The project manager of an organization is tasked with the risk management portion of a project. The organization has already established impact levels and corresponding values for risks affecting both schedule and cost. Furthermore, they have defined probability levels for the occurrence of risks. The pertinent information is summarized in the following tables Description of Impact Levels Impact Very Low Low Medium High Very High Description Delays or budget overrun by 5 % Expedited project or additional gain by 5 % Delays or budget overrun by 10 % Expedited project or additional gan by 10 % Delays or budget overrun by 20% Expedited project or additional gain by 20 % Delays or budget overrun by 40 % Expedited project or additional gain by 40 % Delays or budget overrun by 50 % Expedited project or additional gain by 5 % Probability of Occurring Levels Probability Very Low Low Medium High Very High Value 0.05 0.10 0.30 0.50 0.70 The project team has meticulously identified six potential risks that could impact the project. For each risk, they have defined both the impact levels and the probability of occurrence: R1- Earthquakes: The industrial plant is situated in an earthquake-prone area, with a medium probability of occurrence. An earthquake could result in a significant delay and a budget overrun of 50%. R2- Staff Strike: There is a high likelihood of a general strike due to low salaries within the organization, potentially causing delays of up to 40%. R3- Troublesome Scope: A challenging aspect of the project, if not adequately defined, could lead to a budget overrun of 20%. The probability of this occurring is high. R4- Post-COVID Delivery Issues: Common delivery problems persist after the COVID 19 pandemic. With a high probability of occurrence, these issues could lead to delays of up to 20%. R5 Additional Markets: The client informs the project manager about their contemplation of adapting the product for a different market, offering the opportunity for bidding on the work. This expansion into additional markets could result in an additional gain of 40%. The probability of this occurrence is assessed as medium. R6 Industrial Wastewater to Municipal Sewage: Upon investigation, the project manager uncovers the possibility of the local city council altering the bylaw to permit industrial facilities to discharge into sewage systems. While the plant currently lacks a connection to the sewage system, if connected, operational costs could be reduced by 40%. However, the probability of this bylaw change is evaluated as low. Based on the information described, answer the following questions: a) Create the probability-impact matrix for this project (4 marks) b) Which two threats should the project manager prioritize? (3 marks) c) Which opportunity should the project manager prioritize? (1 marks) d) Indicate the type risk strategy the organization or project manager is adopting for each risk (6 marks) R1: Get the plant insured by an external party. E R2: Your organization decides that if there is a strike, there is no useful way to minimize the project. R3: The project team decides to remove the troublesome scope from the project. R4: Assign a team member to frequently visit the seller's manufacturing V. facilities to learn about problems with deliveries as early as possible. V. R5: Decision can only be made by Senior Management and Sponsors. R6: The project manager knows a contractor is about to break ground in the adiacent lot and contact him to discuss the possibility of connecting the plant to the sewage system at the same time. This will result in gains for both contractor and the organization. e) Create a risk register with all the information in Question 3 following all recommendations discussed in class for this tool. You do not have to include the trigger column in the risk register. (4 marks)