identified. This paper represents risk identification scenarios with risk mitigation methods for Construction Company (scenario 2).

Methods for Risk Identification:

Once we have a clear picture of our business, we can begin to identify the risks. There are several techniques in identifying risk for Construction Company (scenario 2). The following methods will be used to assist in the identification of risks associated with Risk Management Plan for Construction Company:

* Brainstorming

* Scenario analysis

Brainstorming: Brainstorming is the favorite method because you have the chance work with different individuals in the organization to give you diverse point of views. The goal of brainstorming is to make sure every potential risk in cover, without making judgment about their significance in the initial phase. A person in charge will brief the team on the purpose of the brainstorming session and the proposed outcome. Members of the brainstorming team should be familiar with the issues regarding risk (Crouhy, et al., 2000).

In Construction Company brainstorming is performed with different people, such as your executive managers, accountant, financial adviser, and other staff members, who will help to get many different perspectives on risks. An advantage of this technique in this scenario is that it offers a great deal of opportunities for a person to analyze, and a disadvantage of this technique is that there is a chance of recognizing so many risks that too much time can be used on evaluating and categorizing them (Frenkel, M., et.al, 2005).

Construction Company can use the information obtained from the brainstorming techniques to resolve the problem...