Week 10 (PROJECT RISK MANAGEMENT)

Question 1

Risk and uncertainty continuum

Answer 1

• High Risk – Low Risk
• Project Work – Production Line
• High Change – Little Change
• Control High – Control Low

Question 2

Define Objectives

Answer 2

The project’s objectives are defined by the project charter, the project plan and the individual plans

Question 3

Risk Identification (Why Projects Fail)

Answer 3

Risk identification identifies areas of risk, uncertainty and constraints, which might impact on the project and limit or prevent the project from achieving its stated objectives.

Question 4

Risk Quantification (Impact/Frequency)

Answer 4

Quantifying risks evaluates the risks, prioritizes the level of risk and uncertainty, quantifies the frequency of the risks occurring and the level of impact on the stated objectives.

Question 5

Risk Response

Answer 5

Response development defines how the project will respond to the identified risks, which could be a combination of elimination, mitigation, deflection or acceptance.

Question 6

Risk Control

Answer 6

The risk control function implements the risk management plan. This might involve in-house training and communication to the other stakeholders.

Question 7

Business Case

Answer 7

Outlines a course of action to address corporate requirements.

Question 8

Project Charter

Answer 8

Translates the business plan into requirements at the project level.

Question 9

Project Plan

Answer 9

Integrates all the individual plans to produce an optimum baseline plan.

Question 10

Project Management System

Answer 10

Some objective do not relate directly to a deliverable but how the project is managed through the PM system.

Question 11

Project Sponsor

Answer 11

There is no project sponsor linking the project to the company’s strategic need therefore, the company runs the risk of making a project that is not able to realize benefits for the company.

Question 12

Project Organization

Answer 12

There is no project organisation structure therefore, the company runs the risk of functional manager prioritizing the allocation of resources for the depts.

Question 13

Project Manager

Answer 13

There is no project manager with the single point of responsibility, therefore, the company runs the risk of no one coordinating the work as the project moves from one dept to another.

Question 14

Project Team

Answer 14

There is no project manager or team leader managing and leading the project team.

Question 15

Project Office

Answer 15

There is no project office or central point to being all the project participants together

Question 16

Too Much Innovation

Answer 16

In practice, a project with too many untried and tested components runs the risk of teething problems.

Question 17

Too Little Innovation

Answer 17

Market opportunities not considered resulting in too little design
therefore, there’s a risk of producing a project that is obsolete.

Question 18

Operators

Answer 18

The users are not involved in the design process therefore, the
company runs a risk of the company building a facility that is
difficult to operate.

Question 19

Stakeholders

Answer 19

Are not identified resulting in their needs and expectations not
being considered

Question 20

Configuration

Answer 20

The configuration between the components (deliverables) and
existing facilities are not considered

Question 21

Prototypes

Answer 21

The project is built before a functioning prototype or model is fully tested therefore, it runs a risk of expensive reworks and retrofitting.

Question 22

Build-Method

Answer 22

Not fully developed before the execution phase, therefore, it runs the risk of working becoming boxed-in resulting in expensive rework and delays.

Question 23

Scope Definition

Answer 23

If the scope is not defined the company runs a risk of the PM being unsure and confused as to what needs to be included or excluded.

Question 24

Scope Change

Answer 24

If there is no scope change control system, the company runs the risk of uncontrolled scope creep.

Question 25

Cost

Answer 25

The project budget is not clearly defined there is a risk of
uncontrolled expenses.

Question 26

Cash Flow

Answer 26

If cashflows are not forecasted there are risks of negative cashflows.

Question 27

Time (Critical path)

Answer 27

If the time (critical path) is not established there is a risk of
performing non-critical work.

Question 28

Procurement

Answer 28

Project procurement requirements are not planned there is a
risk of long lead times not being identified.

Question 29

Resources

Answer 29

A resource histogram of resource loadings are not produced,
the company runs the risk of not having sufficient resources to
complete the project as per the schedule.

Question 30

Project Control

Answer 30

If there is no project control being carried out the PM will have
to rely on intuition to know where best to allocate the resources.

Question 31

Quality

Answer 31

There is a risk when the quality requirements are not adhered to

Question 32

Communication

Answer 32

There is a risk if no communication management requirements are not adhered to.

Question 33

Document Control

Answer 33

There is a risk when the document control requirements are not considered.

Question 34

Project Meetings

Answer 34

Should the project meetings not be considered the company runs a risk as there will be no minutes.

Question 35

Quantitative Risk Assessment

Answer 35

Using various statistical techniques to evaluate risks.

Question 36

Qualitative Risk Assessment

Answer 36

Using educated opinions and expert judgements.

Question 37

Frequency of Risk

Answer 37

The frequency and likelihood of a risk occurring needs to be considered.

Question 38

Priority

Answer 38

To prioritize the risks which could possibly threaten a project’s completion or deadlines.

Question 39

RISK RESPONSE

Answer 39

Eliminate Risk= Looks at avoiding risks completely.
Mitigate Risk= Reducing the risk’s probabilities.
Deflect Risk= Deflecting the risk in full or in part to another party.
Accept Risk (with Contingency)= Accepting risk with a contingency plan.
Turn Risk into Opportunity= Identify opportunities from risks identified

Question 40

RISK CONTROL

Answer 40

• Set Up Risk Control Sheet
• Progress Meetings
• Identify Risk
• Agree Response
• Monitor
• Lessons Learned