Problem: A project team analyzed the risk of some important equipment not arriving at the project on time. The team identified three pieces of equipment that were critical to the project and would significantly increase costs if they arrived late. One of the suppliers, who was selected to deliver important equipment, had a history of being late on other projects. The supplier was good, but often took on more work than it could deliver on time. This risk event (the identified equipment arriving late) was classified as high probability with high impact. The other two pieces of equipment were potentially high impact on the project, but with a low probability of occurrence.
Questions:
What risk responses could be applied for each of the events to show the severity of each as low, high and moderate?
What are the justifications for each?