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Risks in a Project

1. What types of risks are inherent in a project? Where do they originate? Can they be mitigated? How? What are the consequences of ignoring a conflict within a project team?

2. What is the importance of a variance to a project budget, schedule, or specification? How does a PM find the root cause of a variance? Is there an acceptable variance? Is a variance ever acceptable? Why or why not?

3. What is the concept of earned value? What real life examples would illustrate the earned value concept? How does this approach to performance measurement differ from simply tracking cost or schedule?

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The response addresses the queries posted in 997 words with references.

// As per the requirements of the paper, the first section will discuss about the various types of risk that can occur for a project. It also explains that from where the risk has originated and the ways to mitigate those risks. The conflicts within a project team should always be solved and the section also focuses on this concept: //

1. Risks are inbuilt in any project. There are various types of risky events present in a project. Such as inherent risk, acquired risk, external risk and Universal risk.

Inherent Risk: These events or risks are resulting from the nature of the Project. For example: the type of software being developed, the complexity of the network being implemented, etc (Greaver, 1999).
Acquired: these are events that are developed internally in the project. The events are based on decisions taken internally by the team of project. Generally, these events are under the control of the manager of the project team. For example: software development methodologies, development tools, experience of developers and choice of operating system.
External: these events result from factors outside the project or the control of the Project Manager. For example: the quality of the tools or the operating software, change in laws, social and political events, unavoidable casualty events (Greaver, 1999).
The risk originates itself in the project. Yes, these risks can be mitigated with the help of risk assessment techniques. The objective of the risk assessment process is to identify the most significant risks associated with the migration project and to plan for how to avoid or minimize those risks (Chapter 2- Envisioning Phase, 2004). The risk can also be mitigated by redesigning or adopting new techniques of strategies or different approach. The migration risk assessment tool helps in identifying, evaluating and prioritizing the risks to the project.

Conflict is a motivating force of change that leads to an improved decision-making processes and progressive team development. Ignoring the conflicts in team may lead to negative consequences (Managing Conflict in Work Teams, 2008). There would ...

Solution Summary

The response addresses the concepts of inherent risk, budget variance and earned value in 997 words with references.