INTRODUCTION

The project scenario is based on the likelihood of risks, with probable occurrence
prior or after execution with influence on project. Analyzing the probable effect of
can be achieved through the Nine-grid matrix; assigning categorizing risks in rows
and columns based on likelihood and its effect. However, calculating the statistical
measure for likelihood and effect of matrix and meaning is solely influenced by
project and organization. Sanghera, (2010, p 204) Adopting this methodology for
the DQ project scenario (Mint Cake) will give understanding on risks effect i.e. High,
Medium& Low Priority with effects to be either +ve or ve. It is imperative for PM&
team to monitor risk effects for mitigating threats in high precedence with
assertiveness and low precedence preserved on watch list.
DQ PROJECT SCENARIO: NEW PRODUCT LAUNCH BY BAKES
CONFECTIONARIES (BC) - MINT CAKE
R.
No
1

2
3

R. description
New product launch Mint Cake is
assumed that name has not been
adopted by any franchise
Hiring new chef based on probable
availability of pastry chef.
Confectionary food alteration is based
on probable alteration by the
governments governing directive
Delay in availability or raw material in
time, required quantity& quality hence
delay in demand and supply of product

Longer period for market research as

forecasted based on longer estimated
period anticipated to reach prospects to
be interviewed. Probable delay in
product launch
PM posted to another BC. Need to hire
new PM
Probable availability of in-house taster
on schedule. Might cause delay in
schedule for product launch

Probable absence of external tasting

expert for input as scheduled. Poses

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Percenta
ge (%)

Priority

40

Medium

50

Medium

20

Low

30

Low ( Nevertheless
low, its effect on
product launch can
be rated 70% if
eventually occurs)

90

High

80

High

20

Low ( Nevertheless
low, its effect on
product launch can
be rated 70% if
eventually occurs)

50

Medium

delay in product launch

Following the above risk analysis linked to the product launch tabulated above, it is
evidently defined that Risk 5 & Risk 6 positions high with likelihood of occurrence
and effect high.
Also, we have Risk 2& Risk 8 which is medium but based on the description and if
not on watch list, the probability of its effect on the product launch will sprout high.
In addition to the above is Risk 4& Risk 7 Nevertheless low, its effect on business
can be rated 70% if eventually occur, effect will be high effect on product launch.
Furthermore, Risk 3 is low, its likelihood could be medium likewise Risk 1 with
medium probability and medium effect on product launch.
Task 1& 11
PI Matrix SHOWING RISK LINKED TO PRODUCT LAUNCH. Sanghera, (2010, p
205)
4

9 (Risk 5,

Risk 6)
High
2

5 (Risk 1)

8( Risk 2, Risk 8)

3 (Risk 33)

6 (Risk 4, Risk 7)

Medium

High

Medium

Low

1
Low

Task 111
Calculation of additional cost
Risk (R)
1
2
3
4
5
6
7
8

Additional cost to be
budgeted ()
375
3,200
400
880
2,100
675
1,200
4,200

Total Sum
13,030 ( Extra supplementary budget required
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to mitigate delay in product launch)

Task IX Alterations in the below based on likelihoods of Risk 6& Risk 7

9 Risk 5

High
2

5 Risk 1

8 Risk 2,

3 Risk 3

6 Risk 4,

Risk 8
Medium

Low
1
Risk 6, Risk 7
Low

Medium

High

Furthermore and in conclusion, and in advice to the DQ project scenario on project

progress reviewed by team on risk status, Wysocki, (2010, p 40) states effective
PM treats risk based on its effect and also as a dynamic part of every project.
However, any identified risk must have a basic standard of managing. Having a
controlled project during the performance of the PMLC is to have an established risk
management process which is subject to project uniqueness.
The major sources of risks
Internal - Size, Complexity, Novelty, intensity i.e. speed of design and construction
and physical location.
External Inflation, market conditions, cost escalation on input resources, material
and labor availability, political uncertainty and weather.
However, because projects are unique, the impact of some will be higher based on
project uniqueness and it is on this note you prioritize risk and directly related to
schedule and cost overrun.
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Reference
Hoboken, New Jersey. LEACH, LAWRENCE P. (2000) Critical Chain Project
Management. Boston: Artech House, Inc.
Milosevic, D. (2003) Project Management Toolbox: Tools and Techniques for the
Practicing Project Manager. Wiley Publishing Inc.
Project Management Institute (2008), A guide to the management body of Knowledge
Raftery, J, 2003. Risk analysis in project management. 1st ed. London, New York: E & FN
Spon
Sanghera, P. (2010). Project Management professional Guide for PMP Exam. 2 nd Ed.
Boston: Course Technology

Wysocki, R. K. (2012) Effective Project Management: Traditional, Agile, Extreme.

6th ed. Indianapolis: Wiley Publishing

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