Risk Management in Panama Canal - Essay Example

Risk management on various business risks in Panama Canal is important to potential and current investors in Panama. This paper will examineseveral risks that may occur and different ways through which one can manage these risks. In the management of risks, it is important to carry out risk analysis in the area. Risk analysis refers to the techniques employed by individuals, businesses, organizations and government agencies to identify and evaluate factors hindering achievement of objectives and project success.

The papers highlights different risk analysis techniques that are applicable in analyzing risk, in Panama Canal. Risk analysis techniques used in forecasting are categorized in either qualitative or quantitative methods. Qualitative techniques base their finds and conclusions on opinions and feelings of individuals. These include opinions and judgments of experts, consumers or scholars. Quantitative methods of risk analysis are based on numerical records over in the period. Quantitative analysis of different categories of project requirement and resources are recorded in the paper.

The analysis includes mean, standard deviation and mean of all categories of resources, possible risks, costs, and conditions necessary for the Panama Canal project. The paper comprises of different steps and procedures taken in the development of the Panama Canal as highlighted by Kendrick (2006). Identification of the work and deliverables was the first step carried out in Panama Canal. Secondly, there was the organization of project work and clear determination of work breakdown structure on the Panama Canal project.

Most of Stevens’s effects were utilized in the preparation of the initial work on the canal. Work breakdown structure is then decomposed into lower-level components that would be functional. These components are assigned identification codes. Lastly, examination of decomposition is carried out to assess whether the decomposed components are complete and clear.