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Case Study Altex Corporation

This case study discusses the importance of developing a risk management plan for the Altex Corporation project. While the project sponsor felt risk management was unnecessary due to the flexibility in costs and schedule, the document argues that creating a plan at the bid stage helps contractors demonstrate they understand potential risks. Involving relevant stakeholders like the client ensures all risks are considered and the objectives are shared. A balanced perspective is needed to avoid understating or overstating risks. Overall, developing a risk management strategy can help identify issues, improve project outcomes, and increase stakeholder satisfaction and chances of success, especially for complex projects.

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144 views2 pages

Case Study Altex Corporation

This case study discusses the importance of developing a risk management plan for the Altex Corporation project. While the project sponsor felt risk management was unnecessary due to the flexibility in costs and schedule, the document argues that creating a plan at the bid stage helps contractors demonstrate they understand potential risks. Involving relevant stakeholders like the client ensures all risks are considered and the objectives are shared. A balanced perspective is needed to avoid understating or overstating risks. Overall, developing a risk management strategy can help identify issues, improve project outcomes, and increase stakeholder satisfaction and chances of success, especially for complex projects.

Uploaded by

gillraman1112
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CASE STUDY

ALTEX CORPORATION
SCM 120-204
Project Leadership

Submitted To: Prof. Chhavi Sharma


Submitted By: Ramandeep Kaur
Student Id-A00182482

Ans 1. As the project sponsor saw that the project could spend as much as required and delay the
timeline without any effect, a risk management strategy appeared to be unnecessary. In addition
to that, the sponsor clarified that the Army was not so focused on risk management as it was on
getting follow-up contracts and reaching minimum acceptable limits (60–70% of specifications).
Ans 2. Risk management planning ought to be manifested before proposal approval and after
contracting. Exact cost and time estimate at the bid stage makes the contractor look like he is
aware of potential risks and has measures that will eliminate the dangers. It becomes crucial
(both) for the project execution and for its success after the contract award.
Ans 3. Often customers require to conduct risk assessment and risk management plan
development as an element of good project management which does not necessarily require to be
stated in the statement of work. That is particularly the case with large and high-risk projects
such as defence contracts.
Ans 4. However, Altex may develop a risk management plan even if the project's funding sources
were internal ones only as its main goal would be to discover all possible obstacles, reduce risks
and make sure the project succeeds. Internal finance needs risk management as well.
Ans 5. If the project manager devises a risk management strategy without involving others, it
will likely not be as efficient as it should not have included all possible risks and
views. Involving relevant parties like client is vital for proper risk assessments and mitigation.
Ans 6. Yes, the client should be involved in the process of developing a risk management plan as
this ensures that the contractor and the client have the same objectives, there is an open
communication, and thus the project succeeds.
Ans 7. The Army can appreciate the proactive risk management and project success of the
contractor this could be possible if they were provided with a risk management strategy at the
initial stage of the R&D activities. Also, it could enable easier communication between the
contractor and the Army, so there is a greater understanding of the tasks and approaching
solutions.
Ans 8. Even if cost overruns along with schedule slippages are permitted, still a risk management
approach is useful since it helps to recognise, appraise, and minimise risks which reduces their
impacts. On the one hand, embracing the cost overruns and schedule slippages as nothing but
normal might eventually weaken control measures.
Ans 9. Strong optimism can lead to undervaluation of potential hazards or their overlooking
whereas strong pessimism may result in overestimation of dangers or overly cautious
behavior. Both ends might jeopardize the transparent creation of the risk management strategy
that will not go beyond the average. When making a risk management strategy, having a
balanced perspective is important taking into consideration different possible outcomes.
Ans 10. Including trouble shooting, probability assessment, and solution formation as outcomes
for meeting the advancements required in the state of the art is what creating a risk management
strategy based on the state-of-the-art is about. To address the risks from technical uncertainty this
may involve working with subject matter experts, intensive research, and creation of alternative
arrangements.
Ans 11. Risk management proactivity is possible to be visible including a risk management
strategy and the consequent survival of the project from the project termination. It satisfies the
client, that the contractor knows about the problems and find the solutions.
Ans 12. Almost every single programme or project can, if not all, take advantage of the risk
management planning and this is particularly true of the complex initiatives, uncertainty, and
possible consequences. Risk management helps in identifying, evaluating, and managing risks
which in turn enhances the project outcomes, stakeholders’ satisfaction, and the chances of
success.

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