Question

he Woolong Company produces high-end vacuum cleaners and has hired you to oversee the development and release of their latest product. A preliminary project initiation meeting will result in the identification of the project sponsor, selection of a project manager, and creation of the project charter. A manager in the production department who knows you are taking a college project management course asks you to prepare a report to help them prepare for the meeting by answering the following questions:

What are the best ways to manage project risks as well as opportunities during project execution?

How do they update and analyze old risks as well as new risks while undertaking the project?

What business opportunity might project completion create?

What is the potential financial impact of the project?

Answer 1

Manage project risks as well as opportunities during project execution

The most effective way to manage project risks and opportunities is to use project risk management processes. Plan risk management defines how the risk management activities for the project will be conducted. Identifying risks is the process of identifying risk, whether positive or negative, and determining the source of that risk as well as the characteristics of that risk. Project risks should be managed by keeping an open line of communication during the project. Risks should be analyzed to determine if they can be turned into opportunities that are beneficial. When analyzing the risks, they should also be prioritized so that the risks with the highest chance of occurring and the highest impact are dealt with first.

Update and analyze old risks as well as new risks

All risks should be logged in a risk register and monitored throughout the project. If there is a change then it should be documented and if a new risk arises it should be added to the register. There should be a project team member that will be in charge of the register and keeping it current. This will allow the risks to be tracked so the project can stay on its intended timeline.

Business opportunity

When projects are completed, opportunities can be created. Opportunities within the company can be an increase in trust within the project team. The project can be reviewed and learned from on how to make processes more efficient and save time and money in the future. From outside the company the opportunities may present as additional contracts for the company or a higher customer satisfaction that will result in repeat business. Companies that have customers vouching for work are more likely to gain more business through those referrals.

Potential financial impact

The project will initially start off as an expense for the company. Once the project is completed the company should be able to recoup the costs by the end of the fiscal year or other predetermined payback period. The project will also have the ability to produce future revenue with the new product line.