Based on the project's performance complete the risk assessment chart below by rating each risk factor as follows: • High, medium, or low in terms of its potential impact • High, medium, or low in terms of its probability of occurrence
Based on the project's performance complete the risk assessment chart below by rating each risk factor as follows: • High, medium, or low in terms of its potential impact • High, medium, or low in terms of its probability of occurrence
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Scenario
You are the project manager working on a Market Mailing project. The client informed your project team
during the project planning phase that the project must be completed on time in order to sync with the launch
of the new product. Also, the client informed you and the team that there is no cash reserve for the project so
the project has to be completed within budget. Below is the status update that two project team members
(Jennifer and Ben) put together. Based on the project's performance to date, complete the Rating Project
Risk exercise on the next page.
Task| Budgeted Actual Percent
works
Estimate Planned Planned Actual Projected| Planned
to
Actual
Resource Resource
Utilization Utilization
works
end date
work
complete complete date
start
start
date
end
cost
cost
date
to
date
60
hours
I $600
50
hours
I $500
June 15 March June 15
120
hours /
$1200
120
hours /
$1200
A
30%
90 hours
March
25%
30%
I $900
15
30
May 15
April
8
B
30%
April 1
May 30
30%
60 hours
I $600
50%
Rating Project Risk
Based on the project's performance complete the risk assessment chart below by rating each risk factor as
follows:
• High, medium, or low in terms of its potential impact
• High, medium, or low in terms of its probability of occurrence
Project Risk Items
Potential
Probability
Overall Risk Risk Score Justification
Impact
of
(H/M/L)
Statement
(H /M/L)
Occurrence
(H /M/L)
Completing Task A
over the $1,200 budget
Completing Task A
after the scheduled
end date of June 15
Completing Task B
over the $1,200 budget
Completing Task B
after the scheduled
end date of May 30
Extract the combined effect of those two values, combined with your judgment, and score each risk factor as
high, medium, or low overall. Justify your scores using the data provided above.
Expert Solution
Step 1
Risk Assessment:
Risk assessment is the act of assessing the possible or prospective risks that may arise in a project. Risk assessment analyses the potential hazards and implements various techniques to eliminate them.
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