Project Risk Response Risk responses and action steps are defined during the ris
ID: 328282 • Letter: P
Question
Project Risk Response
Risk responses and action steps are defined during the risk response planning phase. Here the project team must plan the actions that will be taken should any identified risk actually materialize. This is typically done for some subset of the total population of risk issues identified—most likely those that are of the highest probability and/or impact. Risks can be both negative (threats) and positive (opportunities). The possible strategies for responding to negative risks include the following: avoid, transfer, mitigate, and accept. The possible strategies for responding to positive risks include the following: exploit, enhance, share, and accept.
QUESTION
Based on the below risk register regarding the Pepsi Refresh Program
Summarize the approach for developing risk response strategies. For example, which risks should one first attempt to avoid? Should they do it based on the risk factor score (P*I) or EMV?
Describe the process to use to determine risk triggers (the event that tells someone that the risk event is imminent).
A
B
C
D
E
F
G
H
I
J
K
L
M
Risk No.
Risk Name
Risk Event Description
Risk Impact Description
Risk Type
Risk Source
Risk Trigger
Impact Score
1 to 5
Prob. Score
1 to 5
Risk Factor
P*I
EMV*
Response Type
Response
1
Sales Decline
Not having the direct brand tie-in to project decreased odds of driving sales
Brand declined to quantify the project's effect on sales
Financial
Project Success
0.8
5
4
$99,099
2
Internet
Disruption of Internet services prevents idea submissions and voting
Decreases the participation level engaged in the project
Operational
Technology
0.9
5
4.5
$25,000
3
Unsatisfied Vendors
Vendor(s) may not support ideas presented by participants
Loose vendor support
Reputation
Environment
1.0
2
2
4
Nonuser-friendly website
Target audience finds the website user interface confusing
If participants find it hard to interact with the website, they may go away and never try again
Operational
Technology
0.4
4
1.6
5
Participants being treated fairly
Organizations participating in project feeling that votes are not properly/fairly being collected
Being accused can cause claims fraud out of the contest
Compliance
Reputation
0.8
2
1.6
6
Project testing produce unsatisfied results
The board is not satisfied with the results after analyzing data from the 1-year pilot
The board decides to put a halt to the program
Strategic
Project Success
0.3
5
1.5
7
Participant Behavior
There is unwanted or inappropriate behavior on website that brings negative views about the project cause
Resulting in negative influences on potential grantees and/or interested voters to support the cause
Reputation
Environment
0.3
4
1.2
8
Insufficient Resources for traditional marketing
Printing advertisements can be very costly
Resulting in not having enough people to distribute this type of advertisement
Financial
Staffing
0.6
2
1.2
9
Scattered results
The program Supports numerous organizations across various issues/geographies so ideas are all over the place.
Makes it hard to concentrate on an impact of a specific issue
Strategic
Project Success/Reputation
0.3
2
0.6
A
B
C
D
E
F
G
H
I
J
K
L
M
Risk No.
Risk Name
Risk Event Description
Risk Impact Description
Risk Type
Risk Source
Risk Trigger
Impact Score
1 to 5
Prob. Score
1 to 5
Risk Factor
P*I
EMV*
Response Type
Response
1
Sales Decline
Not having the direct brand tie-in to project decreased odds of driving sales
Brand declined to quantify the project's effect on sales
Financial
Project Success
0.8
5
4
$99,099
2
Internet
Disruption of Internet services prevents idea submissions and voting
Decreases the participation level engaged in the project
Operational
Technology
0.9
5
4.5
$25,000
3
Unsatisfied Vendors
Vendor(s) may not support ideas presented by participants
Loose vendor support
Reputation
Environment
1.0
2
2
4
Nonuser-friendly website
Target audience finds the website user interface confusing
If participants find it hard to interact with the website, they may go away and never try again
Operational
Technology
0.4
4
1.6
5
Participants being treated fairly
Organizations participating in project feeling that votes are not properly/fairly being collected
Being accused can cause claims fraud out of the contest
Compliance
Reputation
0.8
2
1.6
6
Project testing produce unsatisfied results
The board is not satisfied with the results after analyzing data from the 1-year pilot
The board decides to put a halt to the program
Strategic
Project Success
0.3
5
1.5
7
Participant Behavior
There is unwanted or inappropriate behavior on website that brings negative views about the project cause
Resulting in negative influences on potential grantees and/or interested voters to support the cause
Reputation
Environment
0.3
4
1.2
8
Insufficient Resources for traditional marketing
Printing advertisements can be very costly
Resulting in not having enough people to distribute this type of advertisement
Financial
Staffing
0.6
2
1.2
9
Scattered results
The program Supports numerous organizations across various issues/geographies so ideas are all over the place.
Makes it hard to concentrate on an impact of a specific issue
Strategic
Project Success/Reputation
0.3
2
0.6
Explanation / Answer
Answer:
Project Risks: Project risks are defined as the potential risks which can have adverse impact on the project and its completion, in terms of project high timelines, project high cost, lack of project resources, non-availability of staff, lack of government support etc.
Thus all key factors which can have significant impact on the project quality, cost and lead time, are known as the risks to the project.
Process for risk identification: The project leader along with project risk manager will frame the process for risk identification in the project execution. The process will run as below
Approach for developing risk response strategies:
The following approach will be adapted for developing risk response for each risks of the project as below
The prioritized risks list is as below
Describe the process to use to determine risk triggers: The process use to determine the risk triggers is as below
A B C D E F G H I J K L M Risk No. Risk Name Risk Event Description Risk Impact Description Risk Type Risk Source Risk Trigger Impact Score Prob. Score Risk Factor EMV* Response Type Response 1 to 5 1 to 5 P*I 2 Internet Disruption of Internet services prevents idea submissions and voting Decreases the participation level engaged in the project Operational Technology 0.9 5 4.5 $25,000 1 Sales Decline Not having the direct brand tie-in to project decreased odds of driving sales Brand declined to quantify the project's effect on sales Financial Project Success 0.8 5 4.0 $99,099 3 Unsatisfied Vendors Vendor(s) may not support ideas presented by participants Loose vendor support Reputation Environment 1 2 2.0 5 Participants being treated fairly Organizations participating in project feeling that votes are not properly/fairly being collected Being accused can cause claims fraud out of the contest Compliance Reputation 0.8 2 1.6 4 Nonuser-friendly website Target audience finds the website user interface confusing If participants find it hard to interact with the website, they may go away and never try again Operational Technology 0.4 4 1.6 6 Project testing produce unsatisfied results The board is not satisfied with the results after analyzing data from the 1-year pilot The board decides to put a halt to the program Strategic Project Success 0.3 5 1.5 8 Insufficient Resources for traditional marketing Printing advertisements can be very costly Resulting in not having enough people to distribute this type of advertisement Financial Staffing 0.6 2 1.2 7 Participant Behavior There is unwanted or inappropriate behavior on website that brings negative views about the project cause Resulting in negative influences on potential grantees and/or interested voters to support the cause Reputation Environment 0.3 4 1.2 9 Scattered results The program Supports numerous organizations across various issues/geographies so ideas are all over the place. Makes it hard to concentrate on an impact of a specific issue Strategic Project Success/Reputation 0.3 2 0.6Related Questions
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