Nathanniel P.

Gonzales MSCM
604 Construction Quality Risk Management

Discuss briefly the following Case Study:

a. When is it appropriate to accept a project risk

It is appropriate to accept a risk if the risk is in balance with the reward. It certainly is
appropriate to accept a project risk in some instances. Every risks on a project may
correspond to particular opportunity, intensive evaluation and analysis should be done in
order to make right decisions of accepting the risks which may also result to a higher
opportunity. Consider the weather or the dangerous nature of project work such as
construction. You don’t have to mitigate or transfer all risks because some are worth
accepting, exploiting, enhancing, or even sharing. Just because a project team has not done
a particular type of work before does not equate to accepting risks.

b. If you are the project manager of the XYZ project, which of the following techniques will you
use to create the risk management plan,
i. Risk tolerance,
ii. Status meetings,
iii. Planning meetings,
iv. Variance meetings.
Justify your answer.
Planning meetings are used to create the risk management plan. The project manager,
project team leaders, key stakeholders, and other individuals with the power to make
decisions regarding risk management attend the meetings. Risk management plan is the
output under plan risk management with inputs comprising of project management plan,
project charter, stakeholder register, enterprise environmental factors, and organizational
process assets.

c. You are the project manager of the ABC project. You and the supplier have agreed to
substitute the type of asphalt used in the pavement to a slightly thicker grade should there be
more than 7 % error in production to slow down, but errors should diminish. This is an
example of the following,
i. threshold,
ii. Tracking,
iii. Budgeting,
iv. JIT manufacturing.
Choose and justify your answer.
An error value of 7 percent represents the threshold under which the project is allowed to
operate. Should the number of errors increase beyond 7 percent, the current plastic will be
substituted.

d. The customers of the project have requested additions to the project scope. The project
manager notifies you that additional risk planning will need to be added to the project
schedule. Why?
Risk planning should always occur whenever the scope is adjusted. When the scope has
been changed, the project manager should require risk planning to analyze the additions for
risks to the project’s success. Different scopes of work have different potential risks that are
related to that scope of work, additional scope means changing or adding potential risks to
the project, so risk planning should also be revised for additional risks related to that scopes.