Question 2 (Marks: 30)
Read the scenario below and answer the questions that follow:
You have been contracted to plan a music festival in the spring. This event will require
promotions, volunteers, an artist line‐up, food, and cleaning services.
Q.2.1 With regards to managing risk answer the following questions.
Q.2.1.1 Discuss what a risk is, and what the process of risk identification
entails.
(5)
Q.2.1.2 Identify the main risk examples in the project scenario under the
following categories:
Technical ( 3 Risks)
Sponsor/Customer (2 Risks)
(5)
Q.2.1.1 A risk refers to any uncertain event or condition that, if it occurs, could have a positive or negative impact on a project's objectives. The process of risk identification involves systematically identifying and documenting potential risks that could occur during the project.
The process of risk identification includes the following steps:
1. Brainstorming: Gather a group of stakeholders to identify potential risks. Encourage open discussion and generate a list of possible risks.
2. Documentation: Document each identified risk, including its description, potential impact, and potential causes.
3. Review: Review the documented risks with the project team to ensure that all potential risks have been identified.
Q.2.1.2 Technical risks in the project scenario:
1. Technical equipment failure: There is a risk that the sound and lighting equipment used during the festival may malfunction or break down, causing disruption to performances.
2. Power outage: There is a risk of a power outage during the festival, which could lead to disruptions in performances and affect the overall experience for attendees.
3. Technology issues: There is a risk of technical issues with online ticketing systems or the festival website, which could lead to difficulties for attendees in purchasing tickets or obtaining information.
Sponsor/Customer risks in the project scenario:
1. Financial withdrawal: There is a risk that one or more sponsors may withdraw their financial support, causing a shortfall in funding for the festival.
2. Dissatisfaction with the artist line-up: There is a risk that the sponsor or customer may not be satisfied with the chosen artist line-up, which could affect their willingness to support the event financially.