Consider the most effective usage of both qualitative and quantitative risk asse
ID: 358295 • Letter: C
Question
Consider the most effective usage of both qualitative and quantitative risk assessments methods as applied to the provided Pepsi Refresh Project. Consider the parameters of the Pepsi Refresh Project (the 2011 1-year pilot of the project).
Once project risks have been identified, the project team must analyze them to try to determine the likelihood (probability) of occurrence and the effect to the project (impact) should a given risk event occur. All risk analysis begins with qualitative analysis. To ensure accuracy and completeness, the project team should study both the risk event itself and the interactions between risk events.
Explain how risk measurement scales will be developed. Will you use a standard organizational set of measurements or define your own?
Explain how risks will be prioritized based on the defined qualitative measurement scales.
Document risk measurement scales and their meaning in the project risk register in Columns H–J. For example:
What does a “2” mean for probability? Is that 20% or 20–40%?
What does a “4” mean for impact? Is that “project fails to meet one objective” or “project exceeds budget or timeline by 20%”?
A
B
C
D
E
F
G
H
I
J
Risk No.
Risk Name
Risk Event Description
Risk Impact Description
Risk Type
Risk Source
Risk Trigger
Impact Score
1 to 5
Prob. Score
1 to 5
Risk Factor
P*I
1
Sales Decline
Not having the direct brand tie-in to project decreased odds of driving sales
Brand declined to quantify the project's effect on sales
Financial
Project Success
2
Participant Behavior
There is unwanted or inappropriate behavior on website that brings negative views about the project cause
Resulting in negative influences on potential grantees and/or interested voters to support the cause
Reputation
Environment
3
Scattered results
The program Supports numerous organizations across various issues/geographies so ideas are all over the place.
Makes it hard to concentrate on an impact of a specific issue
Strategic
Project Success/Reputation
4
Internet
Disruption of Internet services prevents idea submissions and voting
Decreases the participation level engaged in the project
Operational
Technology
5
Nonuser-friendly website
Target audience finds the website user interface confusing
If participants find it hard to interact with the website, they may go away and never try again
Operational
Technology
6
Unsatisfied Vendors
Vendor(s) may not support ideas presented by participants
Loose vendor support
Reputation
Environment
7
Project testing produce unsatisfied results
The board is not satisfied with the results after analyzing data from the 1-year pilot
The board decides to put a halt to the program
Strategic
Project Success
8
Insufficient Resources for traditional marketing
Printing advertisements can be very costly
Resulting in not having enough people to distribute this type of advertisement
Financial
Staffing
9
Participants being treated fairly
Organizations participating in project feeling that votes are not properly/fairly being collected
Being accused can cause claims fraud out of the contest
Compliance
Reputation
A
B
C
D
E
F
G
H
I
J
Risk No.
Risk Name
Risk Event Description
Risk Impact Description
Risk Type
Risk Source
Risk Trigger
Impact Score
1 to 5
Prob. Score
1 to 5
Risk Factor
P*I
1
Sales Decline
Not having the direct brand tie-in to project decreased odds of driving sales
Brand declined to quantify the project's effect on sales
Financial
Project Success
2
Participant Behavior
There is unwanted or inappropriate behavior on website that brings negative views about the project cause
Resulting in negative influences on potential grantees and/or interested voters to support the cause
Reputation
Environment
3
Scattered results
The program Supports numerous organizations across various issues/geographies so ideas are all over the place.
Makes it hard to concentrate on an impact of a specific issue
Strategic
Project Success/Reputation
4
Internet
Disruption of Internet services prevents idea submissions and voting
Decreases the participation level engaged in the project
Operational
Technology
5
Nonuser-friendly website
Target audience finds the website user interface confusing
If participants find it hard to interact with the website, they may go away and never try again
Operational
Technology
6
Unsatisfied Vendors
Vendor(s) may not support ideas presented by participants
Loose vendor support
Reputation
Environment
7
Project testing produce unsatisfied results
The board is not satisfied with the results after analyzing data from the 1-year pilot
The board decides to put a halt to the program
Strategic
Project Success
8
Insufficient Resources for traditional marketing
Printing advertisements can be very costly
Resulting in not having enough people to distribute this type of advertisement
Financial
Staffing
9
Participants being treated fairly
Organizations participating in project feeling that votes are not properly/fairly being collected
Being accused can cause claims fraud out of the contest
Compliance
Reputation
Explanation / Answer
Answer :
The risk measurement scales will be developed here based on the rating recieved by multiplying the probability rating with the impact ratings. Thus the product of impact rating and probability rating will create a risk measurement scale for the given project and based on which the given risks will be prioritized and the actions will be taken for the same. We will use our won scale for this as by multiplying the impact score with the probability score.
The risks will be prioritized based on the rating recieved by multiplying the impact rating with the probability rating. The product of impact rating and probability rating will be sorted in decreasing order and the top rank risks will be the most priority risks and low ranks risks will be the lowest priority risks.
Document risk measurement scales and their meaning in the project risk register in Columns H–J.
For example:
“2” mean for probability is 20% – 40%. because the probability rating is from 1 to 5. Probability generally ranges from 0 to1 ,
thus 1 probability means = 0% to 20%, (0.0 to 0.2)
2 probability means = 20% to 40% (o.2 to 0.4)
3 probability means = 40% to 60% (0.4 to0.6)
4 Probability means = 60% to 80% (o.6 to 0.8)
5 Probability means = 80% to 100% (0.8 tyo 1.0)
“4” mean for impact = “project fails to meet one objective” Because 4 rating is on higher side rating. T=Higer side rating can be given when the risk is high like one of the objective was missed in the project.