FORMATIVE ASSESSMENT 2 [100 MARKS] This project will require field research by the student. Transnet Freight Rail has been selected as an organization of your choice. You may need to engage the relevant stakeholders of the Transnet to discuss some of the business decisions that shaped the Transnet to date. Select ONE of the main business decisions taken and analyze it using the following questions as a guideline. Question 1(20 Marks) Describe the selected organization in terms of the following: 1.1. Summarize the nature of business (What do they do?) (5) 1.2. Summarize the business model? (How do they operate?) (5) 1.3. What are the key business drivers? (What the factors that influence the business?) (10) Responses must NOT more than 2 pages. Question 2 (20 Marks) 2.1. Nature of decision describing what decision needed to be made and why? (5) 2.2. Summarize how was the decision made? (5) 2.3. Analyze the decision made and describe if a qualitative or quantitative approach was used and justify your response? (5) 2.4. Confirm why was this approach taken by the business and appraise this approach from a Risk Modelling perspective? (5) Responses must NOT more than 2 pages. Question 3 (20 Marks) 3.1. Using the selected business decision from above, identify at least 5 risks that needed to be considered to make the same? Tabulate your response in a risk register shown below. Students need to delineate the required fields namely category, description, cause and effect. Students must explain the different categories of risks used. 1. Risk identifier 2. Category 3. Description 4. Cause 5. Effect 3.2. Using the risk register in the previous section, conduct a qualitative risk analysis for these 5 risks by proposing the probability of occurrence and impact for each risk? The risk matrix included in Appendix A must be used to rate the identified risks and students must explain the chosen probability and impact. The table below should be used to show your response. 1. Risk identifier 2. Category 3. Description 4. Cause 5. Effect 6. Probability 7. Impact 8. Rating 3.3. Using the risk matrix included in Appendix A, plot the risks on a heat map and explain what the map means? (5) Responses must NOT more than 2 pages. Question 4 (20 Marks) 4.1. The previous question provides an insight into the risk profile that the organization needs to consider during the decision-making process. Propose the reasons why the selected organization would sanction a quantitative risk analysis? (2) 4.2. There are two types of risk registers namely with and without aggregation. Differentiate between these two types of risk registers? (3) 4.3. Using the risk register derived in question 3.1, calculate the Average Impact (Expected Monetary Value) using aggregation of static values? (10) Students may use estimated values and state any assumptions during the estimation. 4.4. Summarize what does this average impact value means for the organization? (5) Responses must NOT more than 2 pages. Question 5 (20 Marks) 5.1. Using the risk register from question 3.1, calculate the 5 possible Expected Monetary Values using the aggregation of the risk driven occurrences methodology? Students may use estimated values and state any assumptions during the estimation. (10) 5.2. Describe the result of this methodology using an appropriate diagram? (5) 5.3. Summarize what does this average impact value means for the organization? (5) Responses must NOT more than 2 pages END OF PAPER Appendix A : Risk Matrix Appendix A : Risk Matrix END OF PAPER