QUESTION 1 (36 Marks) Table 1: Risk Impact Matrix for a Construction Firm HIGH R3 R9 MEDIUM R8 R5 PROBABILITY LOW R6 R2 LOW MEDIUM HIGH IMPACT Suppose that you are the Risk Manager for the above Construction Firm give an example of the risks in each of the rectangular box and briefly explain how you will respond to each of them (36 Marks: Note*: 1 Mark for each appropriate example and 3 marks for the appropriate response. Also note that the response should not merely state Treat/Tolerate/Transfer/Terminate but should include a brief statement of what to be done) Question 2 (34 Marks) i. Using a named PROJECT enterprise identify four (4) broad categories of risk (4 marks) ii. For each of the broad categories identified in (i) list two (2) potential risks that pose a threat to the objectives of the PROJECT. (8 marks) iii. Develop a Risk Register for the broad and sub-categories of risk. Prepare a Risk Impact Matrix from the information in (iii) above. (12 marks) (10 marks) iv. QUESTION 3 (30 Marks) Suppose you have P1000000.00 worth of equipment at the job site and wish to minimise your risk of direct property damage by taking out an insurance policy. The insurance company provides you with the following data Probability Amount of Damage (%) Type of Damage Total Damage 0.02 100 0.08 40 Medium Damage Low Damage No Damage 0.10 20 99.8 0 a. Prepare a decision tree to represent the above information. (10 Marks) b. If the insurance company uses expected value premium, how much would you expect the premium to be? (20 Marks) R1 R7 R4