ITC4780 Unit V Mini Project

2. Review a document related to risk management, such as Microsoft's Security Risk Manage- ment Guide available from the companion Web site for this text. Does this guide address most of the topics related to risk management planning as described in this text? Document your analysis in a two-page paper.

3. Research risk management software. Are many products available? What are the main advantages of using them in managing projects? What are the main disadvantages? Write a two-page paper discussing your findings, and include at least three references.

4. Suppose your organization is deciding which of four projects to bid on. Information on each is in the table below. Assume that all up-front investments are not recovered, so they are shown as negative profits. Draw a diagram and calculate the EMV for each project. Write a few paragraphs explaining which projects you would bid on. Be sure to use the EMV informa-

456 tion and your personal risk tolerance to justify your answer.

Chapter 11

Project 1 50 percent Sl20,000 50 percent -$50,000

Project 2 30 percent s 100' 000 40 percent s 50,000 30 percent -860,000

Project 3 70 percent s 20,000 :10 percent -S 5,000

Project -l 30 percent s 40,000 JO percent s 30,000 20 percent $ 20,000

20 percent -850,000

5. Find an example of a company that took a big risk on an information technology project and succeeded. In adrJition, lind an example of a company that took a big risk and failed. Summarize each project and situation in a two-page paper where you should also discuss whether you believe that anything besides luck makes a difference between suc- cess and failure.

Tony and his team identified some risks during the first month of the Recreation and Well- ness Intranet Project. However, all they did was document them in a list. They never ranked them or developed any response strategies. Since several problems have been occurring on the project, such as key team members leaving the company, users being uncooperative, and team members not providing good status information, Tony has decided to be more pro- active in managing risks. He also wants to address positive as well as negative risks.

i. Create a risk register for the project, using Table i 1-5 and the data below it as a guide. Identity six potential risks, including risks related to the problems described above. Include negative and positive risks.

Plot the six risks on a probability/impact matrix, using Figure 11-7. Also assign a numeric value for the probability and impact of each risk on meeting the main project objective. use a scale of 1 to 10 in assigning the values, with 1 being low and 10 being high. For a simple risk factor calculation, multiply these two values (the probability score and the impact score). Add a column to your risk register to the right of the impact column called Risk Score. Enter the new data in the risk register. Write your rationale for how you determined the scores for one of the negative risks and one of the positive risks.

Develop a response strategy for one of the negative risks and one of the positive risks. Enter the information in the risk register. Also write a separate paragraph describing what specific tasks would need to be done to implement the strategy. Include time and

cost estimates tor each strategy, as well.

ion Web Site

· the companion Web site for this text (www.cengage.com/mis/schwalbe) to access:

References cited in the text and additional suggested readings for each chapter

Template files

Lecture notes

Interactive quizzes

Pod casts Links to general project management Web sites

And more See the Preface of this text for additional information on accessing the companion Web site.

Key Terms brainstorming -a technique by which a group attempts to generate ideas or find a solution for

a specific problem by amassing ideas spontaneously and without judgment contingency allowances- provisions held by the project sponsor or organization to reduce the

risk of cost or schedule overruns to an acceptable level; also called contingency reserves

contingency plans - predefined actions that the project team will take if an identified risk

event occurs contingency reserves- provisions held by the project sponsor or organization to reduce the

risk of cost or schedule overruns to an acceptable level; also called contingency

allowances decision tree- a diagramming analysis technique used to help select the best course of action

in situations in which future outcomes are uncertain Delphi technique- an approach used to derive a consensus among a panel of experts, to

make predictions about future developments expected monetary value (EMV)- the product of the risk event probability and the risk

event's monetary value fallback plans- plans developed for risks that have a high impact on meeting project

objectives, to be implemented if attempts to reduce the risk are not effective flowcharts - diagrams that show how various elements of a system relate to each other

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Project Risk Management