Risk Management Questions

1210 words 5 pages
develop a methodology for quantifying risks, or should each situation be addressed individually? Can we have both a quantitative and qualitative risk evaluation system in place at the same time?

Yes, a quantitative and qualitative risk management system can be in place at the same time. Since the Space Shuttle Program is so large and complicated, it would be in their best interest to incorporate both quantitative and qualitative risk management evaluations together. Alone, neither system is sufficient in analyzing nor predicting all the risks involved in the program. It is the flaw of a qualitative system in that it relies too much on human opinion and instinct instead of concrete data, while a quantitative relies too heavily on
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How do you as a project manager make sure that senior management understand the ramifications?

There are a number of ways a project manager could make sure that senior management is notified and understands the impact of risks when they are identified. They are as follows…..

- For identified risks, solid hard data should be gathered and translated into easy to understand format and terminology. Numbers and facts are easy to understand and are clear and leave very little to personal interpretation.

- Modeling and simulation should be applied to the data to make sure that it is clearly demonstrates the probabilities and impact that the risk presents. -A documentation process should be developed and clearly established to prevent data from being altered.

-A solid communication line should be established between those who are developing the data and senior management for when significant risks are identified. Middle men and middle management could potentially be eliminated from this process. This will prevent the data and risk from being minimized or altered.

5. How were the identified risks quantified at NASA? Is the quantification system truly quantitative or is it a qualitative system?

NASA did have a quantified system for risk management, but unfortunately when making the decision about whether to launch or not in the colder weather (below the

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