Identifying and managing risk
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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
Low
High
Offer popular tours more often
Moderate
Moderate
Cut expenses, including staff
High
Moderate
In the following space, explain why you assigned the scores you did.
For increasing sales price, it will enhance risk for existing customers to leave or shift. And its reward in low amount for current position, increase profit may in this month sales.
Offer for tours have rewards for company to attract new customers or existing with interest in tours and services offered by company. There is risk of handling more offers and which should be use, need or requirement of customers need to know and offer with collaboration.
Cut off expenses best way to enhance profit and seems attract more customers if price decrease for them. There is risk of which expenses should be cut off and removing staff may create bad word of mouth for company.
Submit the document to your instructor as requested.