ATTEND THE WORKSHOP
(please note workshop during documents will not be released until all workshops
are complete)
The final date for submission of this assessment without penalty is
23 November 2016
Assessment will be accepted and sent for marking 14 days prior to the due date
Late Penalty System
Please refer to the Student/Programme Handbook
This module is being delivered through the Manchester Blackboard virtual
learning environment.
All assessments must be submitted through Blackboard at:
http://online.manchester.ac.uk
If you have any technical difficulties using Blackboard, please visit our
support pages at: http://www.studentnet.manchester.ac.uk/blackboard
Submitting your Assignment
1. Assignments should be typed using a 10 or 11 point font (Times Roman or similar if
possible), with double spacing and a 4 cm margin on the right-hand side of the page.
Please set the page size to UK A4. All pages must be numbered.
2. Assignments should be submitted in either Microsoft Office and/or PDF format (.doc,
.docx, .pdf etc.). File names should be kept simple and only contain alphanumeric
characters (a-z0-9), spaces and underscores (e.g. Valid_filename_1.doc). Files with
other characters such as apostrophes, brackets or commas may not be accessible by
markers.
3. Assignments may be uploaded only once; substitutions are not permitted and students
should therefore ensure that the version uploaded is their final submission.
4. Please ensure you include your student number and the assignment reference
(RskM/StudentNumber/Jul16/2) in all submitted assignments and that assignments
are paginated. Failure to do this may lead either to a grade not being assigned or being
wrongly assigned
5. If you are experiencing any difficulty in uploading your assignment to Blackboard, please
email a copy of the assignment and a screenshot of the error message immediately to
your local centre/Student Adviser.
WARNING: Once submitted no substitute assignments will be allowed
Please ensure you include your student number and the assignment reference (RskM/Student
Number/Jul16/2) in all submitted assignments and that assignments are paginated. Failure to do this may
lead either to a grade not being assigned or being wrongly assigned
RISK MANAGEMENT
COURSE ASSESSMENT 2
ONLY TO BE SUBMITTED BY STUDENTS UNABLE TO
ATTEND THE WORKSHOP
In Chapter 14 in Merna & Al-Thani (2008), Corporate Risk Management (2nd Edition), Wiley,
a Case Study – Risks in Projects in the Pharmaceutical Industry are discussed. On page 324
Figure 14.2 illustrates a typical cumulative cash flow over the patent life of 25 years of a
drug.
a) Chose a drug of your choice and perform a qualitative risk analysis identifying FIVE
major risks you perceive in the DDP and 5 major risks in the Sales phase. Illustrate
these risks in a risk register showing severity and how the risks can be mitigated.
(10% of total mark)
b) Using a cumulative cash flow diagram as illustrated on page 324 perform a
quantitative deterministic analysis based on the risks identified in part (a) of this
assignment. You should choose CAPEX, OPEX and Revenues to develop the
cumulative cash flow diagram and determine the NPV and IRR, payback period and
cash lock-up of the base case before assessing the risks for the optimistic and
pessimistic scenarios over the patent life of the drug. A sensitivity analysis illustrating
the risks should be performed against IRR.
(25% of total mark)
