Quantitative Tools and Risk Management Process

Instructions

Part 2Below I give you four examples of risky situations. Risk may be interpreted (in this case) as a potential loss or disruption. Using the risk management information from Lecture 2, create a risk treatment strategy for each of these risk scenarios. List which category of risk treatment this falls under and tell us why you chose that risk treatment strategy.A full credit response will include the following:A treatment scenario for each risk.An explanation of which risk treatment category is being applied and WHY you applied this category. 1. You own a two-location furniture store in Peoria, Illinois.  In order to make home deliveries to your customers, you own three panel trucks which run from 9 am to 7:30 pm Monday through Saturday.  There is a chance that one of your drivers will cause an accident which results in property damage, bodily injury, or death.2. You own a massage therapy business and day spa in Owens, Nevada.  The US federal government just purchased land throughout your town for the purpose of constructing a new interstate roadway and railroad.  Part of the land acquisition is adjacent to your property.  Your customers, who come to your business to relax and relieve stress, will be exposed to the sounds of construction for six years followed by road and train traffic thereafter.3. You are the operations manager for a casino in New Orleans, Louisiana.  For the past year, once or twice per week $200-$500 in chips goes missing from the Blackjack tables.4. You are the office manager for a large firm in Manhattan.  Your location has 2,500 employees and 50 Xerox copiers.  A Xerox copier has an expected life of 10 years but sometimes they wear out or break sooner than that.  A new copier costs $20,000.  The revenue generated through your office is $1 billion per year.Search entries or author

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