Reference no: EM132847420

Question 1:

You have been hired to advise the executive team of a construction and engineering firm on risk matters. On the first week of work, you had to answer a broad range of questions on risk management.

Mrs. Loo, the Chief Operations Officer, has asked you to prioritise five (5) different risks:

(i) A possible billing dispute with a local developer over a serious $ amount

(ii) An unlikely accident on one of the sites endangering the lives of the neighbourhood

(iii) A routine rise in foreign workers' wages, which will affect the profit margin by 0.03%

(iv) The final adoption of a new law forcing construction firms to contribute 5% of their profit to an environmental preservation fund

(v) A projected 50% decline in long-term demand for office space, which represents 90% of the firm's revenues

(a) Analyse the different risks by plotting them on a risk matrix.