Reference no: EM133320205

The COVID-19 pandemic changed the world as we knew it. One of the main changes brought about was the necessity to work remotely. This requirement triggered the need for faster, cheaper and more reliable data network. Fibre optic was an obvious solution to meet this need and therefore all businesses both private and government decided to migrate to remote working. Due to this requirement, government started issuing tenders to its their fibre optic network. A small privately owned and operated fibre optic installation company tendered for a contract to supply and install fibre optic cable for the municipality in Pietermaritzburg KZN in July 2021. They were informed in October 2021 that they were successful based on the competitive bid they submitted. The MD of the company sat at his desk with the letter of award in his hands and started reflecting on the events leading up to the letter. The journey started with a tender clarification meeting where the scope of work was presented and discussed. The presentation was very poor in trying to explain what the actual scope. This is the first time that the small company is doing business with the municipality and decided to estimate the project using lean methodologies. A few months after their submission, the headlines in the local newspaper were that the Pietermaritzburg municipality has been placed under administration. The MD heard of the risk management approach from one his friend and thought that it may be a good idea to use it to understand his risks in this new venture. He approaches you as the risk specialist and requests your services to advise him on what to do. Provide responses to his questions listed below.

1. How can risk management assist him?

2. What are the steps involved in Risk Management?

3. Which type of risk analysis should he use and why?