1. Risk Management Risk Management
Assessing, reducing, and controlling risks so that project objectives are met without requiring excessive schedules or resource budgets.
Note, all project planning can be consider risk management, however, this topic discusses specific actions to plan for risk.

2. Risk Management Risk Assessment Risk Item Identification
Risks concerned with the tasks themselves
Risks that occur between tasks
Risk Consequence Estimation
Monetary cost of shortfall
Impact to schedule overrun
Shortfall on cost and schedule overrun

3. Risk Management Risk Reduction Uncertainty Reduction
Prototyping, simulation, modeling
Planning in detail
Parallel alternative developments
Checking references
Using trained or certified staff
Using proven technology
Verifying suitability of inputs

4. Risk Management Risk Reduction – cont. Consequence Reduction
Decoupling related items
Providing margins or reserves

5. Risk Management Risk Avoidance Reducing requirements
Increasing budget (locally)
Extending schedule (locally)

6. Risk Management Risk Transfer Insurance
Aligning responsibility and authority

7. Problem Resolution Problems are inherent in complex projects.
Problem Identification
Motivation
Conflict
Technology
Poor Planning
Mother Nature
Problem Solving
Communication
Root cause analysis
Obtain advice

8. Project Ethics
Are there clear always clear answers to ethical questions?
Sample discussion questions:
Should you quote projects for less than the estimated cost?
If you do under-quote a project should you go back and ask for additional funds?
Should you ever go back and ask for additional funds?

9. Project Ethics Discussion questions continued:
If in your opinion, the specifications are in excess of what is required, should you design to a more realistic set of specifications in order to save the customer money?
If there is an opportunity to save the customer money even though it may mean smaller profits for yourself, should you inform the customer?
Should you give more attention to the “squeaky wheel”?

10. Project Ethics Discussion questions continued:
Should you pay one worker more than another, even though they do equivalent work?
If you make an agreement to purchase materials from a vendor, but find a lower price elsewhere, should you buy from the new source?
Other situational questions from the class….