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Match the descriptions shown in the boxes below with the method of quantifying risk exposure it best describes.




V buys vegetables and fruit from three farms located in a different part of V's country and sells them to large supermarket chains.
A recent newspaper magazine had an article on these farms showing that the farms employ illegal immigrants whose status was used by the factory's owners to force them to work for low wages and in unpleasant conditions. They are forced to live in small overcrowded caravans with no running water. They are also given meals which are cold and poor quality. These farms are located in a developed country with strong labour laws.
Classify each of the following statements as true or false.




L's risk register currently states the likelihood of risks m terms of their estimated percentage probabilities. The risk committee cs considering classifying risks using a three point scale high, medium and low.
Which TWO of the following are true?

A. High, medium, low will eliminate subjectivityB. Everyone will agree the meaning of high, medium and lowC. High, medium and low will be easier to useD. Quantifying probabilities as percentages gives greater scope for describing risksE. Using percentages will be more scientific

Answer: D,E


P is a consulting firm that provides technical advice to the oil industry. The company has consulting teams that specialise in specific areas, namely drilling, off-shore, health and safety, oil well management and ng management. Each team's consultants are charged out to clients at the same daily rate.
The demand for different skill sets varies constantly due to factors such as movements in oil prices.
Exploration increases when the oil price rises and there is a greater focus on maintaining existing wells when the price fans.
The performance of P's sales team is measured in terms of revenue, based on the number of consultancy days sold Frequently the sales team agree to contracts without first checking that the relevant consulting team has consultants available. The work then has to be undertaken by subcontractors at P's expense. Sub-contractors cost more and their use can also lead to P's own consultants being under-utilised when assignments could have been scheduled more efficiently.
Which TWO of the following would correct this behavior?

A. Award additional incentives for selling P's own staffB. Employ the sub-contractor stall as lull time P employees.C. Measure the performance of P's sales team on margin contribution rather than revenue.D. Allow P's consultants to go out on any job, regardless of specialism.E. Reduce the number of consultants within P's teams.

Answer: A,C



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