Topic > Project Risk Management Essay - 1132

We have external suppliers who produce everything for the media player besides the motherboard, which can be done in-house. When you have outside contractors working on your media player it is crucial to have a contract with them in case one of their components goes wrong. One of the reasons why the last project team did not complete the project under the agreed circumstances was defective components. When transferring risk for components, suppliers guarantee that their equipment will function properly. Knowing that manufacturers have agreed to a component dispute allows the project team to transfer risk to the contractor. Risk prevention is about getting a reliable supplier to do the task for you so that the risk is minimal, or developing a manufacturing team that builds all the components to build the media player in-house. Building the player in-house will ensure that it will be made to specification as total control can be managed by you