Risk Management Case Study

1.2 Risk maturity

Risk can be defined as any unexpected loss in any event that can be caused by nature example Hail Storm, floods, that can cause a risk in a project that is done in an outside environment like a construction project to build a house.

According to (Vaughan, 1997) defines risk as a condition of the real world in which there is an exposure adversity. More specifically, “Risk is a condition which there is a possibility of an adverse deviation from a desired outcome that is expected or hoped for.’ (Tuner, 1953)

(PMBOK, 2003) Defines project risk management as the knowledge area that includes the processes of showing risk management planning, identification, analysis, response planning, and controlling risk on a project.

For an

The Project RMM software provided with this book will allow its user to assess the capability of the risk management process being applied on any project. It will also allow capability improvements to be assessed and for the capabilities of different projects to be compared. However, assessing risk management capability is not a simple task.

Figure 1.1 Risk maturity model levels Adapted ( Martin, 2018)

The definitions of each level of project risk management capability are:

Level 1 – Naive

According to the case study, “Naïve means that an organization does not feel the need for managing risk and does not use structured approaches for this purpose.”

Level 2 – Novice

According to the case study, “Defines an organization that recognizes the benefit of managing risk and implementing some form of risk governance but it lacks a formalized process to perform this task.

Level 3 – Normalized

According to the case study, “Means that the degree of maturity characterized by a formalized risk process included in routine business activities whose benefit, however, are not consistently achieved in every project.”

Level 4 – Natural

“This refers to an organization that is completely aware of risk and proactively manages opportunities and threats through consistent risk information.” according to the case

Product Life Cycle Stages

Product life cycle of Cellphone XYIS(NEW PRODUCT)

1.Introduction stage • This is a critical stage where a new cellphone XYIS is introduced into the market. The sales are very slow as the price of the cellphone is very high because it includes the production cost.

The anticipation is that the consumers responds in a positive way to this new product as there are other competitive brands.

2. Growth stage • At this stage the new product is doing very well, the sales are rising and the business is making profits out of the new product.

The feedback from the customer id very positive as a survey was conducted to get stats from the customers if they are happy and what can we improve to better our service.

3. Maturity stage • The maturity stage is where there is intense competition whereby other competitive company are producing similar products, which makes the sales of the business to decline and sell the cellphone at a lower price to retain our customers.

Enhancement has been made to the new cellphone XY1S to add new and improved features to attract more customers and to beat the