Detail one of the elements of portfolio risk management framework (PMBOK Guide, Chapter 8.4: Key Planning Elements) and provide an example of this element being used for Portfolio Planning and Risk Management.
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Title: Risk Tolerance: A Crucial Element of Portfolio Risk Management Framework
Introduction
Portfolio risk management is a critical component of project management practices, aimed at identifying, assessing, and mitigating risks that may impact the success of a portfolio. One key planning element highlighted in the PMBOK Guide is risk tolerance, which refers to the organization’s or stakeholders’ willingness to bear risk in pursuit of strategic objectives. In this essay, we will delve into the concept of risk tolerance as an essential element of portfolio risk management and explore its application in portfolio planning and risk management.
Thesis Statement
Risk tolerance plays a pivotal role in portfolio risk management by guiding decision-making, setting risk parameters, and aligning risk management strategies with organizational objectives to optimize portfolio performance.
Understanding Risk Tolerance
Risk tolerance represents the level of uncertainty or variability that an organization, project sponsor, or stakeholder is willing to accept in pursuit of its strategic goals. It reflects the organization’s appetite for risk and its capacity to withstand potential losses or adverse outcomes associated with portfolio investments. By defining risk tolerance levels, organizations can establish boundaries for risk-taking activities and inform decision-making processes within the portfolio management framework.
Application of Risk Tolerance in Portfolio Planning and Risk Management
Example Scenario:
An investment firm is planning to diversify its portfolio by adding new asset classes such as emerging market equities, real estate investment trusts (REITs), and commodities. As part of the portfolio planning process, the firm’s senior management conducts a risk assessment to evaluate the potential impact of adding these new assets on the overall portfolio risk profile.
Utilizing Risk Tolerance:
1. Risk Identification: The firm identifies various risks associated with each asset class, including market volatility, geopolitical factors, economic conditions, and regulatory changes. By understanding the potential risks, the firm can assess their alignment with the organization’s risk tolerance levels.
2. Risk Assessment: The firm evaluates the expected returns and risks of each asset class based on historical data, market trends, and expert analysis. By quantifying the risks and potential rewards, the firm can determine whether the proposed investments fall within acceptable risk tolerance thresholds.
3. Risk Mitigation Strategies: Based on the assessment results, the firm develops risk mitigation strategies to manage and monitor the identified risks effectively. This may involve setting risk limits, implementing hedging techniques, diversifying investments, or adjusting asset allocations to align with risk tolerance levels.
4. Decision-Making: With a clear understanding of risk tolerance and its implications on portfolio performance, the firm’s senior management makes informed decisions about incorporating new asset classes into the portfolio. They ensure that the selected investments align with the organization’s risk appetite and strategic objectives while optimizing risk-return tradeoffs for sustainable growth.
Conclusion
Risk tolerance serves as a guiding principle in portfolio risk management, helping organizations establish risk parameters, make informed decisions, and align risk management strategies with strategic objectives. By incorporating risk tolerance into portfolio planning processes, organizations can effectively manage risks, optimize portfolio performance, and achieve their desired outcomes while navigating uncertainties in dynamic market environments. Embracing risk tolerance as a fundamental element of portfolio risk management enables organizations to strike a balance between risk-taking and risk aversion, fostering resilience and sustainability in their portfolios.
