Pepsi’s Board of Directors is considering halting the extension of the Pepsi Refresh Program because the program has not shown a direct link to increased revenue. While the company benefitted from the original program’s social media campaign, the goal of the extension—to establish a link between the program and revenue increases—has not materialized. The continuation of the Pepsi Refresh Program will be conditional on the program’s ability to drive revenue to products in each of the Pepsi product portfolios. This is seen as a significant risk for moving the program forward. Mary Dial, a project manager at Pepsi, and Frank Galdi, a risk management consultant, have been given responsibility for ensuring that the program’s risks are identified and managed effectively. They have determined that a formal process for monitoring and controlling program risks is needed.
Explain the value of a formal risk monitoring and controlling strategy in the context of the Pepsi Refresh Program extension.
(2–3 paragraphs)
Describe the process you feel that Mary and Frank should use to monitor and control the risks associated with the “HUGE” campaign to ensure the Pepsi website drives increased revenue.
(3–4 paragraphs)
Short Answer 2
Monitoring and controlling project risk is a critical component of the overall process for project risk management. Monitoring and controlling project risk is not a one-time activity but must be performed continuously throughout the project life cycle. One of the primary goals of monitoring and controlling project risk is to optimize risk responses. It also includes tracking any resulting secondary or residual risks. In addition, it is through this process that previously identified risks may be retired as no longer relevant and entirely new risks may be identified. One of the responsibilities Mary and Frank have been given is to report to stakeholders exactly how project risks will be monitored and controlled.
Evaluate and recommend three tools that Mary and Frank can use to monitor and control risk. Provide a rationale for the tools you chose.
(3–4 paragraphs)
Explain how secondary and residual risks are derived from the risk monitoring and controlling process. (2–3 paragraphs)
