Essay About High Risk Project And Risk Management

Infinite & Beyond, Inc. Case Study
3. linking problem with PM ConceptWe assume that the the Infinite & Beyond, Inc. is a high risk project, it is relate with the risk management or managing risk in a projectRisk identification  : Infinite & Beyond, Inc. has not capability in itself to develop and manufacture for new product concept. First, the new product concept is really new on this industry. Any company doesn’t has the new product concept like this. Second, but it’s still make they unsure about the product’s market potential, product goal unclear, and the technology to product it uncertain. Third, MSW the outsourced partner is not 100% also, with being able to develop and manufacture the product, since technology also new to them. Last, Infinite & Beyond, Inc. never work with MSW before.Internal Risks. The new product of high risk must be studied and well understood before the project can be approved and funds committed to it. Internal risks originate inside the project. Project managers and stakeholders usually have some measure of control over these. Three main categories of internal risks are market risk, assumptions risk, and technical riskExternal Risks. External risks originate from sources outside the project. Project managers and stakeholders usually have little or no control over these. External risk hazards include: Market conditions Customer needs, material and labor resources availability (strikes and walkouts) exchange rates Material or labor resources (shortages) decisions by senior external control by customers or management or the customer subcontractors over new product project and regarding project priorities, resources staffing, or budgets.Transfer the Risk can be transferred partly between Lisa set a fixed price contract with MSW. Since the product is new, fixed price contract may also represent good strategy, since in fixed price contract, the contractor assume most of the risk. Such as cost and time overrun.