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Procurement Risk and Contract Management

You are required to produce a risk assessment for the Yang Sing Hotel Project. In your risk assessment you are required to
a. Identify the risks facing the project (both threats and opportunities) – explaining how you determined the risks and what methods you could use: no more than 10 significant risks should be identified and you should include a justification of the selection of these risks.(300 words max) 20/100
b. You must then analyse each risk giving an indication of the probability/likelihood and impact/consequence of each risk on the project objectives. Your estimation of probability must give the evidence for your risk score from a reliable/reasonable data source and your estimate of impact must be based on a reasoned calculation of cost/profit (300 words max). 20/100
c. You must map each risk onto a risk matrix which indicates the risk appetite of the project owners. You should justify the risk appetite you have identified (200 words max plus diagram). 20/100
d. For each risk you should produce a risk action plan in the following format (150 words max per risk) 30/100

Sample Solution

Chinese militarization in the Spratly Islands has proven much more contentious in recent years as they have seen both rapid island reclamation as well as the introduction of unprecedented military capabilities. Moreover, the Spratly Islands are contested by China, Vietnam, Taiwan, the Philippines and Malaysia, and all have established constructions on some of the islands. China has been by far the most active in the expanding and equipping its islands, including the construction of large anti-aircraft guns. Experts also suspect that close-in weapons systems (CIWS) have been introduced to some of the islands to protect against cruise missile strikes. The placement of these defences shows how China is willing to defend these islands and are prepared to respond in the case of an attack. Of the islands China has developed, Fiery Cross, Mischief and Subi Reefs are the by far the most advanced (see Figure 3). Each has enough hangars to accommodate 24 combat aircraft and four larger transport planes, bunkers to house missile launchers, as well as radars that allow for the monitoring of the surrounding area (AMTI 2017). By March 2018, China had verifiably landed military transport aircraft on all three of its main islands in the Spratlys marking a major milestone in developing its military capabilities in the region. According to U.S. intelligence, China also deployed YJ-13B anti-ship cruise missiles and HQ-9B surface to air missiles on the 2nd May. Offensive capabilities such as air power, radars and missiles give China a sizable advantage in the region, causing concern for both the U.S. and other claimant countries. Overall, China’s military capabilities in the SCS are unparalleled, with Admiral Philip Davidson, Head of US Pacific Command stating that “China is now capable of controlling the South China Sea in all scenarios short of war with the United States” (CNN 2018). Figure 4 shows the observed, reported and expected capabilities China has or is likely to have from its four most equipped islands: Woody island in the Paracels and Firey Cross, Mischief and Subi Reef in the Spratlys. Once these capabilities are fully operational, China will have comprehensive control over the region. This military capacity gives China the upper hand in diplomacy and as of present, has granted it immunity from abiding to international arbitration. Further militarization has shown China’s commitment to its sovereignty claims and the lack of commitment it has to abiding by UNCLOS. The long-standing failure to comply with international l
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