Question 2 a. Produce a risk register template showing all the essential headings and evaluate the...

Question 2

a. Produce a risk register template showing all the essential headings and evaluate the significance of the Earned Monetary Value and the Risk Response Owner in the overall scheme of developing Risk Management Plan

b. A company is in the process of inventing an unmanned vehicle for the defense industry. There is serious disagreement on whether the company should move straight into commercial production or they should first build a prototype. The available data indicates that building the prototype will cost the company $400,000 with a failure rate of 5% and an impact of $10,000. If the prototype succeeds there will be no impact. However, the data for not building the prototype and moving straight into commercial production shows a failure rate (probability of failure) of 95% with an impact of $4,000,000.

Using expected monetary Value (EMV) and a Decision Tree as a project manager:

Construct a Decision Tree for the above case
Critically analyze the options available and advice on the best option based on the data provided

Expert Solution

orchestra answered 1 year ago

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