Imagine that you work for U$.$S$.$ Industries, Inc. as a network administrator. Your company has just won a contract with a large HR firm and you have been given the responsibility to expand their existing network to support operations in their newly launched EU operations center. If you are successful this will be a feather in your cap as well as a boost to the reputation of your company.

You have just left a four$-$hour meeting in which you described the network expansion project to your colleagues. You explained the architecture, new enterprise$-$level firewall, the additional requirements for network monitoring, the need for an additional system administrator, and the risks of failure of your own firm $($U$.$S$.$ Industries$)$ to comply with all relevant regulations.

The project is expected to have a total cost of $$5$ million USD to bring it to full operation in approximately six months. Your tasks in this project are to develop, test, and bring into production a network with these requirements in a short time frame.

This project, if executed properly, is likely to have an annual income of $$35$ million USD for your company. This income is a $35\%$ premium to other sources of income, amounting to $$100$ million USD, that your company is expected to have in the current year.

Based on the service level agreement, service delivery requirements are expected to be on time and within the specified quality parameters of $+/1\mathrm{.}5\%$ of the time with deliveries scheduled for alternating Monday afternoons. For each month the project is late, a $5\%$ reduction per month in the overall contract price will be levied on your company. If this reduction reaches $20\%,$ the contract will be transferred to the second runner$-$up in the bidding process.

For this portion of the exam:

Estimate the qualitative and quantitative risks of bringing the project to completion:

On time

One month early

Two months late

Estimate the qualitative and quantitative risks of bringing the project to completion:

On time, but not with the required security

One month early with the required security requirements

Two months late, without the required security requirements

Estimate the qualitative and quantitative risks of bringing the project to completion on time, with the required security requirements, within$/$on budget, but not meeting the required contractual commitment for service.