Project Management Case Studies, 7th Edition

Part 11PROJECT RISK MANAGEMENT

In today's world of project management, perhaps the single most important skill that a project manager can possess is risk management. Risk management includes identifying the risks, assessing the risks either quantitatively or qualitatively, choosing the appropriate method for handling the risks, and then monitoring and documenting the risks.

Effective risk management requires that the project manager be proactive and demonstrate a willingness to develop contingency plans, actively monitor the project, and be willing to respond quickly when a serious risk event occurs. Time and money are required for effective risk management to take place.

The Space Shuttle Challenger Disaster

On January 28, 1986, the space shuttle Challenger lifted off the launch pad at 11:38 a.m., beginning the flight of Mission 51‐L. Approximately 75 seconds into the flight, the Challenger was engulfed in an explosive burn, and all communication and telemetry ceased. Seven brave crewmembers lost their lives. On board the Challenger were Francis R. (Dick) Scobee (commander), Michael John Smith (pilot), Ellison S. Onizuka (mission specialist 1), Judith Arlene Resnik (mission specialist 2), Ronald Erwin McNair (mission specialist 3), S. Christa McAuliffe (payload specialist 1), and Gregory Bruce Jarvis (payload specialist 2). A faulty seal, or O‐ring, on one of the two solid rocket boosters (SRBs) caused the accident.

Following the accident, significant energy was expended ...