Quantitative Derivatives and Risk Management †MyAssignmenthelp

Question: Discuss about the Quantitative Derivatives and Risk Management. Answer: Introduction Risk Management is one of the most crucial tools that help in risk identification, development of plan, and reduction of the impact on the risk factors on the project (Lam 2014). The project of Website development for Car Rental is largely influenced by the people involved in the project. Hence the impact of the people on the activities of the project is also very huge. The implication of the risk management would help in identifying the probability of the occurrence of the risk factors on the project that could be raised due to the people involved in the project. The major risk factors due to people that can have an impact on the operations of the project are absence of skilled staff, problem in recruitment, medical issues in the staff, and absence of training for the staff (McNeil, Frey and Embrechts 2015). The factors of risk would cause the major issues in the obligations of the project successfully. The use of the risk management would provide the option for the development of the successive and integrated communication management. The development of the operations was supported by the implication of the operations for development and integration of the operations that are required for the integration of the effective operations. The risk assessment for the project of Website Development for Car Rental is done for analyzing the various risks of the project along with the type of the risk (Glendon, Clarke and McKenna 2016). The risks identified in the project were absence of skilled staff, problem in recruitment, medical issues in the staff, and absence of training for the staff due to the people involved in the project. The types of the risk are dependent on the procurement of the operations of the project and the formation of the successive development operations (Chance and Brooks 2015). The analysis of the factors of the risk would help in listing the operational development of the risk associated with the development of the operational risk assessment. The risk is highly dependent on the people associated with the project. The implication of the successive project integration plan had resulted in forming the development of the improved operations (Wolke 2017). The nonattendance of talented staff is the significant issue of the task as the entire undertaking is about advancement of the site and the nonappearance of the gifted labourers would bring about hurting the activities. The issue in enlistment would bring about framing the significant issues in the consummation of the undertaking. The issues identified with the restorative foundation of the staff would likewise bring about framing the issues in the fruition of the task (Bessis 2015). The nonappearance of preparing offices of the staff would bring about shaping real issue in the task of site advancement of auto rental. Risk assessment S. No. Risk Factor Description Probability Severity Rating Mitigation 1 Absence of skilled staff The absence of skilled staff is the major problem of the project as the complete project is about development of the website and the absence of the skilled workers would result in harming the operations. Medium High High External Staff should be included 2 Problem in recruitment The problem in recruitment would result in forming the major issues in the completion of the project High Low Medium Proper Recruitment method should be used 3 Medical issues among staff The issues related to the medical background of the staff would also result in forming the issues in the completion of the project Medium Low Low Proper Treatment and leave allowance should be given 4 Absence of training for the staff The absence of training facilities of the staff would result in forming major issue in the project of website development of car rental Low High Medium Advanced training methods should be used for ensuring that the staff are trained effectively Risk Priority Matrix Probability Severity Low Medium High Low Medical issues among staff Problem in recruitment Medium High Absence of training for the staff Absence of skilled staff Risk Control Risk control can be implied with the help of implementation of the mitigation strategies listed in the previous section of risk assessment (Hopkin 2017). The control of the risk factors would be done by the help of control implementation process. The steps of control implementation process are given below, It is the first step of implementation of the risk control as the factors of risk would be analysed for making the control plan that would be followed for implementing the improved risk control plan for the project. The strategies like external staff should be included, proper recruitment method should be used, proper treatment and leave allowance should be given, and advanced training methods should be used for ensuring that the staffs is trained effectively should be developed. These strategies form the basis of the implementation of the risk control processes. The deployment of the effective strategies would help in decreasing the probability of errors in completing the project. The developed strategies are prioritized and implemented for listing the deployment of the successive and developed operation model. The implementation of the strategies is helpful for ensuring that the project is implemented and the factors of risk are negated. The various risk factors for the project and their impact on the project schedule is given below, Risk Factors Impact on project schedule Absence of skilled staff The absence of skilled staff would result in forming the major issues in the development of the final project deliverable. Problem in recruitment The recruitment issues would tend to result in lacking the project with expertise professionals that are able to do the task successfully. Medical issues among staff The medical issues would tend to delay the operations of the project as the workers would not be able to work in the stipulated time Absence of training for the staff The absence of staff training would tend to result in causing the major setback for the workers and professionals. References Bessis, J., 2015. Risk management in banking. John Wiley Sons. Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management: Review, critique, and research directions. Long range planning, 48(4), pp.265-276. Chance, D.M. and Brooks, R., 2015. Introduction to derivatives and risk management. Cengage Learning. Glendon, A.I., Clarke, S. and McKenna, E., 2016. Human safety and risk management. Crc Press. Hopkin, P., 2017. Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers. Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley Sons. McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts, techniques and tools. Princeton university press. Wolke, T., 2017. Risk Management. Walter de Gruyter GmbH Co KG.