PM 0016 –PROJECT RISK MANAGEMENT

DRIVE: SPRING 2016

PROGRAM: MBADS (SEM 4/SEM 6) MBAFLEX/ MBA (SEM 4) PGDPMN (SEM 2)

SUBJECT CODE & NAME: PM 0016 –PROJECT RISK MANAGEMENT

BK ID: B2012

CREDIT AND MARKS: 4 CREDITS AND 60 MARKS

 

Q1.What is Project Risk? Explain different sources of project risk with examples

  • Project Risk
  • Sources of project risk

Answer:

Risk is one of the major factors to be considered during the management of a project. Risk can be defined as, A probability or threat of damage, injury, liability, loss or any other negative occurrence that is caused by external or internal

 

 

Q.2: What is Risk Opportunity and Management System (ROMS)? What are its benefits?

  1. Define ROMS, why was it designed, how can it be used? (2 marks)

List its objectives (2 marks)

Describe the output of ROMS (2 marks)

List any 4 benefits of ROMS 4 (1 mark for each benefit)

 

Answer:

Define ROMS, why was it designed, how can it be used:

ROMS is a risk and opportunity management system that can be applied throughout an organisation. This system helps in establishing a practical, integrated, systematic, rigorous and collective approach for managing the risks and opportunities over a business’s or

 

 

Q3.

 

  1. Using Internet, identify a project and list down all the activities and milestones of a project and the activity risks associated with these milestones.
  2. Using Internet, identify a project and the activity risks associated with it.

Categorise the risks into three groups: controllable known, uncontrollable known and unknown. Find out the percentage of “unknowns” in total risks at the beginning and towards the end of the project.

 

  • Using Internet, identify a project and list down all the activities and milestones of a project and the activity risks associated with these milestones.

 

  • Using Internet, identify a project and the activity risks associated with it. Categorise the risks into three groups: controllable known, uncontrollable known and unknown. Find out the percentage of “unknowns” in total risks at the beginning and towards the end of the project.

 

Answer:

Milestones are significant events within a project schedule. They are not work activities. They can be considered as “activities with zero duration”. Milestones are often used to indicate a phase end, completion of a deliverable, or a checkpoint in the project execution. A milestone is a logical point in a project but at this point, no work is actually done. So do milestones have activity risks? The answer is yes.

First, a milestone

 

Q.4: What are the sources of resource risks?

  1. Explain the sources of

People risks (4 marks)

Outsourcing risks (3 marks)

Money risks (3 marks)

 

Answer:

People risks:

Risks related to people represent the maximum risks (by count) in the PERIL database, accounting for more than two-thirds of the total risk incidents. The sources of people risks can be divided into two main categories, which are as follows:

  1. Availability

 

Q.5: What are different types of scope risks?

  1. List the types of scope risks (1 marks)

Explain the 3 scope risks 9 (3 marks for each risk)

 Answer:

List the types of scope risks:

The different types of scope risks are discussed as follows:

  • Scope creep
  • Scope gap
  • Scope dependency
  • Defect

 

Explain the 3 scope risks:

Scope creep

Scope creep is the most common scope risk. It stems from gaps in the understanding or documentation of requirements. It is a dispute between the customer and project team over the scope boundary. In most scenarios, the requirements evolve and mutate as the project progresses. It happens when the customer pushes for including something that was not included in the

 

 

Q.6: Explain the three point estimates used in quantitative risk analysis.

  1. Explain the term “three point estimates” (2 marks)

Why are they used in quantitative risk analysis (4 marks)

How is it different from PERT distributions (4 marks)

 

Answer:

Explain the term “three point estimates”:

Three-point estimates describe three scenarios (pessimistic, base case and optimistic) and thus, help in considering different outcomes and their impacts. Three-point estimates provide a simple means of representing the magnitude and range of a risk impact