Question

Write a short essay (about one page [~500 words]) answering the following question:

Risk management personnel tell you that each person who has an adverse event may sue your company which, on average, will cost the company $2,000,000 for each adverse event (some people never sue, some get settled for less than this amount, some get tried by a jury and result in a larger judgment, but this is a reasonable average). Calculate how much money your company will likely lose in these cases each year. Compare that to the amount of money you will likely make in revenue (number of test strips you will likely sell each year times cost of a test strip, ~$1 per test strip). Write a brief (<1 page) essay discussing the ethics.

Answer 1

risks are vital to companies seeking market success.organizational innovation and new competitive advantage leading to short and long term profitablity.in case risk and oppurtunity are two sides to the same coin.
a.taking social and political risk into management decision making
b.reporting of companies risks into internal and external decicion making.
c.bussiness continuity management something like going concern concept
d.identifying,managing and measuring companies risks for improved performance.

above four management accounting guidelines on risk provide excellent coverage on many of the most.

as per consideration of above two scenarios,those are extremes.there will also be law suits that will come from middle ranges.this market share used to caluclate income will be the baseline percentage which eill use against    the number of instances of lawsuits occured per year.these will be likely,add an additional 0.5%..

contributing to the combined total readings of 109.4 errored readings per year.by using the market number of share ans added 0.1% other range of errors m responsible and projected number of law suits per year will be risk...