1. Why was a risk management plan considered unnecessary?
2. Should risk management planning be performed in the proposal stage or after contract award, assuming that it must be done?
3. Does the customer have the right to expect the contractor to perform risk analysis and develop a risk management plan if it is not called out as part of the contractual statement of work?
4. Would Altrex have been more interested in developing a risk management plan if the project were funded entirely from within?
5. How effective will the risk management plan be if developed by the project manager in seclusion? 6. Should the customer be allowed to participate in or assist the contractor in developing a risk management plan?
7.
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12. Can risk management planning be justified on almost all programs and projects?
1. Why was a risk management plan considered unnecessary?
2. Should risk management planning be performed in the proposal stage or after contract award, assuming that it must be done?
3. Does the customer have the right to expect the contractor to perform risk analysis and develop a risk management plan if it is not called out as part of the contractual statement of work?
4. Would Altrex have been more interested in developing a risk management plan if the project were funded entirely from within?
5. How effective will the risk management plan be if developed by the project manager in seclusion? 6. Should the customer be allowed to participate in or assist the contractor in developing a risk management plan?
7. How might the Army have responded if it were presented with a risk management plan early during the R&D activities?
8. How effective is a risk management plan if cost overruns and schedule slippages are always allowed?
9. How can severe optimism or severe pessimism influence the development of a risk management plan?
10. How does one develop a risk management plan predicated upon needed advances in the state of the art?
11. Can the sudden disclosure of a risk management plan be used as a stopgap measure to prevent termination of a potentially failing project?
12. Can
Before developing a risk management plan an analysis of risk needs to be performed. This analysis should include all aspects of the project that may be part of
risks and determine the likelihood and consequence of that risk occurring during the project. The
The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!
All efforts will be made by the Project Manager to plan for and handle any risks. Continual risk monitoring will be done by the project manager throughout the projects duration.
Risks management is an important step during the process of a project. Failing to manage a risk may result in unforeseen event happening and a project’s failure. For example, with limited budget, an unforeseen event or an accident occurs in the middle of a project and this matter has not been considered and needs a big sum of expense, then the project may be stopped because of this unexpected event. We should know it is necessary to understand how to identify risks and assumptions based on the information. After identifying risks, it is important for project managers to set contingency plans to prevent and deal with these risks when they occur. Of course, several problems may happen during considering
Hillson, D & Simon, P. (2007). _Practical Project Risk Management: The ATOM Methodology_, Vienna, VA: Management Concepts, Inc.
date, and that a new risk management plan must be developed. Because of the importance of risk
* There are three (3) schools of thought regarding risk. The first considers the positive and negative aspects of risk, but sees them as separate. The second group believes that there are benefits from treating threats and opportunities together, while the third school does not label uncertainties, but addresses uncertainty as part of “doing the job.” Argue the value of having a risk strategy despite the cost associated with it. Include an example to support
The second problem arises during the time of handover of the project. This is the time where the contractors make the most nuisances and one will surely have to go through some legal hazards during that stage.
Our implementation plan mainly focuses on five risks, which are compliance risk, strategic risk, credit risk, operational risk, and financial risk. The corporation has established risk management committees to assess and manage the corporation’s exposure to the above risks. Then, the committees will prioritize these risks and establish guidelines for risk management processes. After that, it will assign the management of some risks to appropriate operating departments or individuals. The management process and department control activities are monitored by the committee and board of directors. However, each individual within the company has responsibility to identify and report potential risks to their managers.
3. If the contract doesn’t have applicable and similar cost in it, the contractor should propose a cost and submit to the stakeholders to get a approval, and carry out.
Client and the contractor have same priorities. Basically, contractor will make the decision in turnkey approach and client will just accept in silent. In this project, the contractor and the client have the same focus and priorities therefore the relationship between the contractor and client is good and there is no overruns or communication problems between both sides.
3. How should risk quantification problems be resolved if there exist differences of opinion between the customer and the contractors?
For this assignment the writer is going to discuss the nature and types of construction contracts and will explain the legal responsibilities of the various parties involved in the design and the construction process.
The risk management plan is aimed at three key areas of the project; these areas most likely to be affect poor project performance are the budget of the project, time scale and the quality. These will need to be watched closely to make sure areas cause no risks to each other if this occurs it could have a negative effect on project completion.