Question 2 (10 marks) Read the scenario below and answer the questions that follow. Risk management at Cool Beverages Cool Beverages blends and bottles a range of non-alcoholic beverages. Some production losses are part of normal operations, and Cool Beverages budgets for production losses of between R200 000 and R300 000 due to inefficiencies per month. The Financial Manager keeps a close eye on all costs and has noted that there was a marked increase in overall production costs between August 2020 and December 2020, despite the cost of raw materials and output volumes remaining the same. Every Monday morning, all the managers meet to discuss the operational efficiency of the company. During one of these meetings in January 2021, the Finance Manager noted that, according to her estimates, production costs increased by an average of R3.5 million per month. The Quality Control Manager did further research, and, in March 2021, reported that they found that the accuracy of the filling machine was declining and it overfiled each bottle by between 14 and 20 millilitres. This inefficiency explained most of the increase in production cost. The management team did a cost-benefit analysis and determined that the losses attributable to inaccurate filling far outweighed the cost of replacing the filling machine. Cool beverages imported and installed a new computerised filling machine, which tracks the amount of syrup and bottles that it processes. Furthermore, an additional control step was introduced whereby five bottles would be sampled every ten minutes, and the filling level estimated using an infrared scanner. The filing machine is integrated with the company's centralised data warehouse and operational data is uploaded once a day, while the quality control team capture the results of the manual samples at the end of each day. At a meeting in February 2022, it was determined that the corrective measures that were introduced led to a significant decline in the number of bottles that were incorrectly filled. It is estimated that around 3% of bottles are incorrectly filled now, with production losses averaging R220 000 per month. Use information from the scenario to explain how the beverage company applied the following five major steps of the risk management process: 2.1 Risk identification (2) 2.2 Risk analysis (2) 2.3 Risk evaluation (2) 2.4 Risk treatment and response (2) 2.5 Risk monitoring and continual review (2)