Saturday, November 7, 2009

Chat Transcript of Simplilearn Virtual class I on Project Risk Management

Thanks to all the participants for your interests and also for making the class a successful one. Below is the chat transcript of the class that our learners can go through to have a glimpse of the class.

Mr. Krishna,PMP was the instructor of the session.

Welcome to your Web Meeting.

Manish Manekar has joined the meeting.

Srini: Hi Good Evening

Manish Manekar: Greetings!

Sougat Mitra: Good Evening Everybody.

Rakesh Kumar has joined the meeting.

Mamun Shaheed has joined the meeting.

Srini: Hi Krishna, are we waiting for more participants to join?

Srini: Thanks.

Ajay Khullar: yes

Sougat Mitra: yes

Rakesh Kumar: yes

Rakesh Kumar: which positively or, negatively influence the delivery

Rakesh Kumar: yes

Srini: Technology could turn out to be positive when we work on a new technology. In reality it could be easily adoptable by our developers and team members.

Rakesh Kumar: like the emil functionality proposed were too complex and the other solution might be good to implement

Rakesh Kumar: right

Sougat Mitra: no sound

Srini: you are audible to us.

Manish Manekar: I can hear.

Mayank: its fine

Sougat Mitra: r u still in the Slide#1

Angelo Muscaridola: I can hear too

Srini: He is in slide no 3 displayed at the bottom .

Manish Manekar: it shows slide 3 of 20

Rakesh Kumar: Is it not the same as Risk Tolerance?

Sougat has joined the meeting.

Srini: Threshold has a limit.

Yoav Reshef has joined the meeting.

Rakesh Kumar: got it

Srini: Yes

Srini: Thanks Krishna.

Rakesh Kumar: is there a way to calculate the exact probability? or, it is your expectations.

Srini: Your experience..

Rakesh Kumar: right

Ajay Khullar: yes, thats only way

Srini: Lessons learnt and historical data

Ajay Khullar: I agree with Srini.

Rakesh Kumar: right

Yoav Reshef: clear

Ajay Khullar: yes

Rakesh Kumar: yep

Angelo Muscaridola: yes

Srini: Any tax applied on the imports would increase the cost of a machinery that is to be imported.

Angelo Muscaridola: possibly weather conditions?

Srini: Nope.. Guess..

Sougat: Any Environmental Constraint.

Srini: Absolutely..

Rakesh Kumar: right, scope creep

Rakesh Kumar: one more internal risk……..other project running in the organization.

Rakesh Kumar: that might impact your project in either way

Rakesh Kumar: dependecy on resources

Rakesh Kumar: right

Ajay Khullar: if resources are working on cross projects

Manish Manekar: reorganization

Ajay Khullar: right

Ajay Khullar: exactly

Rakesh Kumar: I didn’t get your question…

Rakesh Kumar: right

Srini: Backuplocation..

Rakesh Kumar: will Accept the risk

Rakesh Kumar: Risk Acceptance

Srini: From where we should continue our operation.

Ajay Khullar: one way is to have backup location

Manish Manekar: Disaster Recovery Plan

Sougat: Establishing Disaster Recovery centre

Srini: Business Continutity Plan

Rakesh Kumar: but, we should be preventive….as someone has written backup.

Rakesh Kumar: right

Yoav Reshef: Even small company should put a contingency plan in place ? even for external risk ?

Rakesh Kumar: hmmmmm right

Srini: Krishna is right. Its not possible for all the companies.

Srini: True.

Srini: Gap in the requirements understanding.

Ajay Khullar: Krishna, are you going to send us the slides?

Yoav Reshef: So, you actualy saying that the “plan” is, if the risk happens , we stop the project ?

Ajay Khullar: k

Yoav Reshef: OK.

Srini: We cannot do away with these kind of risks, we can only minimize the impact.

Rakesh Kumar: Yoav, there are risks where you have no option rather than accepting it, example can earth quake or anything.

Rakesh Kumar: It is a concept in risk Management, where you accept the risk

Manish Manekar: Yes, clear.

Yoav Reshef: clear

Bipul Sahay has joined the meeting.

Srini: Hope you dont own a new car showroom

Mathews has joined the meeting.

Srini: Can we call it as a Logical grouping

Rakesh Kumar: yes

Srini: Yes

Ajay Khullar: yes

Angelo Muscaridola: yes

Yoav Reshef: clear

Bipul Sahay: krishna once more on control acct

Srini: For example, your project might need multiple software to procure. Instead of mentioning at each software, you can group it as a software expense. This is more for the management to monitor.

Ajay Khullar: yes

Bipul Sahay: thsnks

Yoav Reshef: Can one say that padding is contingency reserve when you cannot esstimate impact and probanility ? Where is the risk cost when you can calculate risk * prob.

Rakesh Kumar: Yoav, you put padding once you identified and quantified the risks

Srini: Based on their experience management would add some reserve.

Yoav Reshef: We found 2 risks, and clculated the value of the risk. Do we add that to project cost ? Where in the tree ? Is that the contingency reserve ?

Rakesh Kumar: yes

Ajay Khullar: yes, we will add this cost in contingency reserve

Yoav Reshef: OK

Rakesh Kumar: Krishna, it is right that management reserve is based on management experiences…

Rakesh Kumar: but it would not add etra cost if the PM has done good analysis on risks

Srini: But in practical, we come to know most of the risks only when we receive the clear requirements where as we present the cost of the project at the time of proposal.

Rakesh Kumar: hmmm

Srini: Yes, Infact based on the project manager also the management would decide to add the reserve based on their experience with the PM.

Sougat: How Control Accotnt cost is 900$

Srini: 3 * 300

Sougat: ok

Srini: Planned cost = Project + Contingency Reserve

Srini: Identify the Probability

Srini: Identify the impact

Attendee12 has joined the meeting.

Rakesh Kumar: I think, we can also add “Risk Register” after point 2

Srini: Yes. Output of point 2 is Risk Register..

Rakesh Kumar: right

Rakesh Kumar: are we going to discuss it tomorrow?

Rakesh Kumar: ok

Rakesh Kumar: good

Sougat: Which one is the favourable scenario out of the 2 cases

Sougat: right

Bipul Sahay: AC=EV-PV

Srini: You mean cost to the customer?

Bipul Sahay: ok

Srini: Budgeted Cost + Profit Margin

Sougat: Work*Resource Cost

Yoav Reshef: You add all the money that was sepnd. On planned activity ar on solving problems arise from risks.

Ajay Khullar: so far

Srini: Thanks Krishna.

Yoav Reshef: Thank you.

Srini: Have a good evening everyone.

Attendee12: Hi all

Sougat: Thanks Krishna and Others.

Bipul Sahay: thanks

Sougat: K

Rakesh Kumar: thanks

Ajay Khullar: Thanks

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