HW3.docx - Homework 3 1 In Homework 1 you defined a project...

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Homework 3 1. In Homework 1, you defined a project of interest to you and also listed some possible risks. Then, in Homework 2, you created a list of risks in a spreadsheet, showing the risk ID, risk event statement, and impact statement. a. For each risk on the list, develop risk event drivers and impact drivers. Use the methods presented in class (Smith & Merritt, Chap. 5) to develop drivers that are as factually precise as possible. b. Record the risk event drivers and impact drivers on your risk-tracking spreadsheet. Note: It is convenient to use a separate "sheet" or "tab" in your spreadsheet for the following item: risk event statement, riks event drivers, impact statement, and impact drivers. Do this as follows. First create a new sheet and "link" its first column to the risk ID column from the first sheet. Then, transfer the risk event and impact statements to this new sheet. Finally, create two more columns for recording the risk event drivers and impact drivers, respectively. c. For each risk on the list, quantify the total loss. Either use a direct quantitative scale, or use a qualitative scaling system and then calibrate, as described in class (Smith & Merritt, Chap. 5). Record the total-loss values as a separate column on your risk- tracking spreadsheet. d. For each risk on the list, estimate the risk event probability and impact probability. Record these values on two separate columns on your risk-tracking spreadsheet. Then, add another column to calculate and display the risk likelihood for each risk. Finally, add yet another column to calculate and display the expected loss for each risk on the list. Solution: 1
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The risk-tracking spreadsheet is shown as below. It is easy to find the risk event drivers and impact drivers for the problem a. from the spreadsheet. I separate it into two form because of the space limitation.
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