Risk & Value Management

Risk & Value Management

Part B.
This is an individual assignment (Equivalent of 2000 words)
Assignment Scenario
You are a project manager in a prefabricated concrete manufacturing company, Kuspra Ltd. The main
busmess of your company is the construction of houses for sale using its prefabricated components. Your
prefabrication plant is situated inside the Industrial Park of Blumac town and is close to three housing
estates and a small village, which in total have a population of about 3000 people (See map below). River
Cruze passes directly alongside your site boundary. The river is a successful habitat for several kinds of
fish, and supports a thriving local small-scale fishing industry. Your prefabrication plant has been in its
present location for over 25 years and is a prime location because of the nearby road and rail networks
which the firm uses to transport its raw materials and finished products.
Residential Estates
River Cruze
w-m/M/W -_ .. U.-
Fishin :« 0 Kuspra Ltd
Village
Industrial Park
(A i V.»
MAP OF BLUMAC SHOWING INDUSTRIAL PARK, RESIDENTIAL ESTATES & FISHING VILLAGE
In recent times, unusually heavy rains have caused the river to overflow its banks. This flooded your site
and caused a large leak from your cement storage silos into the river. In the summer of 2014, an
explosion in the plant spread toxic fumes to the surrounding residential area and the fishing village. This
has had serious health consequences, especially a dramatic increase in respiratory diseases, on the local
population for which your organisation is currently facing legal actions from various individuals and
interest groups. As a result of these incidents, a section of the local community has been quite vocal in
their objection to your continued presence at the site. However, because you employ approximately 300

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