SECTION B

QUESTION $2$

$2\mathrm{.}1.$ The following information pertains to a Water purification project and the probability and impact of the risk

in the Water purification project are gauged using a scale from $1$ to $5,$ where $1$ signifies the least likelihood

and $5$ denotes the highest likelihood of occurrence. The risk identification or activities assigned are from

R$1$ to $R8.$

The risk profile of the project suggests that supplier delays in delivering purification equipment have a

likelihood of $4$ with a risk impact of $4($R$1).$ The responsible project owner is the procurement manager.

Operational distribution due to extreme weather events has a likelihood of $2$ and a risk impact of $4($R$7).$

The project owner is the project manager. The regulatory approval delays have a likelihood of $3$ and an

impact of $5($R$2).$ The risk owner is the project manager. Skilled labour shortages have a likelihood of $3$ and

a risk impact of $3(R6).$ The project owner is the HR manager. The technical issues with purification

technology have a likelihood of $2$ and a risk impact of $4(R3).$ The project owner of this risk element is the

technical lead. Budget overnuns due to unforeseen costs have been identified as having a likelihood of $4$

and a risk impact of $4($R$5).$ The project owner is the finance manager. Community resistance or opposition

has a likelihood of $3$ and an impact of $3($R$8).$ The external stakeholder in this activity is the community

relations manager. Environmental challenges affecting site selection have a likelihood of $3$ and a risk impact

of $3($R$4).$ The project owner of this risk element is the environmental consultant.

Based on the details provided above and utilizing the relevant risk documentation, determine the risk level

attributed to each identified risk factor by means of calculation.

$(10$ Marks$)$

$2\mathrm{.}2.$ Using the risk documentation developed in question $2\mathrm{.}1$ construct an applicable matrix to demonstrate the

location of risk from a viewpoint of probability and impact ranking.

QUESTION $3$

$3\mathrm{.}1.$ This document is purported to grant authorization for project initiation and bestow upon the project manager

the authority to leverage organizational resources for project endeavors. Given the definition provided,

discuss the significance of the contents of this document.