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Most Expensive Computer Bug Essay

720 words - 3 pages

introductionEvents outside the control of the project management - and the team as a whole - can occur that jeopardizes the success of the project. Every project is exposed to some level of risk. The ability of the project manager to identify risk and develop plans to mitigate those risks will determine the severity of the impact risk will cause. Projects that fail do so because a risk was not identified or adequately mitigated. The Ariane 5 launcher project encountered a severe setback when the launcher exploded shortly after takeoff on its maiden flight. The cause of the failure was a problem that, if identified and mitigated, could have been negated. This paper will briefly discuss the Ariane 5 project failure and how risk management could help in preventing the failure from occurring.Risk identificationRisk management is simply that - the management of risk through identification and mitigation. Every project plan should incorporate some form of a risk management plan. A risk management plan details the steps to identify risk, the severity the risk poses to the project if it were to occur, and the steps to be taken to mitigate the risk.Identifying risk is critical in the risk management process. Risks can be determined by several methods: analysis of the project plan for failure, analysis of similar projects, review of historical data and the review of the lessons learned by previous project. Not all risks will be identified. Unknown risks lurk in every project. Project managers must learn to identify all risks, whether known or unknown, and the best way to mitigate those risks.Risk severity is categorized in two categories - probability the risk will occur if not mitigated and the level of impact to the project if it occurs. A risk that has a high probability of occurring but little impact may be allowed to happen if the problem is easily rectified after it occurs. However, risks that have likelihood of occurring and pose a significant threat to project outcome will require mitigation by project management. The project manager may take preventive steps to avoid the occurrence of the risk or install safeguards within the project to minimize the impact when it occurs.Ariane 5 failure descriptionAccording to the Inquiry Board Report, Ariane 5 Flight 501 experienced a catastrophic...

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