Scenario
A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team
Manager after taking some time to understand the requirements of the project. A contract for their services has
been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This
contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a
schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have
occurred by now.
The Engineering Manager was made aware of this requirement but when asked he reported that he has
received no communication from the photographer. The Project Manager has tried to call the photographer and
has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and
prioritizing other clients’ work. If Portraits ltd do not deliver on schedule the project will be delayed and the
expected benefits will be reduced.
The contract is to be reviewed and Portraits Ltd reminded of their agreement.
The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also
producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early
release of a competitor’s calendar may weaken the impact of the MNO Manufacturing Company calendar,
thereby reducing the anticipated benefits of the Calendar project.
Which 2 statements should be recorded under the Risk tolerance heading?
A.
Corporate management’s threshold level of risk exposure is any combination of high and very high impact
and probability.
B.
The Project Board’s threshold level of risk exposure is any combination of medium, high and very high
impact, with high and very high probability.
C.
The Project Manager’s threshold level of risk exposure is low impact and probability.
D.
The cost of all fallback plans must be contained within the project’s tolerance.
E.
The risk budget will have a tolerance of +/~ 10%.