Case Study 01 P2 Industries recons the need for effective risk management, given the fast pace in telecom sector. Company spends 20% of its revenue in R&D though industry benchmark is 15%. Still small percentage of projects, which reach the commercialization stage, are able to recover the R&D costs. Management attribute the problem to lack of effective risk management. Meeting: PM: I have researched the risk management practices of our competitors and based on my research, I have been able to develop a risk management templates, which we can use in our company Sponsor. I have looked at the template. You have used the words and expressions which are not used in P2. Do we have to change the way we manage the projects to use these templates? Does this mean that we have to make major nges to our risk management methodology? PM: I am of the view to use these templates in existing format. If other companies are using it, we can use them too, given the similarities between our businesses. Also, I have been able to obtain the probability distributions used by those companies, which we can use as it is Sponsor: Should not we modify the templates based on our processes and project life cycle phases? Should not the distributions be validated and calibrated based on our company data and standards? PM: I understand your reservations. But I do not think this will be an issue. I would like to use these templates in the next project as test case. If everything goes well, this will be TM. I understand your reservations. BUT o not think OS Wir be an issue. I would like to use these templates in the next project as test case. If everything goes well, this will be equivalent to validation of templates. Sponsor: I need to think about it bit more. I am not sure if we should introduce them before training our employees. Questions: 1. Can the templates be used from one company as it is? Or one should modify them before adopting them. 2. Can probability distributions be used from one company as it is? If yes, under what conditions? If no, how can one develop the probability distributions? 3. What do you understand by the term 'validation in context of the discussion? 4. Assume that one of the template adopted by PM is RAM (Risk Assessment Matrix). How will you validate it for P2? (Give general approach) 5. Can employee start using the templates without some kind of formal training