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Assignment No. 2
Assignment No. 2
1. Explain briefly why the customers of the project have requested additions to the
project scope. The project manager notifies you that additional risk planning will
Adjustment of the scope of the project is an official decision made by the project
manager and the client to change a feature, to expand or reduce its functionality. This
generally involves adjusting the cost, budget, other features, or the timeline. Scope
change is necessary in order for the project to stay adaptable and the common causes
for this change are: market changes, project site conditions, government interventions,
client opinion and other factors that contributes to such adjustments. Whatever the
causes are, scope changes can significantly impact the outcome of a project. Often, it
can lead to a scope creep that causes diversions of your resources, disruptions to your
budget, delays and compromised project quality. These are some possible risks of a
Project risk is the potential that a circumstance could arise that alters the outcome
of a project, for better or for worse. These risks may affect the development of the
project, so therefore may alter also the main purpose of the project after its completion.
2. You are the project manager for a project that will create a new and improved the
construction company’s processes. You would like to poll experts within your
company with a simple, anonymous form asking about any foreseeable risks in the
design, structure and intent of the company. With the collected information
subsequent anonymous polls are submitted to the group of experts. What kind of
how risky a certain action would be. Between a panel of experts and several rounds of
feedback and response modification, a conclusion is reached by the panel. This method
helps to analyze the risk and make strategic decisions from objectives and experience-
based opinions of a group of specialists. Gathering data from a group of experts will
3. Which risk analysis technique provides the project manager with a risk ranking?
The technique that provides ranking on the severity of the risks is called
qualitative risk analysis, and it can assess risks at all levels of the company. The
risks by calculating the risk's potential impact (multiplying the likelihood of risk
occurrence against the impact of the risk). Not only does this allow companies to better
determine the overall severity of a risk, but it also allows you to determine the main
4. You are the project manager and the project team are actively monitoring the
to be implemented should the pressure rise above 80 percent. The 80 percent mark
represents what?
Republic of the Philippines
Polytechnic University of the Philippines
Open University System
Sta. Mesa, Manila
The 80% mark is a risk threshold. A risk threshold is the point at which risk becomes
unacceptable. Upper limit of the 80% mark of the pressure gauge may result to a high
severity of risk that are out of organization’s control which will probably affect the
productivity of the equipment and the safety of equipment operators. This may also lead
to operational failure of the equipment. Thus, the project manager must have
appropriate risk assessment and mitigation plans in order to not meet or exceed the risk
a) 135
b) -3000
c) 45
d) -135
Republic of the Philippines
Polytechnic University of the Philippines
Open University System
Sta. Mesa, Manila
Prepare a Decision Tree. Choose the best answer. Please justify your answer.
From the decision tree presented above, the risk event 2 which benefits of about $5000
and a probability of occurrence of 0.50, has the most favorable risk among the five risk events.
Since risk event 2 has the largest expected monetary positive value, then the organization will
probably gain from it. While risk event 5 has the smallest expected monetary value which
means that the organization will lose a benefit from it. The positive risks which are risk events
2 and 4 play a crucial role in calculating the contingency reserve because this will lower the