A new project manager has been assigned to work on an ongoing project. When checking the project documentation, the project manager realizes the risk register items do not comply with the contracted scope. The project manager wants to use an objective method to determine the key project risks and develop response plans.
What action should the risk manager propose?
Monte Carlo analysis is an objective and widely used quantitative method for determining key project risks. This statistical technique involves simulating various project scenarios to predict the likelihood of different outcomes and helps in developing effective risk response plans. It provides a probabilistic understanding of potential project risks, making it suitable for the project manager’s needs. Hiring a risk expert (Option A) does not directly address the immediate need for an objective method, while reviewing lessons learned (Option B) and performing an earned value analysis (Option D) are not sufficiently targeted towards identifying and analyzing project risks.
A is the right answer
Risk assessment is done in Quantitative Analysis in order to determine the potential risks that a project has. In this case we can use EMV, Sensitivity Analysis, Monte Carlo simulations, etc. Hire >> never an option Lessons Learned >> useful for insights and context, not to analyze information EVA >> comparison actual schedule/cost vs baselines