OGL 320: Foundations of Project Management

Module 6 Risk Management Worksheet

Use your own words; however, when you quote or paraphrase, remember to cite per APA
Standards using information in the APA Tools and Template Area.

Be sure to proofread your work for spelling or grammatical errors because repeated errors will
result in earning fewer points.

A paragraph is 4-5 sentences.

Section 1: Case Study

After choosing ONE of the case studies, “Altex Corporation” or “Luxor Technologies” presented
in this week’s module learning materials. Put your problem solving skills to work and identify
the challenges or issues that are addressed in your chosen example. Use the end questions on the
reading as a basis for critically assessing the case study.

1) Why was the risk management plan considered unnecessary.

I would go further than saying the risk management plan was considered uncnecessary, and say
that it was considered a liability. Unfortunately, with government contracts, this conversation is
not far from the truth. Many contracts are awarded without much oversight through online
sources with minimal vetting processes. As a company operating with little to no oversight and
no mandated risk management plan, the incentive for doing one would ultimately prove to show
their true projections as impossible to accomplish or more expensive than they are budgeted.

2) What are at least THREE (3) key “take aways” you can derive from this talk as you further
develop your project management skills?

It is a recurring theme to see companies more interested in developing contracts and business than
creating sustainable plans of operating. My first takeaway is that you should not undergo a project
without first being aware of the expectation of the role, budget, and profitability. Second, you should not
work in an environment that is willing compromise good business practices for a quick buck. My final
takeaway is that while you may find yourself in a situation where parties are behaving unethical or against
the interests of the company, you still have a moral responsibility to correct the situation or remove
yourself from it.

Section 2: Reflection
After viewing the “Dare to Disagree” clip, discuss Margret Heffernan’s message and what it
means to organizations.

1) How does this message apply to projects in general?

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 Studies have show that diversity in the workplace is extremely important.The more unique
skillsets, and points of view you have the more likely you are to have a successful team.
Considering 85% of industry professionals admit to having issues they are afraid to address,
it goes to show that we are not alone in our concerns. Having this information should
incetnize to have the confidence to express our irgnorance in order to seek the answers we
need to lead a project successfully.

2.) How does this message apply to risk management in particular?

It is important to have diverse perspectives when undertaking a project. As Ms Heffernan

said, it is a biological instinct to want to work with like minded people. We have to go
against the compulsion that leads us away from conflict. Productively disagreeing with
our partners when going into a project is a great way to start an early risk management
plan. Many pitfalls will reveal themselves if there is an open dialogue with many
different perspectives on implementing a plan.

3.) What are at least THREE (3) key “take aways” you can derive from this talk as you
further develop your project management skills?

It is difficult to only think of three key takeaways. When considering the information
provided demonstrated that the knowledge to prevent so many deaths was available for
twenty-five years before being acted upon. The number one takeaway for me is not to let fear
rule your decision making. Many people accept the status quo even when they know there is
something wrong because they are terrified of the conflict it would bring to address it.
However, we saw in the video that not addressing these concerns can have even large
impacts. Second, surround yourself with people that think differently than you. We each are
able to contribute a different perspective. It is more comfortable to limit yourself with
likeminded people, but only through conflict with outside perspectives can we grow. My
third takeaway is that, “you don’t know what you don’t know.” Accepting that you have
blindspots caused by personal bias and your own pattern of thinking is key to understanding
who you need to work with to grow on a project.

Section 3: Managing Risk

Answer the following questions after reading the assigned textbook chapters.

1) What is a project manager’s best course of action if it becomes clear that a project will be
unable to produce the deliverables by a sponsor’s deadline?

When a project is not meeting a sponsor’s deadline it is important to address the situation with a
sense of urgency. Prepare an updated timeline with any possible disruptions to deliverables and
any possible added costs. Once you have this information it is your responsibility to inform the
sponsor immediately.

2) What does it mean to manage risks using rapid-results initiatives?

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 When there is a rapid-results initiative the time frame is often condensed to fewer than one-
hundred days. The goals are often hyperfocued and requires many groups of people to work
together quickly. As a result, risks need to be assessed quickly. These kinds of plans need to
be planned for to the letter to ensure that each aspect of the project is on target. There are
benefits to this approach as it inspires outside the box thinking and encourages teamwork.

3) What does it mean for a project manager to get into a sunk-cost trap?

The sunk-cost trap is the business equivalent of the gamblers fallacy. The belief that if you
just spend a little more time or money on project that cost you a lot of money, it will then pay
off. It is key to know when you are chasing bad money with good. The cost can be even
higher when considering the opportunity cost of not moving on from the project. Allowing
yourself to keep chasing a project that is not cost effective or paying off will also prevent you
from moving on to a more successful project.

4) What are some strategies for avoiding the sunk-cost trap?

The number one strategy for avoiding the sunk-cost trap is having clear budget guidelines for
an innitive. Facts not feelings is the best approach when we become emotionally involved in
a project. Keeping to the numbers in the budget is the best way to prevent yourself from
allowing for the possibility of falling into a sunk-cost trap. The pychological component that
will allow you to approach the situation correctly is removing your ego. It is difficult to
admit when we make mistakes, but looking at these gaps as learning opportunities can
prevent us from becoming imbedded in a failing project.

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