Page 210 - DCAP304_DCAP515_SOFTWARE_PROJECT_MANAGEMENT

Software Project Management

Notes PERT is a variation on Critical Path Analysis that takes a slightly more skeptical view of time
estimates made for each project stage. To use it, estimate the shortest possible time each activity
will take, the most likely length of time, and the longest time that might be taken if the activity
takes longer than expected.

Use the formula below to calculate the time to use for each project stage:
shortest time + 4 × likely time + longest time
6

Self Assessment Questions

Fill in the blanks

11. As testing is the last part of the project, it’s always under pressure and .....………………
constraint.
12. ………………….. risks generally lead to failure of functionality and performance.

13. A ………………… presents a graphic illustration of a project as a network diagram.
14. The …………………… was developed for project management in the private sector at
about the same time.

15. The Schedule Risk Assessment plan displays the ……………………….. for each team
member of a team area or project area.



Caselet Operational Risk Management — How Banks can
Manage the Unknown

HAT if suddenly ATMs stopped vending crisp notes, bank branches closed for
few days, the data centre of major banks shut down, busy operations in dealing
Wrooms of major banks come to a halt and banking personnel don’t reach their offices.
This is not a doomsday scenario but what actually happened during the Mumbai floods.
Uncertainty has crept into our lives. In technical parlance, we can call the risk involved in
running daily operations “operational risk”, or op-risk, for short.
In the banking industry, op-risk is as old as banking itself. The banking landscape has
undergone a sea change and is becoming more complex in terms of volume of business,
product innovation, financial engineering, new market practices, fast and rapid technology
innovation, deregulation, consolidation of banks and increasing competition among banks.
This has increased probability of failure or mistakes from the operations point of view; it
has increased the focus on managing op-risk.
The new BIS guidelines, generally known as “Basel II Accord”, recognises this and places
increased emphasis on op-risk management. The Basel committee defines op-risk as the
risk “of loss resulting from inadequate or failed internal processes, people and systems or
from external events”. This definition includes legal risk, but excludes strategic and
reputation risk. As banks move towards implementing Basel II norms, they need to evolve
an internal framework for effective management of op-risk.
Contd.....

204 LOVELY PROFESSIONAL UNIVERSITY