Qualitative Analysis For This Part Of The Assignment You Can ✓ Solved
Qualitative Analysisfor This Part Of The Assignment You Can Use The W
For this part of the assignment, you can use the work you performed last week. Take the seven identified risks and organize them into a spreadsheet. Conduct a qualitative assessment by evaluating the probability and impact of each risk, considering the geographical location relevant to last week’s assignment. Use the following format for each risk:
- Category
- Probability (0.0-1.0)
- Impact (0-100)
- Risk Level (Probability x Impact)
- Description
For example:
Zombies … 0.8 Zombie Apocalypse causes widespread panic and physical security threats to staff, property, and business operations.
Sample Paper For Above instruction
Introduction
Risk management is a vital component of organizational planning, especially when dealing with unpredictable threats that can significantly impact operations. Conducting a qualitative risk analysis allows organizations to evaluate potential risks based on their probability of occurrence and the severity of their impact. This paper demonstrates how to perform a qualitative analysis for seven risks identified in a previous assignment, considering the geographical location's influence on the risk factors. The analysis utilizes a systematic approach to evaluate each risk's probability, impact, and overall risk level, providing a comprehensive understanding crucial for developing effective mitigation strategies.
Methodology
The methodology involves reviewing the risks identified earlier and assigning qualitative scores to their probability and impact. These scores are based on the risk’s nature, historical data, and geographical factors that could influence their occurrence. Using the predefined scale (probability from 0.0 to 1.0 and impact from 0 to 100), the risks are analyzed, and their risk levels are calculated as the product of probability and impact (P x I). This process aids in prioritizing risks based on their potential severity.
Risk Assessment
Risk 1: Zombie Apocalypse
Category: Physical Security Threat
Probability: 0.8
Impact: 90
Risk Level: 72
Description: The simulation of a zombie apocalypse scenario indicates a high probability of causing widespread panic and physical security threats to staff, property, and business operations. The geographical location influences the risk based on urban density and existing security measures.
Risk 2: Cyber Attack
Category: Cybersecurity
Probability: 0.6
Impact: 80
Risk Level: 48
Description: A cyberattack remains a significant threat across all geographical regions, particularly in areas with high digital connectivity. Its impact can disrupt business operations and compromise sensitive data.
Risk 3: Natural Disaster
Category: Environmental
Probability: 0.5
Impact: 100
Risk Level: 50
Description: The likelihood of natural disasters such as floods or earthquakes varies by geographical location. The impact is severe, potentially causing extensive damage to infrastructure and operations.
Risk 4: Supply Chain Disruption
Category: Operational
Probability: 0.4
Impact: 70
Risk Level: 28
Description: Disruptions in the supply chain can occur due to geopolitical issues or natural events, significantly affecting operational continuity, especially in regions heavily dependent on imports.
Risk 5: Pandemic
Category: Health and Safety
Probability: 0.7
Impact: 85
Risk Level: 59.5
Description: Based on current global trends, pandemics pose a high risk that can impair workforce availability and operational capacity, influenced by regional healthcare systems.
Risk 6: Political Instability
Category: Political
Probability: 0.3
Impact: 60
Risk Level: 18
Description: Political instability can lead to operational disruptions, especially in regions with recent civil unrest or governance issues.
Risk 7: Technological Obsolescence
Category: Technology
Probability: 0.5
Impact: 65
Risk Level: 32.5
Description: Rapid technological changes threaten operational relevance, especially in regions where technological adoption is slower.
Analysis and Discussion
The qualitative analysis highlights which risks require prioritized attention based on their risk levels. The highest risk involves scenarios like zombie apocalypse simulations and pandemics, which could critically impede operations. Environmental hazards such as natural disasters also pose significant threats, requiring contingency planning accordingly. Conversely, risks with lower risk levels such as political instability and supply chain disruption, while still important, may be de-prioritized depending on regional assessments.
Conclusion
Performing a qualitative risk assessment allows organizations to spatially and contextually evaluate potential threats based on probability and impact. Utilizing this approach enhances strategic planning, ensuring resource allocation aligns with the severity and likelihood of risks. Tailoring risk mitigation strategies to specific geographical factors optimizes resilience and operational continuity in an uncertain world.
References
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- ISO 31000:2018. Risk management — Guidelines. International Organization for Standardization.
- Kaplan, R. S., & Mikes, A. (2012). Managing Risks: A New Framework. Harvard Business Review.
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- Fraser, J., & Simkins, B. (2010). Enterprise Risk Management: Today's Leading Research and Best Practices for Tomorrow's Executives. Wiley.
- Lam, J. (2014). Enterprise Risk Management: From Incentives to Controls. Wiley.
- Jorion, P. (2007). Value at Risk: The New Benchmark for Controlling Derivatives Risk. McGraw-Hill.
- Vose, D. (2008). Risk Analysis: A Quantitative Guide. Wiley.
- Total Quality Management (TQM) in Risk Management, 2015. Journal of Risk Analysis.
- Hubbard, D. (2009). The failure of risk management: Why it's broken and how to fix it. Wiley.