The FTA concluded that assessment of frame jeopardy, based primarily on discreet risk events did not satisfactorily forecast unquestionable cost results; the focus on individual risk items and not on project risk as a self-colored may be masking risks that are unconsidered or individually small, but collectively have a significant effect on the final project cost (Sillars & OConnor, 2009, p. 3).
The FTA began making improvements by issuing a Risk opinion and Mitigation Procedures. Decision makers benefited from this initiative but the FTA needed more(prenominal) improvements. The organization procured the services of Project Management Oversight Contractors or PMOCs. The PMOCs reviewed and approved a project attention plan (PMP) adding a layer of independent review to the process.
The FTA expanded their risk compendium to include a bottom-up and a top-down approach. The mental representation met with the stakeholders at risk workshops. The group would identify individual risks associated with the project to be added to the risk register.
The PMOC would run the sum of the individual risks by means of a Monte Carlo simulation to formula the bottom-up risk assessment. The agencys top-down risk assessment is a holistic approach that includes all elements of the project.
RPD must consider incorporating the top-down and bottom-up approaches. RPD exposure to risk is beyond the individual separate points of risk. RPD has the potential of synergistic exposure to risk if the business experiences the add up effects of several risk factors simultaneously. RPD stands to gain from adopting the FTAs philosophy of integrating traditional project management reviews with risk management processes.If you want to get a full essay, order it on our website: Orderessay
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