You are the project manager of GHT project.
Your project utilizes a machine for production of goods.
This machine has the specification that if its temperature would rise above 450 degree Fahrenheit then it may result in burning of windings.
So, there is an alarm which blows when machine's temperature reaches 430 degree Fahrenheit and the machine is shut off for 1 hour.
What role does alarm contribute here?
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A. B. C. D.A.
Here in this scenario alarm indicates the potential risk that the rising temperature of machine can cause, hence it is enacting as a risk indicator.
Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or unacceptable level of risk.
The main objective of a risk indicator is to ensure tracking and reporting mechanisms that alert staff about the potential risks.
Incorrect Answers: B: The first thing we must do in risk management is to identify the areas of the project where the risks can occur.
This is termed as risk identification.
Listing all the possible risks is proved to be very productive for the enterprise as we can cure them before it can occur.
In risk identification both threats and opportunities are considered, as both carry some level of risk with them.
C: The temperature 430 degrees in scenario is the risk trigger.
A risk trigger is a warning sign or condition that a risk event is about to happen.
As in this scenario the 430-degree temperature is the indication of upcoming risks, hence 430 degree temperature is a risk trigger.
D: Risk response is the action taken to reduce the risk event occurrence.
Hence here risk response is shutting off of machine.
The alarm that blows when the machine's temperature reaches 430 degrees Fahrenheit and shuts off the machine for one hour plays the role of a risk trigger. A risk trigger is an event or circumstance that indicates the presence of a risk or an impending risk.
In this case, the trigger is the machine's temperature reaching a certain level (430 degrees Fahrenheit) that signals the possibility of a risk occurring (burning of windings if the temperature rises above 450 degrees Fahrenheit). The alarm is designed to detect this trigger and respond by shutting off the machine, thereby mitigating the risk of the windings burning.
While the alarm can be seen as a risk indicator, it is not solely an indicator since it also initiates a response to the identified risk. Risk identification is the process of recognizing and describing risks that may affect a project, and risk response involves taking actions to mitigate or address the identified risks.
In summary, the alarm in the GHT project plays the role of a risk trigger by detecting an event that indicates the presence of a risk and initiating a response to mitigate that risk.