Section C $-$ Kaushik and Paulo Pool Case

The questions in this section is based on the following scenario, Answer ALL Questions.$$

Kaushik and Paulo are young entrepreneurs. They have a bit of money and have decided to open a community pool facility which would have several pools. One pool would enable swimming, one pool would be for kids, one pool would be heated for other leisure activities, and there would also be a family sized Jacuzzi. They plan to build the pool facility in the car park area at southeastern end of the Pickering Town Center Mall. This is within easy walking distance of the mall, and not too far from the bridge that goes across Highway $401$ to connect with the GO buses and trains. They also recognize that the Town of Pickering's Recreation Center is nearby and that there is a pool at that facility. They also recognize that they must get approvals from both the Town of Pickering and from the owners of the Pickering Town Center Mall. They also assume that if their personal funds are not enough to complete the project that they can get additional funding from their bank. In any case, they hope to have the pool facility ready by the middle of August $2025$ so that they can capture a part of the recreation market during the warm summer months as this is the peak season for recreational activities. They know that they would need an aggressive construction schedule, but they are hoping for the best. Before embarking on the project however they have hired you to do a risk assessment for the project.

You have already developed a Risk Management Plan for this pool project. You have also developed and will use the following risk categories and risk severity tables.

Risk categories:

Environmental

Financial

Health

HR

Legal

Market

Operational

Regulatory

Risk Severity Tables:

You have also started creating the risk register for the project and have identified the $10$ following risk events.

Question $50(1$ point$)$

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Increased operational costs from unexpected repairs or maintenance has been documented as a residual risk. What risk event might this be a residual risk of$?$

Question $50$ options:

a$)$

Construction delays due to contractor issues

b$)$

Equipment failure $($pumps$,$ heaters$)$

c$)$

Cost overruns in construction budget

d$)$

Supply chain delays for construction materials

Question $51(1$ point$)$

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Minor construction delays despite contractor penalties and oversight has been documented as a residual risk. What risk event might this be a residual risk of$?$

Question $51$ options:

a$)$

Failure to meet opening deadline $($August $2025)$

b$)$

Construction delays due to contractor issues

c$)$

Supply chain delays for construction materials

d$)$

Equipment failure $($pumps$,$ heaters$)$

Question $52(1$ point$)$

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Excess liability insurance needed despite obtaining comprehensive insurance has been documented as a residual risk. What risk event might this be a residual risk of$?$

Question $52$ options:

a$)$

Negative public reviews and reputation damage

b$)$

Insufficient personal funds

c$)$

Legal issues$$

d$)$

Competition from nearby recreation center

Question $53(1$ point$)$

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As a response to Risk event $11$ : Public health regulation changes you decide that such matters should be taken to a legal advisor for regulatory guidance. What type of risk response is this?

Question $53$ options:

a$)$

Avoid

b$)$

Transfer

c$)$

Mitigate

d$)$

Escalate