Telewonder in Slovobia Slovobia is a former Soviet Republic.  It has a population of 30 million people, 35% of whom are ethnic Russians and 65% of whom are Turkic Muslims. Slovobia has identified the establishment of modern telecommunications capabilities as a high priority.  Such capabilities are expected to cost 20 billion Slovars over a 5-year period.  The official exchange rate is $1 = 10 Slovars.  The black-market rate fluctuates wildly, but basically converges at $1 = 25 Slovars. Slovobian authorities are hopeful that a low-interest International Development Association (IDA) loan can be obtained to cover a third of the anticipated project costs.  They want the telecommunications contractor to supply credit for 10% of the project costs.  The remaining funds will come from a variety of sources, including the Telecommunications Ministry and commercial banks. Telewonder Telecommunications Corporation, an Australian provider of telecommunications services, has been approached by Muhammed Farsi -- the Minister of Telecommunications -- about its interest in bidding on the project.  He informs Telewonder that an RFP (request for proposal) will be issued shortly after Slovobia holds its first democratic election in history.  Unfortunately, elections recently had to be rescheduled owing to a fundamentalist Muslim insurgency in the southwest portion of the country. Questions 1. Risk identification – What are the risks Telewonder faces if it obtains a contract to develop telecommunications capabilities in Slovobia? The main steps of the risk identification process are as follows:  •Create a checklist or Work Risk  of all possible risk events  •Work Risk Breakdown Isolate the risk events that are more pertinent to the project under review through a risk classification process.  Business risks.  Insurable risks.  Operational risks.  Technical risks.  Political risks. etch CHAPTER 4 of the Book refers to other tools for risk identification which one is the best to be used here?  2. Risk impact analysis – What are the consequences to Telewonder if the anticipated risks become real? examine risk impacts, both qualitative and quantitative, requires people to examine the consequences of bad things happening. If risk event X occurs, what will be the physical consequences? The financial consequences? The impact on the well-being of the public? The impact on the reputation of the organization? And so on.  3. Risk response planning – What can Telewonder do to handle risks? develop risk-handling strategies, focuses on preparing  to deal with the risk events that you have identified. As you will  see in Chapter Eight, there are some standard strategies that you can  employ. For example, with risk transfer, you may attempt to shift the  burden of dealing with a risk event to a third party (for example, an insurance company). Or with risk acceptance, you recognize that bad  Practical Limitations of Risk Management 19  things happen and are .

1. Telewonder in Slovobia
Slovobia is a former Soviet Republic. It has a population of 30
million people, 35% of whom are ethnic Russians and 65% of
whom are Turkic Muslims.
Slovobia has identified the establishment of modern
telecommunications capabilities as a high priority. Such
capabilities are expected to cost 20 billion Slovars over a 5-year
period. The official exchange rate is $1 = 10 Slovars. The
black-market rate fluctuates wildly, but basically converges at
$1 = 25 Slovars.
Slovobian authorities are hopeful that a low-interest
International Development Association (IDA) loan can be
obtained to cover a third of the anticipated project costs. They
want the telecommunications contractor to supply credit for
10% of the project costs. The remaining funds will come from a
variety of sources, including the Telecommunications Ministry
and commercial banks.
Telewonder Telecommunications Corporation, an Australian
provider of telecommunications services, has been approached
by Muhammed Farsi -- the Minister of Telecommunications --
about its interest in bidding on the project. He informs
Telewonder that an RFP (request for proposal) will be issued
shortly after Slovobia holds its first democratic election in
history. Unfortunately, elections recently had to be rescheduled
owing to a fundamentalist Muslim insurgency in the southwest
portion of the country.

2. Questions
1.
Risk identification
– What are the risks Telewonder faces if it obtains a contract to
develop telecommunications capabilities in Slovobia?
The main steps of the risk identification process are as follows:
•Create a checklist or Work Risk of all possible risk events
•Work Risk Breakdown Isolate the risk events that are more
pertinent to the project under review through a risk
classification
process.
Business risks.
Insurable risks.
Operational risks.
Technical risks.
Political risks. etch
CHAPTER 4 of the Book refers to other tools for risk
identification which one is the best to be used here?
2.
Risk impact analysis
– What are the consequences to Telewonder if the anticipated
risks become real?
examine risk impacts, both qualitative and quantitative,
requires people to examine the consequences of bad things
happening.
If risk event X occurs, what will be the physical consequences?
The financial consequences? The impact on the well-being of
the public?
The impact on the reputation of the organization? And so on.

3. 3.
Risk response planning
– What can Telewonder do to handle risks?
develop risk-handling strategies, focuses on preparing
to deal with the risk events that you have identified. As you
will
see in Chapter Eight, there are some standard strategies that you
can
employ. For example, with risk transfer, you may attempt to
shift the
burden of dealing with a risk event to a third party (for
example, an
insurance company). Or with risk acceptance, you recognize
that bad
Practical Limitations of Risk Management 19
things happen and are prepared to move forward nonetheless;
however,
you set aside contingency reserves to deal with the possible
consequences
of untoward events. Or with risk mitigation, you try to fix
the problems so that they will not arise. Or finally, with risk
avoidance,
you stay away from doing things that get you in trouble.