A project sponsor is risk averse and is therefore concerned about negative impacts on the project. To help with this concern, the project team identifies four project risks and then evaluates both the probability of occurrence and the impact of the risk if it occurs. The team uses a 1-5 scale, 1 being the lowest and 5 being the highest.
Based on the table, in what order should the project manager rank these risks for risk management purposes?
Your sponsor has committed to building a high-speed rail from one major inland city, Azules, to the coast. You have two possible routes, either Brazos or Corazon. Given each route's costs, odds, and rewards of high demand and low demand in this decision tree, how would you quantify the expected monetary value of the route to Brazos?
A project is being planned in a remote area with limited access to vehicles and equipment. The project manager proposes that the company use an outside vendor to deliver all heavy equipment. The project manager will take full responsibility for this activity. However, this strategy will result in a significant expense. What type of risk response is the project manager demonstrating?
Wendy is a project manager for an IT data center installation in a country that recently established independence. The country is in a strategic location for fiber optic communications, but the political climate is highly unstable. In order to keep the data center in the country but avoid unnecessary influence from the political dynamics, Wendy has negotiated with the U.S. Department of State to establish the data center in the basement of the U.S. Consulate in the capital city. This is an example of:
Tom is a project manager for a large software project. During project risk planning, Tom and his team are trying to decide whether to invest $10 million to develop new software or to instead invest $5 million to upgrade the existing software. The team is uncertain how strong demand will be for their product and, therefore, must account for this uncertainty in their analysis. What would be the best tool for the project manager to use in this case?
John is the project manager for a large construction project. He has just completed a Monte Carlo analysis simulation when he learns from a team member that some of the cost estimates used in the simulation were incorrect. John is highly risk-averse and concerned about this issue, so he meets with his team to discuss options for how to move forward. Based on this information, which choice below best describes what the team would likely do with the results from the Monte Carlo analysis?
As part of project planning, you and your project team are developing a comprehensive list of individual project risks and sources of overall project risk. You want to analyze the validity of assumptions and constraints to determine which pose a risk to the project. Which technique will be the most helpful for you?
As a project manager, you will need the assistance of other stakeholders in order to identify the risks associated with your project. You want to determine who are the individuals that might participate in the process of identifying risks to the project, as well as those who are available to act as risk owners. Where should you look?
A project to build a new water treatment plant is in the planning stage. The project manager is starting the project management process of Plan Risk Management. The project sponsor is risk averse, and this will affect the risk management plan. In preparing the risk management plan, the project manager is seeking a high-level understanding of the project description and boundaries, high-level requirements, and risks. Where is the best place for the project manager to find this information?
A project manager is leading an infrastructure development project and is just starting the process of prioritizing individual project risks for further analysis. A stakeholder has expressed concern that the existing information about individual project risks may not be accurate and reliable. What is the best course of action?