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Horizon Investment Bank has been doing major projects for improving its business for the past five (5) years. So far, 60% of its projects did not meet the necessary targets of being on time, within budget and within scope. It has recently recognized that a single person with sole authority over the project execution must be assigned. This individual should also be an excellent risk manager.
a) Hanson McIntire, an existing employee, has been assigned as a project manager at Horizon Investment Bank. Explain the risk management processes that should be recommended to ensure the successful delivery of future projects.
b) Hanson’s first task at Horizon, involves determining if the existing information system should be upgraded or remain. Two upgrade options, whether to build the new infrastructure or buy a new infrastructure is shown in the decision tree created below by Hanson, with the associated costs and impacts.
The cost and impact of staying with the existing infrastructure is also shown below.
Using EVM techniques, what decision should Hanson recommend to Horizon Investment Bank’s Management.
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