MGMT312 In Class Seminar Activity

Individual Submission
Chapters/Topic Chapter 9 Risk
Student Name Student Number Program Section / Group #
Balaji Gopi 10322422 SCM 2

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1. Risk response plans and contingency plans are often misunderstood. What
is the difference between these two risk management concepts?

The main difference between the two concepts is the risk identifying and
analyzing. Risk response identifies the risk and prevents even before they occur
and it can even avoid risk and also risk mitigation. On the other hand
contingency planning is preparing the steps and solutions if the risk occurs,
especially for the high impact risk like disasters. It also improves the chance of
surviving the risk that may not have been prevented through risk management.

2. What is the difference between risk avoidance and risk mitigation

response strategies? Provide 2 examples.

Risk Avoidance: Risk avoidance is removing oneself from any situation where
there is a chance of suffering losses. For instance, a shareholder who steers
clear of oil equities because of declining prices and related risks forfeits possible
profits but hedges against losses.

Risk mitigation is the process of taking preventative action to lessen the

possibility and impact of future losses. For example, an investor might lessen
the impact of possible losses from oil stocks by diversifying their portfolio to
balance risks by holding oil companies while investing in other industries.

Example for Risk Avoidance:

Adopting to technology: To reduce the danger of malfunctions or data
breaches, a business may choose to use old technology rather than a fresh,
unproven one. Even if the more recent technology could provide novel features
or save money, the company might decide to continue with the more
dependable, older technology instead of taking the associated risks.

Example for Risk mitigation:

 Modifying Work Culture: Putting safety and risk awareness first in the
organization's culture helps lower the likelihood of mistakes or carelessness,
improving risk management all over the company

3. Identify 4 risks associated with the Comprehensive Project you have

chosen and their possible risk response plans.

Weather risk:

Risk: Tobermory's unpredictable weather might make it difficult to enjoy outdoor

activities and the trip as a whole.
Risk Response Plan: Have backup indoor activities or other arrangements, and pay
special attention to weather forecasts in the days leading up to the trip. To reduce
monetary losses, think about getting cancellation insurance for outdoor activities.

Accommodation risk:

Risk: The group could not have a place to stay if there are last-minute cancellations
or unforeseen problems with the Airbnb reservation.
Risk Reaction Strategy: Make sure you have the Airbnb host's contact details and
confirm the reservation well in advance. As a backup, look for rooms close by. Think
about making a backup reservation with accommodating cancellation terms.

Problems with Transportation:

Risk: Unexpected transit issues or car breakdowns during the four-hour drive might
cause the trip to be disrupted.
Risk Response Strategy: Make sure both vehicles are thoroughly inspected prior to
the journey. Keep the number for your neighborhood tow company handy, and
think about getting a roadside assistance package. Another way to reduce the
number of cars and possible problems is to carpool.

Group Behavior:

Risk: Tension may arise from disagreements or differences in preferences within the
group, which might affect the entire experience.
Risk Response Strategy: Encourage candid discussion about preferences and
expectations prior to the trip. Invite the group to take part in the planning phase
and think about big actions involving democratic decision-making. Establish
procedures for resolving disputes in order to handle any problems that could come
up while traveling.

4. Describe the problems that may occur during your Comprehensive

Project if communications are not planned in advance.

Issues with communication:

Several issues might arise if communications for the Comprehensive

Project are not scheduled in advance:

Inaccurate or Insufficient Information:

Inadequate communication preparation can prevent group members from

learning important details about the trip, which could cause
miscommunication, confusion, or lost opportunities.
Conflicts in Scheduling:

Group members may have conflicting expectations about departure

timings, activity schedules, and return plans as a result of poor
communication.
Unfulfilled Expectations:

A lack of communication on personal preferences, interests, and

expectations can lead to dissatisfaction among group members over the
selected activities or the overall trip experience.
Making Decisions Is Hard:

Decision-making during the journey might become chaotic without

organized communication, which could cause delays or arguments
between group members.