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Rita Risk Management Q 25 – Avoid Risk

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bs_pani
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Rita Risk Management Q 25 – Avoid Risk

Postby bs_pani Mon Oct 20, 2014 7:40 pm

You were in a middle of a 2 year project to deploy new technologies to the field officers across the country. A hurricane caused power outages just when the upgrade was near completion. When the power was restored, all the project reports and historical data were lost with no way of recovering them. What should have done to prevent this problem?

A. Purchase Insurance
B. Plan for Reserve Fund
C. Monitor the weather and have contingency plan
D. Schedule the installation outside the hurricane session

Ans – C

Explanation – The risk is the loss of data due to power outage. Purchase insurance is not related to preventing the problem. It transfers the risk (I agree). Creating a reserve fund is acceptance of the risk, and would help address the cost factor after the power failure, but would not reduce the probability or impact of it ( I agree). Avoiding the hurricane by scheduling the installation at a different time reduces the power outage risk, but could have a large impact on the project schedule and so is not the best choice ( I DO NOT agree). The better choice is to monitor the weather and know when to implement the contingency plan ( I DO NOT agree).

My argument towards answer D is, avoid is the best practice that should take precedence over mitigate and transfer or accept.

The impact was very high ( as we lost all the data ) and we know that the probability was very high here as we know there is a hurricane coming as we are in the hurricane session. While performing the Quality Risk Analysis option C should top the list because of the reason I stated here.

The schedule could have drafted accordingly taking the hurricane session into consideration

So we should go for “avoid” option D instead of C.

Experts – Please put your understanding.

Cheers,
Bha ba ni
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saket
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Re: Rita Risk Management Q 25 – Avoid Risk

Postby saket Tue Oct 21, 2014 5:18 am

Is hurricane session predictable ? do we know this in advance that on this month or date it will occur? if yes the D make sense if not... this is not a available option
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umeshbww
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Re: Rita Risk Management Q 25 – Avoid Risk

Postby umeshbww Tue Oct 21, 2014 3:20 pm

Hurricane can happen anytime - you can't predict it months in advance (I live in USA - where hurricane occurrence is common in South/ Mid-West part of USA). D is not valid answer. Normally project runs for few months to couple years = hope this answers your doubts.

Only option C is valid.
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bs_pani
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Re: Rita Risk Management Q 25 – Avoid Risk

Postby bs_pani Tue Oct 21, 2014 3:58 pm

@ Umesh

Brother from another mother :) Could you please pass on your contact details. You are our (if not mine for sure) inspiration by completing the PMP cert within 6 weeks that too scoring five P.
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Re: Rita Risk Management Q 25 – Avoid Risk

Postby bs_pani Wed Oct 22, 2014 3:05 am

If we know the exact date / month of an event (hurricane) then that's no more be a risk, right?
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saket
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Re: Rita Risk Management Q 25 – Avoid Risk

Postby saket Wed Oct 22, 2014 5:02 am

1. If we know with probability, like this can happen in month of Jan or it will not happen then this is risk.
2. If you know it will happen in Jan it is not a risk.
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bs_pani
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Re: Rita Risk Management Q 25 – Avoid Risk

Postby bs_pani Wed Oct 22, 2014 5:11 am

Agreed.

If there is a probability that means it's uncerta and its a risk. And if it's happening 100% for sure then it's an event and its not a risk.

Labour day is a holiday and the productivity will be 0 on that day. It's not a risk.
People could take a leave during labour day long weekend and productive could be less than 100%. It's a risk.

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