Tips: Using the handout Risk Analysis (Unit Two/Supplement/Handout), pages 2-4, for guideline in drawing a simple 3x3 risk matrix with Probability and Consequences as the two axes. Depending on how you view the consequences of each of the above risks, it is possible to classify them into one of the quadrants of the qualitative risk matrix. The key is that students justify their classifications by giving a logical reason for the consequences they perceive for each risk factor, should the problem actually occur.

Developing Risk Mitigation Strategies. Develop a preliminary risk mitigation strategy for each of the risk factors identified in Problem 2. If you were to prioritize your efforts, which risk factors would you address first? Why?

Quantitative Risk Assessment. Assume the following information:

Probability of Failure Consequences of Failure

Maturity = .3 Cost = .1

Complexity = .3 Schedule = .7

Dependency = .5 Performance = .5

Calculate the overall risk factor for this project. Would you assess this level of risk as low, moderate, or high? Why?