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Project Risk Factor/: Capstone Assignment | Schoology

Project Risk Factor/: Capstone Assignment | Schoology
8/9/2016 Module 3: Capstone Assignment | Schoology
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Project Risk Factor (100 Points)
Project risk is defined simply as any possible event that may negatively affect the viability of a project and it
is computed using the simple relation:
Project Risk = Probability of Event * Consequences of Event
Zungoo Electronics, the second largest manufacturer of flat screen displays in the United States, expanded
its business into South America three years ago. Having experienced a roller coaster ride of large ups and
down in its business, the company would like to investigate the quantitative risk for its South America
operations using details in the table below:
Probability of Failure Category Probability of Failure Consequences of Failure Category
Process Maturity 30% Performance = 45%
Technical Complexity 30% Schedule = 55%
Vendor Dependency 25% Cost = 20
Workforce Availability 25% Reliability = 20%
Use the table above to answer the following questions:
Please calculate the total risk factor for this project. Would you assess this level of risk as low,
moderate (medium), or high? Why?
(Hint: Total Risk Factor = P+C­(P*C), where P = Average Probability of Failure and C = Average
Consequences of Failure. A common rule of thumb assigns any project with a Risk Factor below 0.30 as low
risk, between 0.30 and 0.70 as medium risk, and over 0.7 as high risk.)
What are all the risk mitigation strategies available to Zungoo? What specific mitigation
options would you recommend to the corporation?
In order to reduce the total risk factor by one level (e.g., high to medium or medium to low)
what would be your focus among the four probabilities of failure and four consequences of
failure listed?
If you were to prioritize your efforts, which risk factors would you address first? Why?
Explain the meaning of the following sentence: Reduction of risk factors is not cheap.
Your responses should be integrated in a well­written paper that meets the following requirements:
Be 2 to 3 pages in length plus graphical elements.
Be formatted according to the CSU­Global Guide to Writing and APA Requirements.
Include and reference two credible sources; the CSU­Global Library is a good place to find
these sources.
Posted Fri Jul 22, 2016 at 6:25 am
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Capstone ­ Project Management: FALL16­B­8 …
Module 3: Risk Management
Module 3: Capstone Assignment Grade: N/A

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