UPX Material
    Risk Identification Scenarios
CPMGT/302 Version 10
    1
University of Phoenix Material
Risk Identification Scenarios
Scenario One
A retail firm has a project that is focusing on expansion into third-world countries to sell pharmaceutical products. The project timeline is, as always, aggressive. The scope is well documented and understood by the project team and key members of the firm. The firm is financially sound, with project funds secure; however, the stakeholders expect that the project will pay for itself within 2 years of deployment.
    Risk event
    Probability of risk event
(1=high; 3=medium; 5=low)
    Impact of risk event
(1=high; 3=medium; 5=low)
    Variation in shipping and Tariff rates due to change of country- Cost analysis required
    3
    2
    Poor sales of product- Market analysis required to understand product demand
    1
    2
    Distribution related partnership agreements- Focus on local distribution
    5
    4
    Holding of product during receipt or shipping- Import Export and Government regulations must be studied
    3
    1
    No shelf selling of product- Local sale license and permits required
    5
    3
    No payoff from project in deployed 2 years- Study of ROI required
    1
    1
    No identification and information to stakeholders- RACI and Communication management plan is required
    5
    4
Scenario Two
A construction company has been awarded the contract to build a pipeline in Alaska. The project timeline is of the highest priority because work can only be completed during summer months due to adverse weather conditions. One of the suppliers of a key component has longer lead time than is required to complete the pipeline, but may be able to deliver if the construction company will pay fees to expedite. There are other suppliers, but these suppliers are not on the construction company’s approved suppler list and it would take time to get them approved. There is a huge penalty in the contract if the project is not completed on time.
    Risk event
    Probability of risk event
(1=high; 3=medium; 5=low)
    Impact of risk event
(1=high; 3=medium; 5=low)
    Schedule delays- timeline approval required
    1
    1
    Time delays- Approved supplier long lead time
    1
    1
    Unforeseen Weather conditions resulting in less production in summers
    3
    1
    Budget exceeding due to timely delivery of crucial components
    1
    1
    Cancellation or delays of the projects
    1
    5
    Natural hazard/ disaster
    3
    1
    Breakdown of equipment
    5
    1
    Non-secured funds –management didn’t commit for project funding
    3
    1
    Severe penalties and cost- company may undergo bankruptcy
    5
    1
Scenario Three
A telecommunications company has just assigned you to be project manager for a product improvement project. The scope statement of the project simply says, “Make this product better.” The engineering team believes that they know how to make the product better and have ignored ideas from the sales team. The project funds are secure, as the company believes that improving this product will give them strategic advantages.
    Risk event
    Probability of risk event
(1=high; 3=medium; 5=low)
    Impact of risk event
(1=high; 3=medium; 5=low)
    Scope definition issue- not clearly defined project
    1
    1
    Team conflicts (Internal arguments)- team building is must
    3
    3
    Improper and inefficient information sharing- communication management plan is required
    5
    3
    No selling of improved product...