Purchase Solution

Risk probability and impact matrix

Not what you're looking for?

Ask Custom Question

Scenario:

Your company, a major defense contractor, recently submitted a bid for a Department of Defense (DoD) RFP entitled Automated Mobile Defense System (AMDS). The executive team at your company has decided to promote you as the new project manager to lead Project X. As the new project manager, you will be responsible for managing the entire scope of Project X, which entails your team being responsible in designing, developing, testing, demonstrating and deploying 10 AMDS units to a location to be determined by the DoD, assuming a successful demonstration. This project is expected to take at least 5 years to complete at a cost of $1.5 billion. The success of Project X is critical to the growth of your company. The DoD has committed to order 150 more AMDS units at a price of $10 million per unit if the AMDS demonstration is successful and meets all of their quality expectations. The goal of Project X is to develop a defense system to protect major and strategic cities within the US in the event of a missile attack from a hostile nation. It is to be a redundant system, the last in a series of defensive weapons to be used only in the event that all other defensive systems have failed, when enemy anti-ballistic missiles (ABMs) are approaching the US and only AMDS is left to take them down.

After reviewing the RFP, the statement of work (SOW) and your company's bidding proposal, you realized how complex this project will be. The conceptual design for the AMDS consists of a mobile housing unit (MHU) containing 20 anti-ballistic missiles (ABMs) based on a radically new design; an anti-missile control computer (AMCC) used to automatically target and deploy the ABMs; and a retrofitted detection device (code name: SKYEYE) built on proven, patented radar technology which your company owns. All of these devices (the ABMs, the AMCC and SKYEYE) will be completely housed in the MHU, which is planned to be an enhanced 18-wheel tractor-trailer. A self-contained power source (for the ABMs) and solar charged batteries for the AMCC and SKYEYE make the entire AMDS portable and completely automatic (no personnel are required to operate any of the systems). However, military personnel on a regular basis will perform routine system monitoring and maintenance, preferably from a remote site. On-site maintenance should only be needed on rare occasions expected to arise from unforeseen events such as earthquakes, tornados, ice storms, etc. Should it become necessary, military personnel will move the AMDS to a location known only to them. While it was not included in the design accepted by the DoD, your company would like to be able to provide additional capability with the system: They would like the AMDS to be able to operate while it is being moved.

Your team for this project will include over a dozen nuclear scientists, engineers, and technology professionals. Many of them are acquainted with the rudiments of project management, but very few know much about project risk management. You will need to do some risk management education and training, along with managing schedule, budget and scope.

Task:
Deliverable Length: 1500 - 1750 words in Excel spreadsheet

Details: You have selected your project team members from different disciplines (nuclear scientists, engineers, technologists, regulatory experts) to work with you on the project risk management plan. Before you can start developing your risk management plan, you first need to perform a risk analysis and create a probability and impact matrix. This matrix uses a weighting system to rate and measure project risks by organizing it in a chart using a three point estimate. You will be performing a risk probability and impact assessment in order to help you plan risk responses for these risks in the coming weeks, so it's important to agree on them now.

Create a risk probability and impact matrix by listing those risks that you think are appropriate for Project X. The matrix should include:

Description of the risk
External risks
Internal risks
Budget risks
Schedule risks
Resource risks
Quality risks
Categorize them according to your knowledge of risks and their probability and impact to the project. Develop a weighting system to help you rate risk levels (measure), utilizing the three point estimate to assign risk probability and impact. If you have made assumptions about the project, include them at the top or bottom of the template.

Purchase this Solution
Solution Summary

You have selected your project team members from different disciplines (nuclear scientists, engineers, technologists, regulatory experts) to work with you on the project risk management plan. Before you can start developing your risk management plan, you first need to perform a risk analysis and create a probability and impact matrix. This matrix uses a weighting system to rate and measure project risks by organizing it in a chart using a three point estimate. You will be performing a risk probability and impact assessment in order to help you plan risk responses for these risks in the coming weeks, so it's important to agree on them now.

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Basics of corporate finance

These questions will test you on your knowledge of finance.

View More Free Quizzes
Related BrainMass Solutions

  • This post addresses quantitative risk analysis.

    468132 Qualitative Risk analysis Explain probability and impact matrix used in qualitative risk analysis.

  • Paper Describing Benefits of a Risk Assessment Matrix

    ) High (3) Probability of Risk The risks with a low-probability and low-impact do not pose much of a threat to the pub project.

  • Assessing Project Risks

    Businessdictionary.com defines a risk matrix as a "table used in risk analysis in which rows show the risks, and columns show their likelihood (probability) of occurrence, and their impact."

  • Qualitative risk assessment.

    Probability and impact matrix - Probability and impact matrix involves rating risks for further quantitative analysis using a probability and impact matrix with the rating rules should be specified by the organization in advance.

  • Project Risk Management Overview

    The matrix can be constructed with probability on one axis and impact on the other and then the field can be divided into four quadrants as shown below. The larger the number, the larger the impact or probability.

  • Risk assessment matrix for a fictitious project

    The risk matrix also is a process for thinking through the probability and severity of events and having a range of people weigh in on whether all the events are on the matrix and whether they are properly classified.

  • Project Management Risk

    For each risk, document its risk event, impact, probability, impact rating/risk exposure, and mitigation strategy. Please check the attachment for the risk matrix in Excel, outlining the points below.

  • Risk assessment meeting

    The second is classification of high priority/low priority risk. Third one is related to probability impact matrix.

  • Project Risk Management

    151947 Project Risk Management: Calculate EMV; Risk Register; Probability/Impact Matrix Please see attached Exercise Questions (Week 9 BM file). Three tasks/exercises total.

View More Related Solutions