1. EGR 312 - 211 Risk Management What is it? 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. EGR 312 - 212 Risk Assessment Identifying risks –Risks concerned with the tasks themselves –Risks that occur between tasks Estimating consequences –Monetary cost of shortfall –Impact to schedule overrun –Shortfall on cost and schedule overrun

3. EGR 312 - 213 Risk Reduction Reduce uncertainty – Prototyping, simulation, modeling –Planning in detail, including mitigation plans –Parallel alternative developments Reduce consequence –Decoupling related items –Providing margins or reserves – Checking references – Using trained or certified staff – Using proven technology – Verifying suitability of inputs

4. EGR 312 - 214 Other risk management techniques Risk Avoidance Reducing requirements Increasing budget (locally) Extending schedule (locally) Risk Transfer Insurance Aligning responsibility and authority

5. EGR 312 - 215 Problem Resolution Problems are inherent in complex projects. Problem Sources Motivation Conflict Technology Poor Planning Mother Nature Problem Solving Communication Root cause analysis Obtain advice

6. EGR 312 - 216 Project Ethics What are the characteristics of someone who is: –trustworthy –a person of integrity –an ethical person –?

7. EGR 312 - 217 Project Ethics (see attached) Applicable codes of ethics: –Project Management Institute (PMI) Member Ethical Standards –Code of Ethics for Engineers (NSPE) –other professional codes of ethics Let’s compare PMI and NSPE codes … –PMI … http://www.pmi.org/About- Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx http://www.pmi.org/About- Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx –NSPE … http://www.nspe.org/Ethics/CodeofEthics/index.html http://www.nspe.org/Ethics/CodeofEthics/index.html

8. EGR 312 - 218 Project Ethics Are there 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. EGR 312 - 219 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. EGR 312 - 2110 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….