Explain the difference between Macro and Micro risk management. Think of a project you have worked on in the past couple of years and justify whether it should have been classified as a Macro or Micro risk management project.© BrainMass Inc. brainmass.com October 25, 2018, 2:53 am ad1c9bdddf
Explain the difference between Macro and Micro risk management. Think of a project you have worked on in the past couple of years and justify whether it should have been classified as a Macro or Micro risk management project.
The difference between Macro and Micro risk management is that in case of Macro risk management firms, companies, and project managers develop methods to stay alert to the "endogenous" component of risk that emerges from collective actions that impact the underlying drivers of risk. Examples of such macro risks are that a large number of firms undertake construction of housing apartments because they assume that the high demand in the market will enable them to realize a good value for their housing apartments. However, the market prices are driven down by the collective action of the large number of builders. The builders suffer a loss because they generated the very pressures that led to fall in prices and consequent losses. Let us take another example, during business ...
This solution gives you a detailed discussion on Macro and Micro project risk management
Budget, micro/macro approach, constraints and risks in project planning.
The Managed Care Department of the hospital has decided to implement a Case Management System called Care+. The cost of the software is $450,000. This includes the cost of the software, software configuration, conversion of existing data into the software database, training for 2 people, and on-site resources for 2 days during the initial installation and go-live.
A total number of 12 users will need training to operate this software. Training time is 2 days per person. This will be accomplished by the 2 people in-house that are trained by the vendor. This software system will require the purchase of 3 servers ($1,250 each) that will be configured in a cluster to support the department's request for redundancy and failover. In addition, backup software for each server is $1,500. The average salary of an IT worker is $91/hour.
I will need 1 programmer (40 hours), 1 database manager (65 hours), 1 project analyst (150 hours), 1 operations analyst (20 hours), 1 interface manager (20 hours), and 1 networking analyst (10 hours). The manager of each department has provided me with estimates of the time required to complete this project. Interim approval for this project has been granted. I have been named project manager.
Senior leadership would like for me to prepare a time-phased budget for final approval of this project. I will also need to provide a diagram of how I estimated direct costs, labor costs, and indirect costs. Final approval will be contingent upon the proposed budget. My team has been hired to consult with the project manager in this scenario on the allocation of resources. To assist the project manager, I have constructed two diagrams:
a. A work breakdown structure of direct, general administrative overheads
b. A time-phased budget (based on my work breakdown structure)
(Pleas see attached Appendix A and B) -I think that I did it correctly/legibly...?
I am really having so much trouble drawing out and hitting the main points in an essay format though...would you kindly help me with it?...I have to fill 1100 words and it is just not happening. Maybe if you could help me draw out the answers to or explanations of the following from the scenario, it might give me enough material to work with:
a. First, what would be the primary data sets used by the team to determine the budget?
b. What are some factors that could influence the accuracy of the team's estimates?
c. Did the team take a macro or a micro approach (please justify the approach)?
d. What are major constraints and how would the team prioritized them according to risk in determining the dollar amounts assigned in the budget?
e. Would there be anything else that I could discuss?
Here is what I have so far:
This brief will identify the primary data sets used to determine the budget, identify some factors that could influence the accuracy of the team's estimate, explain if the team took a macro or micro approach and justify the approach, identify the major constraints and explain how the team prioritized them according to risk in determining the dollar amounts assigned in the budget.
A. Cost of software which included software configuration, conversion of existing data into the software database, training for 2 people, and on-site resources for 2 days during the initial installation and go-live. Purchased 3 servers @ 1250 each, 3 backup software servers @ 1500 each, and breakdown of salaries for IT staff with the pay of $91 per hour;
B. The managers of each department gave an estimate of time required to complete the project and we used $91 hour for IT salaries. We used the timeframe of how many days it would take to train 12 users to operate the software and we computed the hours of the IT personnel into days.
C. Micro approach due to a smaller department and it is more detailed than using a macro approach (see first chapter of this weeks reading).
D. Major constraints could be computer glitches -may take the IT personnel longer to complete the project which would make the budget higher, 3 servers may not be sufficient-may need a larger backup system, and training could take more than 2 days-in- house trainers make not be trained adequately which could delay the 12 users being fully trained to operate the new system.