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Activity I – Qualitative Risk Assessment. Imagine that you are a member of a project team that has been chargedwith developing a new product for the residential building industry.Using a qualitative risk analysis matrix, develop a risk assessment for aproject based on the following information: :
Identified risk factors Likelihood
1. Key team members pulled off project 1. High
2. Chance of economic downturn 2. Low
3. Project funding cut 3. Medium
4. Project scope changes 4. High
5. Poor spec. performance 5. Low
- Basedon this information, how would you rate the consequences of each of theidentified risk factors? Why? Construct the risk matrix and classifyeach of the risk factors in the matrix.
Activity II – Sochi Olympics—What’s the Cost of National Prestige?
TheSochi Olympics was an example of project costs running out of control;so much so that the final price tag (estimated to be more than $50billion), dwarfed the costs of every other Olympic Games to this pointin time. In addition to picking a questionable, sub-tropical locationfor the Games, from the very beginning, the process of developing thesite was subject to meddling from politicians, including PresidentVladimir Putin. Another major cost to the final price tag was related tocharges of wide-spread corruption, as sub-projects for the Games (suchas infrastructure, buildings, and roads) ended up with highly inflatedprice tags. This is a great case for general class discussion as weconsider the purpose for Olympic Games, the challenges of cost controlwith critical deadlines that must be adhered to, and the fact that costsare rising for Games to the point where in 2017, Rome, Budapest, andseveral other cities withdrew their bids to host the 2024 Olympicsbecause they could not trust the final costs and could not justify thevalue they would gain versus the costs of the project.
- Considerthe following statement: “Government-funded projects intended to serveas ‘prestige projects,’ such as the Sochi Olympics, should not be judgedon the basis of cost.” Do you agree or disagree with this statement?Why?
- Projectsuccess is defined as adherence to budget, schedule, functionality(performance), and client satisfaction. Under these criteria, citeevidence that suggests the Sochi Olympics project was a success and/orfailure.
- Whena project has a “hard gate,” like being ready on time, how does thataffect normal success criteria? Is it fair to judge a project with acritical completion date by normal project success standards? Why orwhy not?
- Considerthe problems with the Rio Olympics sites that quickly occurredfollowing completion of the 2016 Summer Games. Access the internet tofind evidence of the current state of the Sochi Olympic site. How is itbeing used and what are the current problems and opportunities forSochi?