MIT 704
IT Project Management & Governance
ISUFST School of Graduate Studies · Master in Information Technology
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Lecture 1 · Risk Governance & RA 9184 Procurement

Risk, Stakeholders, Procurement & RACI

BantayBaybay Puerto Alon Case Study

Core Executive Insight

🛡️ Decision Studio · Quantitative Risk Register & RA 9184 SLA Workbench

Day 3 Expected Monetary Value (EMV), Risk Reduction Leverage (RRL) & Public Procurement Penalties

Quantitative Risk & Legal Model
Net Risk Reduction ₱600,000 Gross Exposure - Residual
Risk Reduction Leverage (RRL) 6.67x Acceptance Benchmark: RRL > 1.0
RA 9184 Daily Liquidated Damage ₱1,100 / day Mandatory 1/10 of 1% (0.001) per day
Risk Governance Verdict
HIGHLY ECONOMICAL COUNTERMEASURES (RRL = 6.67 > 1.0 · Statutory SLA Enforced)
STEP-BY-STEP MATHEMATICAL CALCULATION BREAKDOWN Risk & Statutory SLA Equations
EMV = Probability × Impact  |  RRL = (Pre-Exposure - Post-Exposure) / Countermeasure Cost  |  RA 9184 LD = 0.001 × Unperformed Contract
1. Authoritative Lecture Benchmark
Pre-Exposure EMV:₱755,000 across 4 critical risks
Countermeasures:₱90,000 contingency reserve allocated
Post-Exposure EMV:₱155,000 residual exposure
Overall RRL:(₱755k - ₱155k) / ₱90k = 6.67x
RA 9184 Penalty:0.001 × ₱1,100,000 = ₱1,100 per day
2. Live Dynamic Equation
Risk Reduction:₱755,000 - ₱155,000 = ₱600,000
Leverage Ratio:₱600,000 / ₱90,000 = 6.67
Daily Penalty:0.001 × ₱1,100,000 = ₱1,100 / day
30-Day Delay Cost:30 × ₱1,100 = ₱33,000
Audit Status:Compliant with RA 9184
Hackathon Continuation Project Phase 3 · Risk Quantification & RACI Governance

Day 3 Executive Project Blueprint & Submission Guide

Direct Step-by-Step Continuation of Your Agri-Fisheries IT Hackathon Project

🌱 Connecting Your Hackathon Project to Day 3

CRITICAL INSTRUCTION: Do not invent a new, disconnected project topic. During the Agri-Fisheries IT Hackathon Workshop, your student team selected a real-world coastal or agricultural hazard and produced an initial Hackathon Project Charter (e.g., LandingWatch, BantayBaybay, PalayTrust, AgriTrack).

In Day 3: Risk Governance, Quantitative Pricing & RACI, your team takes that exact same project charter and advances it through today's graduate-level governance stage. Every day in this 5-day curriculum builds one unified, audit-ready master project dossier!

📋 Step-by-Step Instructions: What To Do Today
1
Retrieve Your Hackathon Project Charter

Open your team's Hackathon Charter from the Hackathon Panel above. Identify your selected Problem Statement, Target Beneficiary Group, and Core Technical Innovation.

2
Review the Required Day 3 Deliverables in Tab 2

Check the checklist in Tab 2 (Deliverables Checklist & Rubric). It provides clear instructions, formulas, and quality criteria for each section you must produce.

3
Examine the Worked Reference Exemplar in Tab 3

Review Tab 3 (Puerto Alon Exemplar). It demonstrates how a graduate team took the BantayBaybay Hackathon concept and produced full mathematical appraisals, matrices, and audit sign-offs.

4
Complete & Export the Submission Form in Tab 4

Switch to Tab 4 (Blank Submission Form). Fill in your team's project details using the turnkey Markdown template. Use the 1-Click Copy Markdown or Download .md File buttons to save your work.

🎯 Graduate Grading Rubric & Success Anchors
1. Strategic Traceability (25%)

Explicit benefit chain connecting technical outputs to measurable public/citizen outcomes without vague generalities.

2. Quantitative Rigor (25%)

Defensible calculations (PERT durations, Payback, NPV, EVM, EMV, or TCO) with honest operational buffers.

3. Regulatory Compliance (25%)

Strict adherence to Philippine RA 9184 public procurement rules and COA asset capitalization guidelines.

4. Human-Centered Design (25%)

Clear consideration of grassroots realities: device constraints (2G phones), local dialects, and operational stress.

📝 Day 3 Required Project Submissions

Complete each deliverable for your team's Hackathon initiative. Check each item off as you complete your dossier.

Deliverable 3.1 · Quantitative Risk Register (EMV Catalog) Required

Identify 4 critical hazards (theft, connectivity outages, sensor corrosion, user non-compliance). Calculate Expected Monetary Value: $ ext{EMV} = ext{Probability} imes ext{Impact in } ₱$.

Deliverable 3.2 · Risk Reduction Leverage (RRL) Appraisal Required

Evaluate each countermeasure using $RRL = ( ext{Pre-EMV} - ext{Post-EMV}) / ext{Cost}$. Prove that each countermeasure yields $RRL > 1.0$ and justify funding via Contingency Reserves.

Deliverable 3.3 · Stakeholder Power-Interest Matrix Required

Plot municipal stakeholders across 4 quadrants: Mayor & Council (Manage Closely), Provincial Officers (Keep Satisfied), Fisherfolk/Farmers (Keep Informed), Public (Monitor).

Deliverable 3.4 · Master RACI Governance Matrix Required

Map 6 key deliverables to stakeholders enforcing the Golden Rule: exactly ONE person is Accountable (A) per deliverable, preventing finger-pointing.

Deliverable 3.5 · RA 9184 Public Procurement & SLA Terms Required

Specify competitive bidding mode, liquidated damages clauses (1/10th of 1% per day of delay), 99.5% uptime SLA, and 10% warranty retention under Philippine procurement law.

🏆 Gold-Standard Worked Reference Exemplar: BantayBaybay Puerto Alon

This is an authentic, graduate-level reference dossier illustrating how the BantayBaybay team executed Day 3. Use this as your benchmark for rigor, formatting, and depth.

1. BantayBaybay Quantitative Risk Register & RRL Analysis

The BantayBaybay team analyzed 4 core risks totaling ₱755,000 in pre-exposure cash vulnerability. By deploying countermeasures funded via the ₱90k Contingency Reserve, expected exposure was reduced to ₱155,000. All 4 countermeasures achieved RRL > 1.0, with Alert Fatigue Countermeasures achieving an exceptional RRL = 5.00 (₱150k risk reduction for ₱30k training cost).

2. Single-A RACI Accountability Allocation

In statutory governance, the Municipal Mayor was designated as the sole Accountable (A) owner for the overarching Project Charter and Typhoon Evacuation Declarations, while the Technical ICT Officer held sole accountability for the SMS Broadcast Gateway, eliminating multi-owner finger-pointing during life-critical emergencies.

📄 Turnkey Project Submission Template

Copy or download this pre-formatted Markdown template, fill in your team's Hackathon data, and submit for evaluation.

# [PROJECT NAME] — Risk Governance, Stakeholder Engagement & RACI Dossier
*(Continuation of Hackathon Project Charter · Round 1–4)*
**Team Name:** [Enter Hackathon Team Name]
**Academic Program:** MIT 704 · IT Project Management & Governance
**Sponsoring Entity:** [e.g., Municipal Agriculture Office / MDRRMO / Coastal Fisherfolk Federation]
**Primary Authors:** [Student Team Members & Designated Roles]

---

## 🧭 HACKATHON CONTINUITY BRIEF
*In Day 3, your team hardens your Hackathon initiative against catastrophic real-world failure by quantifying operational risks in cash exposure, mapping political stakeholders, and embedding enforceable RA 9184 contract terms.*

---

## 1. Quantitative Risk Register & Expected Monetary Value (EMV)
\$\$\text{Pre-Exposure EMV} = \text{Probability} \times \text{Financial Impact in } ₱\$\$

| Risk ID | Hazard / Vulnerability Description | Prob (P) | Impact (I) in ₱ | Pre-Exposure EMV | Proposed Countermeasure | Countermeasure Cost (C) | Post-Exposure EMV | Risk Reduction Leverage (RRL) | Strategy |
| :--- | :--- | :---: | :---: | :---: | :--- | :---: | :---: | :---: | :---: |
| **RSK-01** | Deep-Cycle Solar Battery Theft at Remote Stations | 60% | ₱300,000 | ₱180,000 | Tamper-proof steel lockboxes + Barangay Tanod surveillance MOA | ₱45,000 | ₱30,000 | **3.33** | Mitigate |
| **RSK-02** | Cellular Base Tower Outage during Super Typhoon | 75% | ₱400,000 | ₱300,000 | Solar VHF radio fallback relay + LoRa long-range mesh backup | ₱85,000 | ₱60,000 | **2.82** | Mitigate |
| **RSK-03** | Salt Spray Sensor Corrosion & False Storm Triggers | 50% | ₱150,000 | ₱75,000 | Marine-grade IP68 conformal coating & quarterly calibration | ₱25,000 | ₱15,000 | **2.40** | Mitigate |
| **RSK-04** | Fisherfolk Alert Fatigue & Ignoring Warnings | 40% | ₱500,000 | ₱200,000 | Barangay drills + Hiligaynon plain-language messaging protocol | ₱30,000 | ₱50,000 | **5.00** | Mitigate |

---

## 2. Risk Reduction Leverage (RRL) Decision Framework
\$\$\text{RRL} = \frac{\text{Pre-Exposure EMV} - \text{Post-Exposure EMV}}{\text{Countermeasure Implementation Cost}}\$\$
* **Decision Rule:** Any countermeasure with \$\text{RRL} > 1.0\$ yields a net positive financial and social return on public investment.
* **Prioritization:** RSK-04 (RRL = 5.00) \$\rightarrow\$ RSK-01 (RRL = 3.33) \$\rightarrow\$ RSK-02 (RRL = 2.82) \$\rightarrow\$ RSK-03 (RRL = 2.40). All 4 countermeasures are economically justified and funded via the ₱90,000 Contingency Reserve.

---

## 3. Stakeholder Power-Interest Matrix & Engagement Strategy
| Stakeholder Group | Power | Interest | Grid Quadrant | Primary Engagement Protocol | Channel & Frequency |
| :--- | :---: | :---: | :--- | :--- | :--- |
| **Municipal Mayor & Sangguniang Bayan** | High | High | **Manage Closely** | Executive milestone briefings, budget defense, formal COA updates | Bi-weekly Steering Committee |
| **Provincial DRRM Office (PDRRMO)** | High | Low | **Keep Satisfied** | Statutory compliance reports, disaster interoperability protocols | Monthly formal memorandum |
| **Coastal Fisherfolk Cooperatives** | Low | High | **Keep Informed** | Grassroots participatory testing, plain-language SMS validation | Weekly barangay assemblies |
| **Hardware & Telco Vendors** | Medium | Medium | **Contractual Alignment** | Strict RA 9184 contract terms, SLA monitoring, milestone sign-offs | Weekly vendor sprint sync |

---

## 4. Master RACI Governance Matrix
*Legend: R = Responsible (executes work), A = Accountable (approves, exactly one owner), C = Consulted (two-way input), I = Informed (one-way update)*

| Core Project Deliverable | Municipal Mayor | MDRRMO Officer | Municipal ICT Officer | Barangay Captains | Lead Tech Vendor | Fisherfolk Rep |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| **Project Charter & Budget Approval** | **A** | C | C | I | I | I |
| **RA 9184 RFP & Vendor Selection** | A | C | **R** | I | I | I |
| **Sensor Mast Civil Works & Curing** | I | A | C | C | **R** | I |
| **SMS Gateway Software Deployment** | I | C | **A** | C | **R** | I |
| **Typhoon Evacuation Declaration** | **A** | **R** | I | C | I | I |
| **COA Final Handover Acceptance** | **A** | C | **R** | I | C | I |

---

## 5. RA 9184 Public Procurement Specification & SLA Clauses
* **Procurement Mode:** Competitive Public Bidding under Philippine RA 9184 (Government Procurement Reform Act).
* **Liquidated Damages:** \$1/10\text{th of } 1\% \text{ (0.001)}\$ of the total unperformed contract price for every calendar day of delay.
* **Service Level Agreement (SLA):** 99.5% operational uptime for ocean sensor transmission during typhoon season; maximum 4-hour mean-time-to-repair (MTTR) for critical gateway outages.
* **Warranty Retention:** 10% retention money withheld from progress billings for 12 months following Certificate of Final Acceptance.

🗺️ The Continuous 5-Day Project Lifecycle

See how your Hackathon concept advances across all 5 days of the ISUFST MIT 704 curriculum.

Day 1 Initiation
Projects, Business Case & WBS

Establish statutory justification, 3-way options appraisal, 5-year NPV (+₱207k), and 26-week CPM baseline.

Day 2 Agile
Scrum, Backlog & Sprints

Form Scrum team, craft BDD acceptance criteria, define DoD quality contract, and size Sprint 1 (78 task hrs).

Day 3 Governance
Risk, RACI & Procurement

Price risk exposure with EMV, prioritize via RRL (>1.0), assign single-A RACI accountability, and enforce RA 9184 SLAs.

Day 4 Enterprise
COBIT 2019 & 5-Year TCO

Separate governance (EDM) from management (PBR), trace COBIT Goals Cascade, and budget full ₱2.41M 5-year TCO.

Day 5 Closure
EVM Control, Stress-Test & COA

Diagnose midterm EVM variance (CPI 0.92, SPI 0.80), execute live monsoon storm test, and capitalize fixed assets under COA rules.

Day 1 Activity · 5-Day Capstone
Agri-Fisheries & Blue Economy IT Hackathon
Hackathon Slide Preview
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Slide 1 of 36 Agri-Fisheries & Blue Economy IT Hackathon

⚡ Workshop Structure: 2-Hour Action Sprint

Teams of 3 to 5 graduate students working simultaneously across 3 workstreams. Every team develops and pitches one fundable, field-tested IT solution for Philippine artisanal agriculture or fisheries.

Round 1 Problem Storm (15m)

Open the class scoring spreadsheet and write five grassroots problems in your community. Every problem must be framed from the fisher's or farmer's point of view, backed with empirical field evidence (no jumping to solutions).

Round 2 Score & Select (15m)

Score each problem 1 to 5 on the 6 weighted criteria. Before locking in the #1 winner, the team's designated Devil's Advocate delivers the strongest objection, and the team must defend it in one sentence.

Round 3 Charter Sprint (35m)

Split into 3 workstreams to fill the 11-section Project Charter: SMART criteria, Level-2 WBS, System Context Diagram, Milestones, and a preliminary budget with a mandatory 10% contingency reserve.

Round 4 Panel Pitch (5m)

3-minute 1-slide pitch to municipal stakeholder roles (Mayor, MAO, BFAR, Fisherfolk Co-op, ICT/DPO) followed by a 2-minute defense defending operational and financial feasibility.

If your team needs empirical inspiration, draw from these real-world coastal and rural municipal challenges:

🐟 Municipal Fisheries

• FishR and BoatR municipal registries severely out of date.
• Zero recorded catch logs for municipal waters under 15km.
• Late gale warnings fail to reach fishers without smartphone 4G.
• Red tide shellfish harvesting bans arrive after market dispatch.

🌾 Agriculture & Smallholders

• Farmers missing from RSBSA registry, blocking DA fuel subsidies.
• PCIC crop insurance claim verification stuck on physical paper.
• Armyworm and blast pest outbreaks reported days too late.

🌊 Aquaculture & Seaweed

• Estuary water salinity and pH tested manually once a week.
• Ice-ice seaweed blight spreads without predictive environmental warning.

⚖️ Landing Sites & Cold Chain

• Severe price asymmetry: fishers sell at buyer price without market feeds.
• 30% post-harvest loss from inadequate ice logistics at municipal piers.

🌿 Mangroves & MPA Ecology

• Thousands of mangrove saplings planted with zero survival monitoring.
• Marine Protected Area (MPA) patrol logs kept on paper notebooks.

Criterion Weight Anchor: Score 1 (Weak) Anchor: Score 5 (Exemplary)
Livelihood Impact 25% Touches <20 households; minor economic inconvenience Directly protects hundreds of livelihoods, food security, or life safety
Feasibility 20% Requires unavailable satellite arrays or 4G LTE at sea Feasible in 12 months using 2G SMS, solar batteries, and local LGU staff
Urgency & Vulnerability 15% Can wait 3 years with negligible public impact Critical immediate hazard: loss of life, harvest failure, or stock collapse
Sustainability & Climate 15% Zero ecological or climate resilience benefit Directly reduces disaster risk, preserves fish stocks, or restores mangroves
Data Readiness 15% No registries exist; Data Privacy Act compliance impossible Empirical registries exist (FishR, RSBSA) and are legally accessible
Policy Alignment 10% Not mentioned in any municipal or national plans Explicitly prioritized in LGU AIP, Coastal Resource Plan, or BFAR mandate
LandingWatch Exemplar · 11-Section Turnkey Markdown Template
# PROJECT CHARTER: LandingWatch (BantayBaybay) ## Same-Day Fish Prices & Catch Records for Municipal Landing Sites ### 1. Project Identity - **Project Code:** MIT704-HACK-G01 - **Project Title:** LandingWatch Municipal Telemetry & SMS Dispatch - **Target Location:** Barangay Puerto Alon & Barangay San Pedro Landing Piers - **Sponsoring Agency:** Municipal Agriculture Office (MAO) & MFARMC ### 2. Problem Statement & Evidence - **Grassroots Problem:** Small-scale fishers sell their catch at whatever price the local middleman dictates because market prices are posted on paper 24 hours too late. - **Field Evidence:** 620 registered fishers; 0 digital catch logs; 18% estimated loss in gross fisher income due to pricing opacity; 84% of fishers own basic 2G feature phones. ### 3. SMART Success Criteria - **S1:** At least 70% of registered municipal fishers receive daily 5:00 AM SMS market prices by Month 4. - **S2:** At least 90% of boat catch landings logged digitally within 2 hours of arrival by Month 6. - **S3:** Average net income realized by participating fishers increases by 10% within 12 months. ### 4. Scope Envelope - **IN SCOPE:** • Dual-channel SMS gateway (2G basic phones + Android PWA for landing marshals) • Solar-powered digital scale integration at 2 pilot landing sites • Daily market price broadcast engine connecting to municipal agriculture board - **OUT OF SCOPE:** • Satellite broadband on bangkas at sea • Mobile e-wallet payment processing (deferred to Phase 2) • Cold storage refrigeration physical construction ### 5. System Context Boundary Diagram ```mermaid graph TD Fishers["Municipal Fishers (2G SMS)"] -- Catch Query & Daily Price --> Sys["LandingWatch System"] Marshals["Pier Landing Marshals"] -- Weight & Species Entry --> Sys MAO["Municipal Agriculture Officer"] -- Price Board Configuration --> Sys BFAR["BFAR Region VI"] <-- Aggregated Monthly Catch Telemetry -- Sys ``` ### 6. Work Breakdown Structure (Level 2) - **1.0 Project Management:** Charter, Stakeholder Alignment, RA 9184 SLA Procurement - **2.0 Hardware & Pier Setup:** Solar Digital Scales, Ruggedized Tablet Enclosures, Surge Protection - **3.0 Software & Telco Gateway:** SMS Broadcast Engine, Landing Marshal Web App, Offline Sync - **4.0 User Training & Rollout:** Marshal Field Drills, Fisher SMS Awareness Campaign, Go-Live - **5.0 Governance & Post-Handover:** COA Property Capitalization, Post-Implementation Review ### 7. Milestones & Schedule - **M1:** Charter Signed & Council Resolution: Month 1 - **M2:** Hardware Procured & Pier Scales Installed: Month 3 - **M3:** SMS Gateway Live Field Pilot: Month 4 - **M4:** 100% Landing Catch Data Recorded: Month 6 - **M5:** COA Property Transfer & Operations Handover: Month 7 ### 8. Preliminary Budget & Reserves - **Hardware & Scales:** ₱145,000 - **Software Development & SMS Bundles:** ₱120,000 - **Marshal Training & Field Drills:** ₱26,000 - **Subtotal (Base Cost):** ₱291,000 - **Contingency Reserve (10% Known Unknowns):** ₱29,100 - **TOTAL APPROVED BUDGET:** ₱320,100 - **Annual Recurring OpEx:** ₱72,000 / year (funded via LGU AIP) ### 9. Key Risks & Approvals - **Risk 1:** Cellular tower power loss during severe monsoon storms. (Mitigation: Offline store-and-forward SQLite database). - **Risk 2:** Fisher distrust of digital scales. (Mitigation: MFARMC joint calibration verification seal). - **Executive Sign-off:** Municipal Mayor, Municipal Agriculturist, MFARMC Chairman.

🔄 Slide 34 Rule: Course-Long Continuous Spine

The project chosen today does not end today. Here is exactly how your team will advance this exact project across Days 2 to 5:

Day 1: Project Alignment & WBS

Problem discovery, SMART success criteria, 1-box Context Boundary, 3-level WBS, Three-Point PERT, 26-week Critical Path & 10% Reserves.

Day 2: Agile Sprints & Backlog

Decompose the Charter into Scrum Epics, write BDD User Stories for Mang Ramon & Ate Liza, and calculate 78 focus hours for Sprint 1.

Day 3: Quantitative Risk & RACI

Score typhoon and political risks with EMV ($P imes I$), prove Risk Reduction Leverage (RRL > 1.0), and establish RA 9184 SLA penalty clauses.

Day 4: COBIT 2019 & 5-Year TCO

Align project with municipal objectives using COBIT Goals Cascade, calculate the 5-Year TCO Iceberg (CapEx vs OpEx), and score against portfolio competitors.

Day 5: EVM Analytics & Handover

Conduct Month 3 EVM audit ($PV, EV, AC, CPI, SPI, EAC$), execute crisis schedule crashing during typhoons, and execute COA asset capitalization handover.

Curriculum Slide Index
32 Slides · 50m 52s Total Runtime