Chapter7: Risk Management Learning Objectives Define project risk. Recognize four key stages in project risk management and the steps necessary to manage risk. Explain the Project Risk Analysis and Management (P R A M) process.Chapter 8: Cost Estimation and BudgetingLearning Objectives Understand the various types of common project costs and key differences between them. Apply common forms of cost estimation for project work, including ballpark estimates, definitive estimates, parametric estimates, and learning curve. Apply top-down, bottom-up, activity-based, and time-phased budgeting procedures for cost management. Recognize the appropriateness of applying contingency funds for cost estimation.Reflection and Discussion Forum Week 4Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding.Also, provide a graduate-level response to each of the following questions: Give some examples of projects using each of the risk mitigation strategies (accept, minimize, share, or transfer). How successful were these strategies? In hindsight, would another approach have been better? Consider the following observation: “The problem with risk analysis is that it is possible to imagine virtually anything going wrong on a project. Where do you draw the line? In other words, how far do you take risk analysis before it becomes overkill?” How would you respond? Imagine you are developing a software package for your company’s intranet. Give examples of the various types of costs (labor, materials, equipment and facilities, subcontractors, etc.) and how they would apply to your project. [Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion].[Your initial post should be at least450 wordsand in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]Activity 4Activity I – Qualitative Risk Assessment. Imagine that you are a member of a project team that has been charged with developing a new product for the residential building industry. Using a qualitative risk analysis matrix, develop a risk assessment for a project based on the following information: :Identified risk factors Likelihood 1. Key team members pulled off project 1. High 2. Chance of economic downturn 2. Low 3. Project funding cut 3. Medium 4. Project scope changes 4. High 5. Poor spec. performance 5. Low Based on this information, how would you rate the consequences of each of the identified risk factors? Why? Construct the risk matrix and classify each of the risk factors in the matrix.Activity II -Sochi Olympics—What’s the Cost of National Prestige?The Sochi Olympics was an example of project costs running out of control; so much so that the final price tag (estimated to be more than $50 billion), dwarfed the costs of every other Olympic Games to this point in time. In addition to picking a questionable, sub-tropical location for the Games, from the very beginning, the process of developing the site was subject to meddling from politicians, including President Vladimir Putin. Another major cost to the final price tag was related to charges of wide-spread corruption, as sub-projects for the Games (such as infrastructure, buildings, and roads) ended up with highly inflated price tags. This is a great case for general class discussion as we consider the purpose for Olympic Games, the challenges of cost control with critical deadlines that must be adhered to, and the fact that costs are rising for Games to the point where in 2017, Rome, Budapest, and several other cities withdrew their bids to host the 2024 Olympics because they could not trust the final costs and could not justify the value they would gain versus the costs of the project.Questions Consider the following statement: “Government-funded projects intended to serve as ‘prestige projects,’ such as the Sochi Olympics, should not be judged on the basis of cost.” Do you agree or disagree with this statement? Why? Project success is defined as adherence to budget, schedule, functionality (performance), and client satisfaction. Under these criteria, cite evidence that suggests the Sochi Olympics project was a success and/or failure. When a project has a “hard gate,” like being ready on time, how does that affect normal success criteria? Is it fair to judge a project with a critical completion date by normal project success standards? Why or why not? Consider the problems with the Rio Olympics sites that quickly occurred following completion of the 2016 Summer Games. Access the internet to find evidence of the current state of the Sochi Olympic site. How is it being used and what are the current problems and opportunities for Sochi?