Topics on management, leadership and yes life skills
Subscribe to this blog
Follow by Email
Search This Blog
Risk and Risk response questions in PMP and RMP
Here is another question posted by one of the participant:
Hi Kavita... one more query...regarding Risk Response Plan.
If I find a risk of missing deadline...and to avoid that I work extra time or hire few temp contractors to complete the work within deadline. So is this case of AVOID risk or ACCEPT risk? I did avoided the risk by adding more time/resources. However I also accepted that risk will occur and hence hired more people.
From what I understand is ACCEPT is you don't take any action and wait for the risk to happen and use contingency plan. So in that case I accepted risk and my contingency plan was to hire more people.
But at the same time AVOID risk says, take action and eliminate risk. So I eliminated risk by hiring people.
just too much confusion :)
So what is the answer to above question?
This is what I posted back..
A risk has some probability and some impact - I'm sure you know that..
Now lets understand the risk responses in detail:
Accept - Do Nothing
Avoid - Select some other alternate path so that risk probability becomes ZERO.
Mitigate - Try and bring the probability and/or impact down to minimum acceptable range
Transfer - changing the ownership of risk. The risk probability and impact remain same.
Now in your scenario - just think again by given definition and respond as which response strategy did you select..
So what do you think of the Answer now?
Here is another piece of the puzzle (My answer - 2nd reply):
In your scenario - adding resources to be on time due to risk of delay, you used MITIGATE as the risk response.
You reduced the probability of delay be some percentage by adding resources but the probability is still not reduced to Zero (so avoid is out). Transfer is out since you did not outsource.
Accept is do nothing. You did something (so accept is also not the valid choice)
The only good choice to select here is Mitigate.
Hope this answers your confusion..
The Response :)
yeah.. much better. I thought I was eliminating risk and thinking of AVOID. But actually I was only reducing the probability/impact by adding more guys in the team and was trying to reduce the risk.
wish there was 'bring a friend' during PMP exams :)
A critical path is the longest path in the network. Each node which falls under critical path has
zero or negative float (Slack).
Now how do we calculate critical path??
I’ve seen various illustrations having different way to
calculate CPM, few are:
-The project starts on day 1.
-The project starts on day 0.
the approaches give same results, however I liked the day 0 approach better,
its simpler, easy and lesser room for errors.
There are 3 steps to calculate CPM:
1. Forward Pass - To calculate the Early Start(ES) and Early Finish(EF) of node.
2. Backward Pass - To calculate Late Start (LS) and Late Finish(LF) of node.
3. Calculate Float and Thus CPM.
The Forward Pass:
We start from first Node or Start node.
The works begin on day 0.
We’ll fill up information in
In forward pass, we calculate the Early Start and early
finish date of activities.
The activity starts on day zero, since A activity duration is
for 5 days, the early finish…