Alexus Ontiveros
Identifying and
Managing Risks
Practice identifying and managing risks by ranking possible solutions
to a problem. Complete the following steps.
1.
Save this file with a new name
Click the File tab, click Save As, add your name to the end of the filename, then
click Save.
For example, save this file as
PS1-Y7 Sharon Rodriguez.docx
.
2.
Get ready
Read the following description of a problem.
Problem
: Quest sales so far this year are weak. What can the company do to
increase sales?
3.
Now you try it
In the following table, complete the following risk/reward table to score each
solution according to the risks and rewards it presents. Assign a score of High,
Moderate, or Low to each option. Identify the preferred alternative.
Option
Potential Reward
Potential Risk
Increase tour prices
moderate
low
Offer popular tours more
often
low
moderate
Cut expenses, including
staff
low
high
In the following space, explain why you assigned the scores you did.
Option 1. I choose a moderate to low ratio to increase tour prices because if
people buy the tickets at the same rate, it will increase their revenue, and the
potential risk would be low, given that they are not selling fast enough but
with the price increase it balances it out.
Option 2. I choose a low-to-moderate ratio because I think showing the popular
tours too often will decrease their revenue, making it hard to increase the
prices when doing the popular tours. The risk here would be moderate
because it could or could not be beneficial.
Option 3. I chose a low-to-high ratio for cutting expenses, including staff because.
I don’t think they would increase their revenue by a lot by cutting back expenses
You Try It
