Essay on Altex Corporation

1560 Words Jul 26th, 2013 7 Pages
Week 4 Assignment: Altex Corporation
David C. Webster
BUS 697: Project Management Strategy
Professor: Dr. Jaclyn Krause
July 22, 2013

Risk is inherent in any project today, and project managers need to constantly assess risks and continually develop contingency plans to address them. In project management risk management plans are an essential part of project planning, and can often time occur well into the execution phase of a project. In the case of Altex Corporation the project manager is faced with the decision to develop a risk management plan on his own, or not at all. In this paper we will explore and summarize the case surrounding Altex Corporation and answer a few questions regarding a risk management plan, which are: Why
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However, if the Army decided to cancel the program prematurely then they could use the risk management plan to try and keep it alive.
Now that we have a little better understanding of the situation surrounding the Altex Corporations contact award. Let’s begin addressing some of the questions stated in my opening statements. First, why was a risk management plan considered unnecessary? There are a number of reasons why the project sponsor feels that a risk management plan is not necessary. One reason why is that it isn’t required by the contract stipulations, and he feels that if the Army knew all of the risks up front it would probably kill the project. Further the sponsor believes that the best that Altex could hope for is to meet 60-70% of the specifications. The risk management plan might highlight that point or even show a lesser completions percentage should one of the risks occur.
The second question to be answered is: Should risk management planning be performed in the proposal stage or after contract award, assuming that it must be done? Risk management plans start with a plan that defines the scope and processes to identify, assess, and manage any risk that could impact the execution of a project. Here we are defining the strategy to manage these risks in such a way that there will be minimal impact on time, cost, and quality/performance (otherwise known as the Triple Constraint). Since portions of

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