BUS $6590$ Winter $2024$

$2^{nd}$ In$-$Class Assignment

$2$

PM:

"All of these risk events can and will impact the final product's design. We must be sure we select the right design at the lowest risk. Unfortunately, our project management methodology does not provide guidance on developing a risk management plan. Perhaps it should."

Sponsor:

"I see no reason for an in$-$depth analysis of $100$ or so risk events. That's too many. Where are the probabilities and expected ourcomes or damages?"

PM:

$"$My team will not assign probabilities or damages until we get closer to prototype development. Some of these risk events may go away altogether."

Sponsor:

"Why spend all of this time and money on risk identification if the risks can go away next month? You've spent too much money doing this. If you spend the same amount of money on all of the risk management steps, we'll be way over budget."

PM:

$"$We haven't looked at the other risk management steps yet, but I believe all of the remaining steps will require less than $10\%$ of the budget we used for risk identification. We'll stay on budget."

Questions

a$)$ Was the document given to the sponsor a risk management plan?

b$)$ Did the project manager actually perform effective risk management?

c$)$ Was the time and money spent identifying the risk events appropriate?

d$)$ Should one step be allowed to "dominate" the entire risk management process?

e$)$ Are there any significant benefits to the amount of work already done for$-$risk identification?

f$)$ Should the $100$ or so risk events identified have been categorized? If so$,$ how?

g$)$ Can probabilities of occurrence and expected outcomes $($ie$.,$ damage$)$ be accurately assigned to $100$ risk events?

h$)$ Should a project management methodology provide guidance for the development of a risk management plan?

i$)$ Given the life$-$cycle phases in the case study, in which phase would it be appropriate to identify the risk management plan?

j$)$ What are your feelings on the project manager's comments that he must wait until the prototyping phase to assign probabilities and outcomes?