ALTEC CORPORATION

1. Why was a risk management plan considered unnecessary?

As a condition of the contract the risk management plan was not required. Altex also fears that if
they know all the threats, the army will destroy the project. In addition, though they can become
cynical when designing risk management plan.

2. Should risk management planning be performed in the proposal stage or after

contract award, assuming that it must be done?

Risk management strategy is not a separate task but is part of the overall planning and
management process. Starting with the planning phase, it identifies scope and processes for
defining, evaluating and managing risks that could affect the project. From the very beginning, it
should be established early in the program and it should be discussed continuously through the
programme. As I see, some of the initial encounters can occur during the Proposal stage and
there is much more comprehensive risk plan to be established after the contract has been
awarded to a specific company.

3. Does the customer have the right to expect the contractor to perform risk
analysis and develop a risk management plan if it is not called out as part
of the contractual statement of work?

Yeah, as part of project preparation the client has the right to expect the contractor to
carry out risk analysis and establish a risk management strategy. Furthermore, if it is
not written in the contract the customer can not compel the contractor to enforce it.
The customer wants the contractor to be an professional who knows what to do with
any project that is a justification to hire him to do the requirement

4. Would Altex have been more interested in developing a risk

management plan if the project were funded entirely from within?

In my opinion, if supported from inside Altex would prefer to carry out a risk
reduction program. It would allow work to be done with a set amount of resources that
will not require a large budget and the probability of meeting the standard would
exceed 60-70%.

5. How effective will the risk management plan be if developed by the

project manager in seclusion?

The risk management strategy can not be carried out in isolation because it is part of
the preparation of projects. This defines how the project's risk reduction practices can
be handled and planmed. This needs to be built in the project from the outset and
grown continuously through the project life cycle.
 6. Should the customer be allowed to participate in or assist the contractor
in developing a risk management plan?

Risk management involves a daily presence of all project stakeholders. The threats the
customer mainly found using questionnaires and surveys. The customer should be
interested in not causing the customer to lose trust in the product, which at the same time
leads to a low-quality work being carried out.

7. How might the Army have responded if it were presented with a risk man-
agement plan early during the R&D activities?

Army could consider a more appropriate contractor if they provided a risk

management plan earlier before contracts were signed. They may also write penalties
in the contract award if the standard is not met, in addition to being more protection.
Knowing and understanding the risks before awarding a deal, and also after changing
the entire approach to a declaration of work.

8. How effective is a risk management plan if cost overruns and schedule

slip- pages are always allowed?

No need for a risk management program when only planning for cost overruns and
schedule slip pages. Most project decisions linked strongly to cost and schedule.
Any expense, schedule, and performance-related program item has a direct interface
with a risk management method. The army does not penalize the company for failing
to meet costs or having a slip in the plan.

9. How can severe optimism or severe pessimism influence the development

of a risk management plan?
These two let the scientists and technicians become more reactive than positive
thinkers. And, without proactive thought, no plan for reducing risk will end up like
this. This will require that crisis management be embraced as a way of life and that
prices increase.

10. How does one develop a risk management plan predicated upon needed
advances in the state of the art?

He should build risk management strategy without being positive in order not to
become a reactive thinker rather than constructive. Projects which use state of the art
appear to be more uncertain

11. Can the sudden disclosure of a risk management plan be used as a

stopgap measure to prevent termination of a potentially failing project?

Yeah, the unexpected announcement of a risk reduction plan may be used as a stopgap
measure to avoid a potentially failed project from finishing. If threats were identified
before starting on it, the project would be kill.

12. Can risk management planning be justified on almost all programs and projects?

The risk management plan is essential for all programs and projects, to my mind. If they are not
detected, removed from the beginning or even reduced their effects, the risks that cost a company
more money. Unless they have not responded from the start, these threats will be very
detrimental to the project and will will the project value.

CORWIN

20. Should a customer be informed that only projects that fit your methodology
would be accepted?

Yes they should be initially told. Though, whether they're willing to take the chance and work
within the guidelines, it's on the client because they'd been told before the proposal was
approved.