7-1 Alaska Fly-Fishing Expedition

1. Brainstorm potential risks associated with this project. Try to come up

with at least five different risks.
1-Guest’s safety and wellness.
2. Disfunction of equipment.
3. Extreme weather conditions.
4. Food shortage
5.Lack of personnel.

Risk Event Likelihood Impact Difficulty When

Guest`s safety 3 4 1 Entire trip
and
wellness
Disfunction of 1 3 3 Entire trip
equipment
Extreme weather 4 4 2 Entire trip
conditions
Food Shortage 1 4 2 Entire trip
Lack of Personnel 1 5 2 Entire trip
2.Use a risk assessment form similar to Figure 7.6 to analyze identified risks.

3.Develop a risk response matrix similar to Figure 7.8 to outline how you would

Risk Event Likelihood Impact Difficulty When

Guest`s safety 3 4 1 Entire trip
and wellness
Disfunction of 1 3 3 Entire trip
equipment
Extreme 4 4 2 Entire trip
weather
conditions
Food Shortage 1 4 2 Entire trip

Lack of Personnel 1 5 2 Entire trip

 deal with each of the risks.

7-2 Silver Fiddle Construction

1. Identify potential risks associated with this project. Try to come up with at least five different risks.
-Unfavorable weather Conditions
-Absenteeism and inconsistent workers
-Revisions or change of preferences (Design, layout)
-Price Change on materials needed for construction
-House Costs More than the Project cost limit
-Possible reject or faulty appliances, wires, outlets, bulbs

2. Use a risk assessment form similar to Figure 7.6 to analyze identified risks

Risk Event Likelihood Impact Difficulty When

Unfavorable weather condition 3 5 3 Ground breaking, Progress ofe
th
projection, up to its finishing
phase
Absenteeism and inconsistent 2 5 2 Throughout the project
workers proper
Revision on the plans 3 5 4 After the Foundation is
poured and set
Price Change on materials 3 4 2 During the course of the
project
House cost more than limit 3 3 2 Throughout the project`s
completion
Possible reject or faulty 2 4 2 During the wiring and n
appliances, wires, outlets, bulbs installatio phase of the
project
 3. Develop a risk response matrix similar to Figure 7.8 to outline how you would deal with each of
the risks.

Risk Event Response Contingency Plan Trigger Who is

resonsi le
b
Unfavorable weather Retain Adjust to the weather , prioritize Forecast of unfavorable contractor
condition what needs to be done first weather in the area
Absenteeism and Avoid Avoid at all cost , if it happens, Workers start to Contrac or
inconsistent ready with back up or on call complain about work t de
workers consistent workers schedules and pressure /teamlea
r
Revision on the plans retain Communicating to the owner Not satisfied with actual contractor
change output of design
or revise certain layouts or designs
Price Change on Avoid Ensure that prices and quantity of Economic activity , prices contractor
materials materials needed are already varies from demand in
calculated market
House cost more than Avoid Careful cost projection must be Cost of materials in arket Book
limit done before project begins and increase and needed with keepe
buffer more quantity r or
contrac
t
Possible reject or faulty Avoid Choose reputable supplier Appliance malfunction Contrac or
appliances, wires, t
outlets, bulbs supplier
 7-3 Trans LAN Project
1. Identify potential risks associated with this project. Try to come up with at
least five different risks.
-Hardware Malfunctioning
-RF Interferences
-Security
-Inactive training
-Unspecific Requirements
2. Use a risk assessment form similar to Figure 7.6 to analyze identified risks.

Risk Event Likelihood Impact Difficulty When

Hardware Malfunctioning 1 5 5 Installation

RF Interferences 3 3 2 Post Installation

Security 1 5 5 Post Installation

Inactive training 1 4 2 Startup

Unspecific Requirements 3 5 5 Pre-Installation
 3. Develop a risk response matrix similar to Figure 7.8 to outline how you
would deal with each of the risks.
Risk Event Response Contingency Plan Trigger Who is
responsible
Hardware Reliable Supplier Replace Equipment Equipment Fail Toni
Malfunctioning

RF Avoid Directive antennas Other Matt

Interferences wireless
networks
Security Authenticating Reset Passwords Weak Passwords Joachim
users

Inactiv Practices and tests Additional training Overload Information Toni

e
trainin
g
Unspecific Long term needs Update requirements No specific Goals David
Requirements

7-4 XSU Spring Concert

1. Identify potential risks associated with this project. Try to come up with at least five
different risks.
-Fighting
-Technical Malfunction
-Big name artist is unavailable
-Funding insufficient
-Rain
2. Use a risk assessment form similar to Figure 7.6 to analyze identified risks.

Risk Event Likelihood Impact Difficulty When

Fighting 2 1 2 During Concert

Technical Malfunction 2 4 1 When concert

begins
Big Name artist is 3 3 1 Before Concert
unavailable
Funding insufficient 1 5 1 Before concert
Rain 2 5 1 During Concert
 3. Develop a risk response matrix similar to Figure 7.8 to outline how you would deal with each
of the risks.

Risk Event Respons Contingency Plan Trigger Who is

e responsible
Fighting Avoid Security will patrol constantly and People engaging in John, Head of
stop any conflicts. excessive rowdiness, Campus
violence, or exchanging of Security
blows
Technical Mitigate Have two technicians present to fix Sound, lighting, or other Janet, Technician
Malfunction any problems. equipment trouble lasts
more than five minutes
Big Name Mitigate Hire a backup performer or pay Big-name artist cancels Melissa, Vice
artist is other performers to play longer. appearance President of XSU
unavailable Student Body
Funding Mitigate Reduce scope. Hire fewer Funding is more than Alan, Student
insufficient performers or allow more vendors 20%short of need ten days Body Treasurer
to be at the before the concert
concert. Seek other sponsors
Rain Accept Use retractable roof (if present) or Weather forecast predicts Elmo, XSU Public
notify attendees to bring rain gear high chance of rain on Relations
May 28 employee
 7-5 Sustaining Project Risk Management during Implementation
This case demonstrates a common problem of sustaining risk management while the
project is being executed. It also suggests there is no pat answer to an important problem
that cannot be ignored! The topic is repeatedly discussed at PMI Roundtables.
The fundamental take-away of the case is that if you do not continuously review project
risks, the occurrence of a risk event can seriously impact project objectives (and your
future as a project manager). Risk surprises are not daily occurrences, but when they
happen because of neglect and inattention, the blame gets passed back to the project
manager
You could start of the discussion with some basic questions:
1. What kind of business is Futuronics in? The potential for new risks showing up during
product development of products that are at least seven years ahead of the market
would be very large!
2. A good way to get started with the case is to begin with the old analogy of a stock
portfolio. If conditions change and you fail to manage the portfolio, what happens? For
example, what corrective action is necessary if interest rates change; inflation
increases, shortage of oil? Were triggers in place? Constant management of project risk
is an on-going process; it does not end with the original risk plan.

3. Another question to get started is to ask what are the risks of not doing risk
analysis as the project progresses? New risks will not be identified early as new
information becomes
available.

4. Ask the class to identify project risks they have experienced or are aware of from
past projects. In practice, a frequent risk that is often neglected as is resource
turnover and loss of expertise. This is a good time to differentiate the terms “issue”
and “risk event.”

And then focus on specific challenges raised in the case:

Why do project stakeholders lose interest in project risk after the project is
underway? There are many reasons including:
a. Do not see it as necessary - the project is progressing well.
b. Too busy trying to complete the project.
c. They think someone else is paying attention to risk.
d. Fear that the identification of new risks may lead to the project being cancelled.
E. Fear of recrimination that identification of new risks will be traced back to individual
mistakes.

What are the dangers of not keeping on top of risk management during implementation?
The most obvious danger is that new risks will disrupt the project and lead to failure.
Another related danger is that risk identification will be late and the impact and cost will
be significant.