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1. 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. You require the services of a number of sub-contractors to complete the design and development of this project.Because you face severe penalties if the project is late to market, your boss has asked you and your project team to develop risk mitigation strategies to minimise your company's exposure on this project.Discuss the various types of risk you are likely to encounter.How should your company deal with them (accept, share, transfer or minimise them)? Justify your answers.
2. Suppose you are a member of a project team that is evaluating the bids of potential contractors for developing some sub-assemblies for your project. Your boss makes it clear that any successful bid must demonstrate a balance between risk and price.Explain why this is so, specifically, why price and risk are seen as equally important but opposite issues in determining the winner of the contract. Is al ow-price/high-risk bid acceptable? Is a high-price/low-risk bid acceptable? Why or why not?
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