Reference no: EM132384183 , Length: word count : 750
MSPM 6170 Sustainability in Project, Portfolio, and Program Management
The PMC corporate safety officer, Sid Johnson, is visiting the region prior to the visit of CEO Les Walker. Mr. Johnson has requested a complete risk analysis of the top three risk projects in the region. The regional safety manager met with the SLA operations manager to select the top three risk projects. The Argentina Copper Mine Dos, ATT Chile Fiber Optics project, and the Catamarca Bridge projects were selected for analysis.
For this Assignment, read Part 4 "Trouble hits the SLA Region: Managing Risks in Project Portfolios" of the PMC Corporation Case Study.
Prepare a 3- to 4-page paper that addresses these items:
1-Assess the risk of each of the three projects mentioned above.
2- Document the results in a risk register.
3- Explain how the risk assessment of the three projects impacts the overall risk exposure of the portfolio.
4- Make recommendations to manage risk based on your assessment of the total project portfolio risk.
5- Prepare a summary of the risk exposure of the project portfolio for the SLA region.
Project Risk Management Process
The contents of a Risk Management Plan can be found in the PMBOK,in section 11.1.3.1.
Project Risk Identification
Once the approach and process for managing project risks have been determined, it is time to identify potential project risks and document them in a risk register. It is helpful to think about possible sources or categories of project risks as a way to organize the risk list. It may not be possible to identify every risk that could occur during the project, but risk management is an iterative process. Over the life of the project you will review risks often, and you will update the risk register as needed.
• Describe the process you will use to identify risks. Who will you include? When will you conduct these activities? How will you document the results?
• Describe the types of risks you will define, such as operational, technical, regulatory, etc.
• Describe the source of project risks that you plan to use, such as weather, vendor, staffing, technology, etc.
• Document project risks in the risk register in Columns A-F.
Project Risk Assessment (Qualitative)
Once project risks have been identified, the project team must analyze them to try to determine the likelihood (probability) of occurrence and the effect to the project (impact) should a given risk event occur. All risk analysis begins with qualitative analysis. To ensure accuracy and completeness, the project team should study both the risk event itself and the interactions between risk events.
• Explain how risk measurement scales will be developed. Will you use a standard organizational set of measurements or define your own?
• Explain how risks will be prioritized based on the defined qualitative measurement scales.
• Document risk measurement scales and their meaning in the project risk register in Columns H-J. For example:
o What does a "2" mean for probability? Is that 20% or 20-40%?
o What does a "4" mean for impact? Is that "project fails to meet one objective" or "project exceeds budget or timeline by 20%"?
Project Risk Assessment (Quantitative)
Once project risks have been qualitatively assessed, the project team must review those with the highest risk factor scores (probability x impact) and further analyze them using quantitative risk analysis methods.
• For this project, use expected monetary value (EMV) as your quantitative method.
• Explain how risks will be prioritized based on the EMV method.
• Document the EMV risk measurement information in the project risk register in Column K.
Project Risk Response
Document risk response strategies (plans) for each risk in the project risk register in Columns L-M. The risk response strategies should be derived from the ten strategies in the PMBOK(PMBOK® Guide) in sections 11.5.2.4 and 11.5.2.5.
Risk Monitoring and Control
Risk monitoring and control is about ensuring that you are responding to risks as planned, identifying and planning responses to newly identified risks, and reviewing and updating all contingency reserves (time and money). Your risk management plan should include the steps, processes, or procedures that you will use to continually monitor and update the risk register throughout the life of the project.
• Describe the method(s) you will use to monitor if risks are being triggered.
• Describe the method(s) you will use to identify and plan responses to newly identified risks.
• Describe the method(s) you will use to review and update any contingency reserves.
• Describe the timing on all of the above. For example, some you may do daily, others weekly, others monthly. Perhaps these tasks will be done as part of your regular status meetings or at special meetings to discuss risk.
Attachment:- Corporation Case Study.rar