McMaster Project Risk Management Analysis

Project: Tanaiyo Leasing Company

Project Manager:Manager Risk & Investments
Date updated: 2005-05-05
Reporting date 2005-04-11 2005-05-05
Maximum risk for a single risk factor 10 16
Total risk rating over all risk factors 30 61
Orig Rank

Probability

Probability

Strategy
Exposure

Exposure
Risk Title Effect Trigger Event Risk Management Tasks, Action Log

Impact

Impact
Staff Turnover Reduced person-hours available to do 2 1 2 4 4 16 Market Demand Mitigate Continuos evaluation of strategic human capital requirements with an objective to
the work results in the schedule being retain and retrain emplyees through benefits tied to performance
extended
Capital Risk Affects company's ability to get finance 1 4 4 1 5 5 Imparement, cost of Mitigate maintain high value assets in the capital structure with strategic intent of spreading
and impaires shareholders value Capital risk across the EAC, increasing the value of assets in the portfolio, using quality
holdings of bonds ,improving overall diversification of company's revenue sources

Revenue Risk Company's revenues are susceptible to 4 4 5 5 5 5 Sectoral Weights Diversify We shall maintain a deep and wide approch in aprroving quality leases within
sectoral risks of the clients business diversified sectors of the economy, no single company can access finance upto
10% of the companies assets, all contracts must be bank guarateed and
appropriate insurance offered
Liquidity Risk Affects ability of company to finance 2 5 10 3 5 15 mismatch of Mitigate Manage effective liquidity management policies, planning framework for obligations
approved leases and pay debt obligations as they as they fall due. Maintain closed loop treasury management within the ERP.
obligations fall due
Economic Risk Affects the compaies revenues and 2 3 4 4 5 9 Political Legal Mitigate Implement ratios in overall portfolio management with insight to sectoral economic
sectoral weights of overall portfolio risk management, Diversify revenues across wide international macro and micro
performance market segments.
Gorvernance,c low investor Confidence in accessing 1 2 2 1 4 5 fraud, Mitigate Continuously test the risk framework, training on the ERP risk framework
ontrol & funds for portfolio growth, high fin.misstatements,T
ompliance. regulation and audit fees, tax ax calculations
implications
Corporate Minimises the overall company abilty to 1 3 3 2 4 6
Reputation raise funds for future growth.

\\pearl\data\projects\grail\RiskManagement\51105639.xls 1 of 6
Risk Strategies
Avoid
Mitigate
Accept
Remove
Reduce
Risk Matrix

0 0 0 0 0
9-10

0 0 0 0 0
7-8
Impact

0 0 0 0 0 Zone Total:
5-6 0

0 0 0 0 2 Zone Total:
3-4 3

0 0 0 0 1 Zone Total:
1-2 0
1-20% 21-40% 41-60% 61-80% 81-100%
Probability
 Do NOT Edit this sheet. This sheet provides the formulas for the Matrix Sheet

1-2 3-4 5-6 7-8

1-20% 1-20% 1-20% 1-20%
ProbabilityImpact
Probability
Impact Result Probability
ImpactProbabilityImpact Result Probability
Impact
Probability
Impact Result Probability
Impact
1% 1 1% 2 0 1% 3 1% 4 0 1% 5 1% 6 0 1% 7

21-40% 21-40% 21-40% 21-40%

ProbabilityImpact
Probability
Impact Result Probability
ImpactProbabilityImpact Result Probability
Impact
Probability
Impact Result Probability
Impact
21% 1 21% 2 0 21% 3 21% 4 0 21% 5 21% 6 0 21% 7

41-60% 41-60% 41-60% 41-60%

ProbabilityImpact
Probability
Impact Result Probability
ImpactProbabilityImpact Result Probability
Impact
Probability
Impact Result Probability
Impact
41% 1 41% 2 0 41% 3 41% 4 0 41% 5 41% 6 0 41% 7

61-80% 61-80% 61-80% 61-80%

ProbabilityImpact
Probability
Impact Result Probability
ImpactProbabilityImpact Result Probability
Impact
Probability
Impact Result Probability
Impact
61% 1 61% 2 0 61% 3 61% 4 0 61% 5 61% 6 0 61% 7

81-100% 81-100% 81-100% 81-100%

ProbabilityImpact
Probability
Impact Result Probability
ImpactProbabilityImpact Result Probability
Impact
Probability
Impact Result Probability
Impact
81% 1 81% 2 1 81% 3 81% 4 2 81% 5 81% 6 0 81% 7
 7-8 9-10
1-20% 1-20%
Probability
Impact Result ProbabilityImpact
Probability
Impact Result
1% 8 0 1% 9 1% 10 0

21-40% 21-40%
Probability
Impact Result ProbabilityImpact
Probability
Impact Result
21% 8 0 21% 9 21% 10 0

41-60% 41-60%
Probability
Impact Result ProbabilityImpact
Probability
Impact Result
41% 8 0 41% 9 41% 10 0

61-80% 61-80%
Probability
Impact Result ProbabilityImpact
Probability
Impact Result
61% 8 0 61% 9 61% 10 0

81-100% 81-100%
Probability
Impact Result ProbabilityImpact
Probability
Impact Result
81% 8 0 81% 9 81% 10 0