Question

2. Table below shows the original time and cost estimate for Activity A and the probability and impacts of 2 identified risks (Risk 1 and Risk 2) for it. Also, the results of the risk response planning and new ratings for risks have been provided. Complete the table and calculate time and cost savings due to risk management (12 Marks) Activity Estimating Form Activity: Work Package XYZ Cost in $ Initial estimate (before risk analysis) Time in days 50 Risk identification and analysis result is: Expected monetary value Time in days Impact Original risks Probability Time in Cost in $ days Risk 1 / 20% 30 180,000 Risk 2 L 80% 15 80,000 Expected monetary value of risks Total initial estimate for the activity before planning risk responses Risk response planning results in: Cost in $ Time in days 2 3 24,000 30,000 1 Mitigation Strategy 2 Total added for risk responses Expected monetary value Time in Cost in $ days Impact New ratings for risks Probability Time in Cost in $ days Risk 1 5% 20 160,000 Risk 2 40% ] 10 50,000 Expected monetary value of risks Total final estimate for the activity after planning risk responses Savings due to risk management

Answer 1

Activity Estimating Form Activity A Work Package XYZ Time in days Cost in $ Initial estimate (before risk analysis) 50 640000 Risk Identification and analysis result is: Impact Expected Monetary value Original risks Probability Time in days Cost in $ Time in days Cost in $ Risk 1 20% 30 180000 6 36000 Risk 2 80% 15 80000 64000 Expected monetary value of risks 18 100000 Total intial estimate for the activity before planning risk responses 68 740000 Risk response planning results in: Times in days Cost in $ Mitigatioin strategy 1 2124000 Mitigatioin strategy 2 3 30000 Total added for Risk response 5 54000 Impact Expected Monetary value New Rating for risks Probability Time in days Cost in $ Time in days Cost in $ Risk 1 5% 20T 160000 11 8000 40% 10 50000 20000 Expected monetary value of risks 5 28000 Total Final Estimate for the activity after risk Planning 60 722000 savings due to risk management 8 18000 Risk 2

Expected monetary va etony valves I cost Time Probability of doº 80% Impact Time' ) Cost 30 180000 adox 180000 100 36,000 15 | 80000 -20x30 Too = 6 days - 15x80 10 = laday 5-80X80000 1000 = 64000 6+12 = 18 days = 10000 4 Prolet Risle has Trespalt ts days Ę $1000w on activity, E Mvz contingency value to activity Add contingerey value to actkity (Intfal estimate) Intial estimate Time cost 500 61401 BUD contingency +18 + 100 cm Estimate bebole Risle Response 68 73401 OVO planning Time Mitigation Shategy! - Palme Mitigation Strategy 2 5 5400 –Mines) Cost QUOD 30,000 Time C Cost to be required for activity to mitigate Riste.

New Rating Rial - Risk Response pleuning : EMN Timel cost I probability Impact of a day days) e 18 TO ni 8000 do 160000 20000 40% | 10 50000 5 - 28000 - ☺ 5% - Before Risle Response : (Actrity coith Riples) Time (days) Costo (1) Activity After Risic Response 740000 6 sdays Mitigation Meased. Time (days cost Gu0000 Inttal estimate 54000 → ® Mitigation lost Risl cost 28000 60 days 722000$ & Total facings: 7h007000s 68-60 - 8days - 18000$