QUESTION ONE [25]1.1 analyse the various risk response strategies which an organisation may adopt. (12)1.2 what is the meaning of the term processes within the context of operational risk management. (13)QUESTION TWO [25]2.1 case study - the effect of risk transfer on risk management. (13)2.2 evaluate the significance of scenario analysis in risk management. (12)QUESTION THREE [25]3.1 Differentiate between speculative and event risks. (12)3.2 explain the meaning of the term downstream effect in risk management. (13)QUESTION FOUR [25]4.1 Describe the various activities conducted within the risk identification stage of risk management. (12)4.2 Explain the benefits associated with implementing Enterprise Risk Management. (13)
QUESTIONS ONE AND TWO ARE BASED ON THE FOLLOWING CASE STUDY: Risk Response Strategies - Saba Tower Uncertainties and risks are always associated with large real world projects and may obstacle and threaten projects in some ways. Failure in accurately identifying the project risks increases the total cost and may cause social and environmental damages as well as casualties during project execution. The aim of this study is to develop a mathematical programming model for selecting risk response strategies for construction projects. All risk response strategies for the analysed project have been identified and a mathematical model is presented based on project iron triangle; time. cost and quality to obtain the optimal risk response strategy for the construction project. Uncertainties and risks are the inherent characteristics of the real world construction projects. The project risk management deals with identifying and controlling the risks before they occur. Various risks happen in project execution phase which may reduce the performance efficiency and even cause the project failure. Therefore. the application of project risk management is essential in order to achieve optimal performance in construction projects. Risk identification is the first step of risk management process where the potential risks are identified. It is acrucial process to guarantee the project success and meet the project time, cost. quality and safety. Appropriate strategies should be performed for responding to risks, when the project risks are identified and analyzed. One of the first places to start identifying risks is the project itself. Some oi the planning processes can help you with the risk identification task. The project constraints. task list. and critical success factors can uncOver risks regarding the project itself. Risk management identies potential project obstacles early in the process and develops plans and strategiestoreduce or avoid their impacts. Responding to the risks is one of the vital steps of the mosrproposed models by different scholars over the past decades. Some models included some simple steps and some others consisted of REGENT Busmess scnom (RES) -JANUARY 2022 '2 BACHELOR OF COMMERCE YEAR 2 ACADEMIC AND ASSESSMENT CALENDAR - DISTANCE more sophisticated details. In recent years. various methods have been used to evaluate the project risks and different studies conducted on the area of risk management in more detail. Analysis checklists. SWOT approach, Delphi technique and multi-criteria decision-making techniques such as AHP are some examples of the techniques used in this field. Also. the Fuzzy Inference. Decision Support Systems and Expert Systems were proposed as newer methods. Recent studies remarkably show that the application of Fuzzy Logic in risk management has become a popular topic among scholars due to its compatibility with the nature of uncertainty and risks. The effects of risks can be evaluated by two main parameters: the probability of risk occurrence and the severity of risk. The severity of risk depends on many factors regarding human resource. workplace. materials. and equipment which cannot be easily quantified based on the traditional methods
