Qualitative Risk Assessment Measures in Eskom Holdings Ltd.'s Case Study

The Recovery Plan Project Case
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The Recovery Plan Project Case
Introduction
Project risks can be theorized as uncertain conditions or events that, when they happen, could have adverse and positive implications on the project goals, including its cost, quality, scope, and schedules. Any project risk management endeavor is tailored to identify and minimize the risks’ implications on the specific project. Nevertheless, project risk management endeavors potentiate challenges related to the uncertain nature of the risks. In the particular case study, the authors appraise the risk management practices of a utility firm (Eskom Holdings Ltd) to establish its recovery plan project geared at addressing the vulnerabilities related to power outages or disruptions emanating from supply shortfall and rising electricity demands. This paper identifies and discusses the risk quantification techniques centered on the PMBOK Guide, describes and evaluates the qualitative risk assessment approaches employed in the case study project, as well as discusses and evaluates the procedures taken for risk assessment and subsequent quantification.
Risk Quantification Methods
The PMBOK offers five methods that might be employed in risk quantification endeavors. These include expert opinion, statistical sums, expected monetary value (EMV), Monte Carlo simulation or analysis, and decision trees. In expert opinion, risks are quantified centered on senior executives’ or experts’ experiences and insights. One practical approach to utilizing expert opinion entails conducting risk evaluation workshops where different experts deliberate and subsequently assign values to the established risks. Statistical sums are a quantification approach that entails calculating the cost estimate of the respective risks and then utilizing the outcomes to compute the entire project range utilizing statistical probability distribution. The different project costs’ range might help quantify the comparative risks of the alternative project funding. The EMV refers to the product of two integers, the probability value of the risks, and the risk even value estimated of gain or loss that would be incurred when the risk event transpires. Monte Carlo simulation and analysis is a quantification technique that entails quantifying in the management of projects. This strategy is increasingly helpful when establishing the potential results of the decisions. It also evaluates the risk implication, which is vital in decision-making spheres. Lastly, a decision treat constitutes a tool that leverages tree-like graphs or decision models and their corresponding implications to quantify the vulnerabilities and make effective decisions in uncertain contexts during project implementation.
Qualitative Risk Assessment Measures in the Case Study Project
A qualitative risk assessment technique was employed in the Recovery Plan project centered on the Recovery Plan team’s expertise and the lessons derived from previous trivial crisis programs. The project ...