1. A project faced two potential risk events. First was weather related - A and

Question

1. A project faced two potential risk events. First was weather related - A and second was people related risk - B. A has probability of 30% and the loss associated is $40,000. B has a probability of 70% and the loss of $30,000. Calculate risk impact (in $s) of each event. Which risk event (A or B) would you prioritize as more important for risk response and why?

2. Name 3 risk factors the French company missed up front when it tried to do Panama Canal Project? Explain very briefly.

3. What is a risk owner? What does he/she do?

Explanation / Answer

1. Risk = Likelihood * Impact

Risk Impact of A = 0.3* 40000= $12000

Risk Impact of B = 0.7 * 30000 = $21000

For a significant risk response, B is quite critical as its impact is quite huge.

2. The 3 risk factors, which the French company missed in the Panama Canal Project:

3. A risk owner is the point of contact for the designated risk. Its his duty to monitor the risk, monitor its track execution and record the risk responses. The risk owner is the subject matter expert for that risk and hence, has in-depth knowledge for the same.

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