Case Study: Risk Management and Evaluation Solar energy is one of the possible alternative energy to meet the increasing energy demand in the world. Unlike coal and gas, Solar produced power can be considered as clean from pollution. In this context, the UAE has increased its focus on this energy source in order to comply with its vision of being a clean industrial country that sustain environment and people. As the risk manager of a project sponsored by the company Sun Clean, you are assigned the role of managing and evaluating risks that might affect the project during the execution phase. The project is scheduled to start from August 2021, and it consists of building a new type of Photovoltaic Power Station (called also Solar Park or Solar Farm). During a brain storming session, you discovered that the current pandemic, due the COVID-19, could be a triggering event that might lead to the occurrence of several risky events. The following represents data about the project prior to the risk study: Case Study: Risk Management and Evaluation Solar energy is one of the possible alternative energy to meet the increasing energy demand in the world. Unlike coal and gas, Solar produced power can be considered as clean from pollution. In this context, the UAE has increased its focus on this energy source in order to comply with its vision of being a clean industrial country that sustain environment and people. As the risk manager of a project sponsored by the company Sun Clean, you are assigned the role of managing and evaluating risks that might affect the project during the execution phase. The project is scheduled to start from August 2021, and it consists of building a new type of Photovoltaic Power Station (called also Solar Park or Solar Farm). During a brain storming session, you discovered that the current pandemic, due the COVID-19, could be a triggering event that might lead to the occurrence of several risky events. The following represents data about the project prior to the risk study:

Part I:Risk Management

As the head of the project risk management team, you will perform some of the risk management steps by replying to the following questions:

Questions: 1. Propose four possible risk events that could be triggered by the COVID-19 pandemic and explain how they might affect the project.

2. For each proposed risk event, propose a risk response plan to face or overcome the risk (Note that risk response plans should be different for each risk event).

Part II:Risk Assessment

In order to evaluate the possible risk impact on the project completion, you have conducted a research (using the four risk eventsyou already listed in part I) that have led to the following results: If one risk event occurs during any activity then it will delay the activity buy 2 days. Hence, and in order to apply the PERT technique, you will define three time estimates as following: To: The activity time: T (from the table:Solar Park Project Data) Tm: T + Delay from the occurrence of two risk events Tp: T + Delay from the occurrence of four risk events

Questions:

1. Draw the project AON diagram and compute the three time estimates for each activity.

2. What is the expected time of each activity?

3. What are the activities on the critical path?

4. What is the variance of the time for each activity?

5. What is the probability that the project will finish at or before a period equal to 90% of the project expected duration?

6. What is the probability that the project will finish at or before a period equal to 95% of the project expected duration?