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Answer:

As per Priority matrix, Risk is calculated by Risk priority number. risk priority number is calculated as
follows: RPN = S * O * D.

S= Severity

O= occurrence

D= Detection

In first scenario, Sparkling lake water company find out that all bottle are contaminated with E.coli which
is gram negative bacteria and can cause death in infants. Severity is too high, chances of occurrence is
also high, as it contaminated all bottles, while its already detected, therefore its controllable. However,
RPN will be too high because of severity and occurrence. Priority to fix this problem is high as it will
spread among large population.

In second scenario, drinking lake is contaminated with mercury, level is above guideline level which
might not cause severe consequences. Area of occurrence is too small and its easily controllable. Source
of contamination is also detected, Therefore it would RPN number would be less. As Event is possible
and minor, therefore it would be fixed on second priority

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