Chang/Shang-Jen/Oct 18 chapter 6/page 247/ 6, 12

6.

(1) technical scope is established (though perhaps not “cast in concrete”);

(2) basic areas of performance responsibility are accepted by the participants;

(3) any tentative delivery dates or budgets set by the parent organization are clearly

noted;

(4) a risk management group is created.

Work-Experience Application: When I was in a construction company in Taiwan, our

project team usually met many times in the beginning. Sometimes we would argue with

different departments because we thought some of the jobs did not belong to us. That's

why those meetings were created. We had to figure out many things such as the owner's

technical scope, budgets or local law. Moreover, we had to know who should be

responsible for their jobs and what kind of evaluating tools we could measure the success

of the project.

Furthermore, we also had to know what type of source that our parent organization would

like to support us. Those things are significant for an initial project. Without discussing

those things, we could have a clear plan to process our project.

12. It is a cart showing probability on one side and impact on the other where threats and

opportunities can be segmented into 'critical', 'monitor' and 'ignore' cells.

Work-Experience Application: In my experience, we usually made a risk matrix before

we tendered any bid. Due to past experiences, we didn’t consider very well and didn't

make any risk matrix before bidding. And then, we lost 20 million in a project that we

thought we could handle it. That project is about Nuclear Power Plant. We thought the

plant project was like the other general plant project, but we forgot to consider our ability

which couldn't do a Nuclear Power Plant. We didn't have any license about Nuclear

Power; we had to pay money to ask other foreign company help us to do some part of the

project. This let us lost a lot of money. After this, our CEO asked us to make a risk matrix

before any bidding.