Project Risk Management Essay Example | Topics and Well Written Essays - 250 words - 7

Project Risk Management - Essay Example ting because there are number of inputs into the sample model that are unknown and one technique is to obtain the approximate estimate for each input. The Monte Carlo models and methods use the probability distribution of the inputs and generated random inputs. On the contrary, if the approach used is the probability distribution rather than using the best single estimate or the inputs, it is not that easy and often simply impossible (Pietersz, 2011, n.p.) Risk Assessment Process is defined as the process in which businesses, companies and organizations focus on vital and serious areas of concern and prioritize resources in order to maximize the response and recovery efforts (Michigan State University, 2004, n.p.). In addition, risk management plan will not be more effective and complete if risk response strategies are not suitable in developing the mitigating risks (Ahmed, Azhar & Panthi, 2007, n.p.). The risk response matrix grid is populated by a (+) and a (-) signs because it is very useful in making and finalizing a certain decisions. The Grid Analysis (+) sign describes the number of good or positive alternatives to select from and other factors to consider while the (-) sign is not clear and preferred another option to choose from (Manktelow, 2011, n.p.). Thus, I would prefer to use the Monte Carlo Method as it helps a lot in solving mathematical problems in a fast and easy manner. The (+) and (-) signs that are used in Risk Response Matrix contributes in making decisions confidently, clusters the good ideas from bad ones and lesser the time required when people are struggling to make decision. Ahmed, S.M., Azhar, S. & Panthi K. (2007). Risk Matrix as a Guide to Develop Risk Response Strategies, n.p. Retrieved on December 9, 2011 from http://ascpro0.ascweb.org/archives/cd/2007/paper/CPRT145002007.pdf. Michigan State University: School of Criminal Justice. (2004, February 25). Risk Assessment Matrix (RAM) Process (n.p.). Retrieved on December 9, 2011 from