You are the project manager for the launch of a new product Mint Cake at Bakes C

You
are the project manager for the launch of a new product Mint Cake at Bakes
Confectionaries (BC). The WBS schedule and budget for this project are ready.
The budget cannot be finalised unless you have the risk responses and related
actions planned and cost requirements identified. You understand that
visualising the risks registering them and being ready with responses always
enhance the chances of success. This involves developing a realistic risk
register. The time required to launch Mint Cake is one of the most important
objectives of the project and therefore you need to analyze the impact of
prioritising the risks on this objective.The
risks for the project are as follows:
Risk
No.
Risk
Description
R1
A new
name will be required if legal permission for Mint Cake is not obtained.
R2
The
pastry cook may not be available to make the Mint Cake; hence a new cook needs
to be recruited.
R3
Regulations governing the manufacture and sale of confectionary foods
may be changed by the government.
R4
Raw
material needed for Mint Cake is not available on time in the required quantity
and quality.
R5
Market
research may take longer time to complete than planned because the time to reach
the prospects that need to be interviewed is longer than anticipated. This in
turn may delay the launch of the Mint Cake.
R6
The
project manager for the Mint Cake project may be transferred to another project
of Bakes Confectionaries. Hence there will be a need to get a new project
manager.
R7
The
in-house tasting expert may not be available on the scheduled date to provide
inputs which would cause delays in the schedule for the launch of the Mint
Cake.
R8
The
external tasting expert may not be available on the scheduled date to provide
inputs thereby causing delays in the schedule of the launch of Mint Cake.
The
following table shows the rise in cost due to occurrence of risks related to the
schedule:Risk
Probability of occurrenceRelative impact on scheduleCost
of activity(in
pounds)Rise
in cost due to occurrence of riskR10.40.5150025%R20.50.93200100%R30.20.4400010%R40.30.7220040%R50.80.9600035%R60.70.8150045%R70.20.7800150%R80.50.82100200%For risks related to the above table the organisation has determined
the following as the PI matrix rating scale:Tasks:a. All required raw material
is now available.b. Considering the business
value and criticality of the project management has committed to keep the
project manager on this project and has reassured the stakeholders that he will
not be transferred to any other project until Mint Cake is launched. In
addition the probability of the project manager leaving the company is
negligible: 0.1.c. The in-house tasting
expert has been having medical problems and is likely to take leave from work
for medical reasons. Therefore the probability that the in-house tasting expert
may not be available on time has increased to 0.8.Evaluate the impact of the overall risk categorisation (high medium
low) on the basis of these changes. How will these changes impact the project
budget and as a project manager what will be your course of action for the top 4
risks?