Hi, I am struggling with the ambiguity of this question - particularly in relation to the second part. My natural instinct was to talk about NPV, IRR and payback period for the viability, and then in relation to the risks, I wanted to talk about DR HUB (how to identify and analyse risks in project appraisal, as these are the factors to be considered to help identify and analyse risks). I see the answer has gone down the route of actually listing the risks - it's not obvious to me from the question that this is what they want! Has anyone interpreted the question in a different way? Thanks, Fran
Hi Frances The question is asking about "the factors that need to be considered" when assessing the viability and identifying/analysing the risks that relate to this project, rather than asking for how the assessments would be done or the methods that would be used. Your answer seems to be more along the lines of the latter. Instead, you would need to focus your answer on the things that the organisation would have to think about that would impact on the viability and risks of this specific project. So, for example, factors that would influence the profits that could be generated from doing it (e.g. product demand, pricing, costs, tax) and factors that could generate risk or volatility in relation to those anticipated profits, including aspects such as regulation, the political environment and other external environment influences. Hope that makes a little more sense.
