Step 2 Step 3 7.2 (30 pts.) During the Engineering and Manufacturing Development Phase, the estimated Profit and Risk components for developing the software is as follow: - Estimated Profit: $75M - Pf = Rp = 0.75, software failure - Cf = $140M (cost of failure) Opportunities to reduce the risk level: A. Implement the following three sequential steps will reduce Pf to 0.1 but required $10M investment Step 1: Train engineering team - Add two months buffer to schedule, and required 3 months to reduce the risk level (RL) from 0.75 to 0.5 Step 2: Develop rigor software development processes and tools;required 4 months to reduce RL from 0.5 to - Conduct process review and walkthrough. Step 3: Improve software integration test and software release process/method: required 3 months to reduce RL from 0.3 to 0.1 - create a 2 persons team with budget to manage and retire this risk within 2.5 months. B. Add verification & validation processes to verify and validate the software, included bringing industrial SMEs, will reduce Pf to 0.075: required $21.5M and four mitigation Steps. Q.7.4. Use the embedded risk mitigation waterfall template below to illustrate your risk level reduction plan for your selected option (copy and paste your complete waterfall in this document - Please DO NOT embed the PPT object) 07 - Risk Mitigation Plan Template.pptx Q.7.5. Based on the mitigation descriptions under option A, place the correct mitigation strategy that implies each mitigation Step below. (a) Acceptance (b) Avoidance (c) Transfer (e) Control Your task: STEP 1: STEP 2: STEP 3: Q.7.1. Determine the expected risk exposure (ERE) value for each scenario: NO mitigation, A, and B (use decision tree and show your works). Q.7.2. What is your recommendation and why? Q.7.3. Complete the 3-Step Mitigation Plan Table below for option A Month Exit Criteria WA/FBA Owner M Step Risk Level Step Activate Windows Step 2 Step 3 7.2 (30 pts.) During the Engineering and Manufacturing Development Phase, the estimated Profit and Risk components for developing the software is as follow: - Estimated Profit: $75M - Pf = Rp = 0.75, software failure - Cf = $140M (cost of failure) Opportunities to reduce the risk level: A. Implement the following three sequential steps will reduce Pf to 0.1 but required $10M investment Step 1: Train engineering team - Add two months buffer to schedule, and required 3 months to reduce the risk level (RL) from 0.75 to 0.5 Step 2: Develop rigor software development processes and tools;required 4 months to reduce RL from 0.5 to - Conduct process review and walkthrough. Step 3: Improve software integration test and software release process/method: required 3 months to reduce RL from 0.3 to 0.1 - create a 2 persons team with budget to manage and retire this risk within 2.5 months. B. Add verification & validation processes to verify and validate the software, included bringing industrial SMEs, will reduce Pf to 0.075: required $21.5M and four mitigation Steps. Q.7.4. Use the embedded risk mitigation waterfall template below to illustrate your risk level reduction plan for your selected option (copy and paste your complete waterfall in this document - Please DO NOT embed the PPT object) 07 - Risk Mitigation Plan Template.pptx Q.7.5. Based on the mitigation descriptions under option A, place the correct mitigation strategy that implies each mitigation Step below. (a) Acceptance (b) Avoidance (c) Transfer (e) Control Your task: STEP 1: STEP 2: STEP 3: Q.7.1. Determine the expected risk exposure (ERE) value for each scenario: NO mitigation, A, and B (use decision tree and show your works). Q.7.2. What is your recommendation and why? Q.7.3. Complete the 3-Step Mitigation Plan Table below for option A Month Exit Criteria WA/FBA Owner M Step Risk Level Step Activate Windows