Terminology definitions. Define the following Risk Management terms with two paragraphs of explanation for each term, citing only our readings from Sessions 1-6, not your work or project experiences. (6 points: 2 points each)- YOU CAN USE RESEARCH SOURCES a) An iterative process b) Root cause analysis of risk c) Pareto diagramming of risk “frequency” Incorrect activity duration estimates may push personnel or resources into projects too early or too late. The RBS diagram with the 4 standard headings used worldwide is on p.253 of the Heldman text (2013, 7th edition). Review this now. Two estimating methods we have studied are parametric estimating and 3-point estimates. Explain how these could be used to mitigate risks intwo of the RBS heading areas : “project management” and “technical” risks. (4 points = 2 points per clear two paragraph description of an estimating method that can be used to mitigate risks) 3. Discuss why a key motive for any project manager is the identification of opportunities that can improve a project’s budget or resource cost plans. Cite two references from your assigned articles and/or textbook readings to support your discussion of how a Project Manager could utilize such an opportunity to limit ‘scope creep’. 1 page limit. (2 points) 4. Case Analysis (8 points) – Instructions at the end of the case Sam Martinez is seeking to invest a portion of his considerable assets in the “independent” electric power production industry in California, a sector projected to experience very rapid growth in the 21st century. He has set up a company “MexiEnergy Inc.” using his own funds and those of a number of family and colleagues. The intention is to use the company to build and operate an electric power plant, and then form a non-profit organization to “donate” some of the power to social service agencies serving immigrant families in L.A. However, the large public-sector California Energy Resources produces most of the power for California. The main exceptions are co-generation plants associated with food processing, timber and similar industries, some small hydro plants which generate electricity for northern California via water, and purchased power from other states. California Energy operates all long distance distribution, selling electricity to municipal utilities for local distribution; brokering power sales to large industrial customers, and providing electricity wholesale to small rural customers. California Energy will buy power from independent producers, but at rather low prices negotiated privately with each potential supplier, based on “avoided costs” which vary considerably from base to peak load usage patterns. California Energy wishes to increase its current significant dependence upon Navo Valley nuclear power reactor, which is projected to construct three more 880 megawatt units over the next twenty-five years. Should this happen, “avoided cost” for base load power could be very low. However, there is strong political pressure from a range of sources for publicly-declared prices well above current avoided costs to encourage private co-generation of electrical power.