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Assume that you are a project team member for a highly complex project, based on a new technology that has never been directly proven in the marketplace. Further, you require the services of a number of sub-contractors to complete the design and development of this project. Because you are facing severe penalties in the event the project is late to market, your boss has asked you and your project team to develop risk mitigation strategies to minimize your company’s exposure on this project.
1. List the risk factors (at least 5) that you are likely to encounter and discuss their types.
2. Construct a Risk Impact Matrix (3x3) and place the risk factors you identified in step #1 in the matrix. Give your explanation.
3. Develop a quantitative analysis on the project risk. Assign scores to the dimensions of Probability of Failure and Consequence of Failure of this project based on the Risk Impact Matrix. Give your explanation for each score assigned. Calculate the overall risk factor of this project.
4. How should your company deal with them (accept them, share them, transfer them, or minimize them)? Justify your answers.
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