Risk Management in Resource Management

Correct Answer: Implement a change control process

The best way to handle the risk of constant changes in client requirements is to 'Implement a change control process'. Change control process refers to a systematic approach to managing all changes made to a product or system. It ensures that no unnecessary changes are made, that all changes are documented, that services are not unnecessarily disrupted and that resources are used efficiently. This process will effectively manage and control the risk involved in frequent requirement changes. Other options such as 'Stop accepting any new changes' is not a proactive solution and can lead to client dissatisfaction. 'Escalate the issue to higher management' is not always the best initial step as the project manager should be able to handle such risks. 'Allocate additional budget to accommodate constant changes' is not necessarily an effective solution as budgeting extra funds won't necessarily alleviate the risk related to constant change.

Correct Answer: Address the issue with the provider and prepare a contingency plan

The best solution in a situation where there's a risk of project delay due to a third-party service provider is to 'Address the issue with the provider and prepare a contingency plan'. This approach involves proactive problem-solving and ensures that there is a back-up strategy in place, thereby allowing dependent tasks to proceed with minimal disruption, even if the third-party doesn't meet its obligations As for the other options: - 'Waiting until the provider makes a mistake' isn't advisable because it's passive and reactive. A better approach is to anticipate and actively manage potential issues - 'Switching to another provider abruptly' could cause additional issues. It could be costly, time-consuming, and there's no guarantee that the new provider would be any more reliable than the current one - 'Taking over the provider's tasks' is typically unfeasible because the tasks would require resources, knowledge, and capacities that the project team may not have. It's better to involve experts within their areas of expertise.

Correct Answer: Accept

In risk management, various strategies can be employed to manage identified risks. These include risk acceptance, transfer, mitigation, or avoidance. The 'Accept' strategy is the correct answer to this question. Acceptance is the appropriate strategy when a risk is deemed acceptable and will not significantly impact the project. This means that the project team is willing to deal with the risk if it occurs, since its impact on the project is not significant. On the other hand, 'Transfer' would involve shifting the risk or its impact to another party—this is not apt as the risk is determined to be acceptable, so there's no need to transfer it to someone else. 'Mitigate' would involve taking actions to reduce the impact or likelihood of the risk, which is not necessary if the risk is already acceptable. Lastly, 'Avoid' would require changing the project plan to eliminate the risk altogether, which is also not necessary if it is determined that the risk will not significantly impact the project thus it is acceptable