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.
1. Risk identification – What are the risks Telewonder faces if it obtains a contract to develop telecommunications capabilities in Slovobia?
2. Risk impact analysis – What are the consequences to Telewonder if the anticipated risks become real?
3. Risk response planning – What can Telewonder do to handle risks?