PROJECT MANAGEMENT EXERCISE MODULE 6 Assignment

PROJECT MANAGEMENT EXERCISE MODULE 6 - Assignment Example In risk identification, lists of possible risks are generated through risk profiling, brainstorming along with problem identification. In risk assessment, the vulnerability of the risks are analyzed and measured (MacCrimmon Wehrung, & Stanbury, 2006). In risk response development, the risks manager identifies all the activities which aim in reducing the likelihood of the risks from happening. These include; risk mitigation, risk avoidance, risk transfer and risk retaining. However, in risk response control, the risks managers establish a change management system and risk control such as initiating contingency plans while monitoring, tracking and reporting risk (Lientz & Larssen, 2006). 2. Explain the relationship between risk and cost during the project life cycle (5 Points) The relationship between risk and cost during a project life cycle is that, on the basis of uncertainty, risk management cost under certainty while risk loss cost under uncertainty. During project development, th e project developer has to balance cost and risk by understanding their relationships as well as, developing a learning organization from cost and risks lessons. During the project development, the cost and risk are very high. ... The project change control is significant because it allows the project team to identify, evaluate, approve as well as, document the proposed changes to the project baseline. First, the process is initiated a change request. The change request is a formal mechanism used to propose and assess a deviation to the project being developed. After the change request is evaluated, there is approval that is granted at an appropriate level after which the change request becomes a change order for implementation (Larson & Gray, 2003). Second process is where the change order is communicated to the affected parties along with cooperating them in the project baseline in that data integrity is preserved and budgets reconciled across the project documentation such as work Authorization Document (MacCrimmon Wehrung, & Stanbury, 2006). In change control process, the three phases such as request change, review phase and documentation phase are accomplished in request change phase, appropriate classifi cation is determined, however, for the review phase, assessment of a proposed change request is accomplished while the approval is obtained from an appropriate authority level. Lastly, the approved changes are thus implemented and the integrated project baseline documents are revised in the document phase (Lientz & Larssen, 2006). Silver Fiddle Construction Case Potential risks associated with the project Risks are events which its occurrence can cause positive or negative effects on the project’s objectives. However, risk management helps in identifying, assessing, responding, monitoring as well as, reporting of the risks. For the Silver Fiddle Construction Case, the risk management plan will define how risks associated