While preparing the Risk Management Strategy, the Project Manager considered the commercial customer/supplier environment and how this may affect the management of risk.
Which approach should the Outsourcing project adopt?
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A. B. C.C.
When preparing the risk management strategy for an outsourcing project, the project manager must consider the commercial customer/supplier environment and how it may affect risk management. In other words, the project manager should assess the potential risks that may arise due to the relationship between the customer and the supplier.
Option A suggests planning to use the selected service provider's risk management procedures. This approach may be suitable if the service provider has a robust and reliable risk management system in place, and the project manager has confidence in the provider's ability to manage risks effectively. However, it is important to note that the ultimate responsibility for risk management lies with the project manager, not the service provider.
Option B states that all project risks associated with the specialist deliverables should be owned by the selected service provider. This approach is not appropriate because it places all the responsibility for risk management on the service provider, which may not have the necessary expertise or resources to manage all the risks effectively. Furthermore, the project manager is ultimately responsible for the project's success or failure, and therefore must have visibility and control over all the project's risks.
Option C proposes creating a separate Risk Register to be held by the customer and the selected supplier due to the sensitive nature of the project. This approach may be appropriate if the project involves highly sensitive information that requires additional security measures. However, it is important to ensure that the Risk Register is comprehensive and covers all the project's risks, and that both parties have access to it and work together to manage the risks effectively.
In summary, option A is a valid approach if the service provider has a robust risk management system in place, but the project manager must retain ultimate responsibility for risk management. Option B places too much responsibility on the service provider and may not be appropriate. Option C may be suitable for highly sensitive projects, but careful planning and coordination are required to ensure effective risk management.