During the initiation stage, the project manager aligns the project's risk management approach to ABC Company's risk management policy. As a result, the project will use two risk registers, one for ABC Company's risks and one for external supplier risks.
Is this an appropriate application of the 'tailor to suit the project' principle, and why?
Tailoring the project's risk management approach to suit the project's environment is crucial. In this case, using two separate risk registers allows the project to effectively handle internal company risks and external supplier risks according to their specific contexts. This distinction helps ensure that both internal and external risks are managed appropriately, taking into account the different environments and policies associated with each. Therefore, this approach aligns well with the principle of tailoring to suit the project's environment.
Correct Answer B
Its B. and to answer mogasser, its good to have two risk registers per the below, "10.3.6 Commercial considerations. In a commercial context there may be a need for more than one risk register as some project risks could be unique to only one party, with good reasons for them not to be visible to the other party. Where a joint risk register is used, care should be taken to establish whose risk it really is, and the risk owner appointed accordingly. For example, on a fixed-price contract any cost overruns will impact the supplier’s business case, but timescale overruns will typically impact the customer’s business case."
Ref. 10.3.1 P.123 While I don't understand exactly why the organizational policy would imply having a different risk register for suppliers (confidentiality, maybe), it's clearly stated that we need to align with organizational and other policies/processes.
refer 10.3.6 Page 125 In a commercial context there may be a need for more than one risk register as some project risks could be unique to only one party, with good reasons for them not to be visible to the other party.
During the initiation stage, the project manager aligns the project's risk management approach to ABC Company's risk management policy. As a result, the project will use two risk registers, one for ABC Company's risks and one for external supplier risks. Is this an appropriate application of the 'tailor to suit the project' principle, and why? A. Yes, because the risk management approach should comply with the supplier's needs. B. Yes, because project controls should take the project's environment into account. C. No, because all three stakeholder interests need to be represented effectively on the project. D. No, because a single risk register should be used to record risks to the project.
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