According to the Project Management Institute’s Guide to the Project Management Body of Knowledge there are four steps for managing risks. In this paper there will be a look at two of the steps. In the text Project Management Risk Guidelines: Managing Risk in Large Projects and Complex Procurements, there is a chapter dedicated to Phase I and Phase II of the tender evaluation process. Essentially in each phase you are doing risk identification and risk quantification. The assignment is to compare the two phases discussed and then answer questions that compare the two phases. Since each phase is designed to serve a different purpose, you can’t really say one phase is better than another. Both phases are important in order to understand the risks during the tender evaluation process.
Phase I that is described in the textbook is a detailed process that is used to baseline the risks of a project at the WBS level. According to the text, phase I is done before receiving any responses to the tender request. This is important because knowing the risks for each WBS item in the tender will allow people to understand the risks involved and then allow an understanding of how to evaluate the responses that are received in phase II. So, phase I allows the group that prepares the tender to baseline the risks that are understood at the time the tender is prepared so the people who have to evaluate responses have something which to compare. Both phase I and phase II involve risk identification. Since both phases serve different purposes, you can’t really compare the two and say one phase does a better job at identifying risk over the other. Phase I’s purpose is to create the baseline and identify all the risks for each of the WBS elements. Therefore, in phase I risk identification is critical to the successful creation of the baseline risk evaluation. In phase II, you are comparing the tender responses to each WBS item and comparing the responses...
Cited: Cooper, Dale & Grey, Stephen. (2005). Project Management Guidelines: Managing Risk in Large Projects and Complex Procurements. Wiley & Sons.
Egeland, Brad. (2009). Defining Risk Management – Part 4: Risk Quantification. http://pmtips.net/defining-risk-management-part-4-risk-quantification/ . Accessed February 20, 2011.
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