Question

ABC Company manufactures electronic consumer products. The company’s manufacturing plant is highly automated and located in Canada. However, it purchases components from three companies in Asia. The majority of its sales are in Canada, but US sales represent a growing percentage. A concern for ABC is the US sales component. Look at the different Risk Treatment Techniques and consider which, if any, you would apply to the issue of increasing US sales for the company. If you choose not to treat the issue, explain why and what the possible outcomes would be for ABC.

- Choose risk treatment(s) based on the information you have been given above. Identify and analyze the risk and then figure out the risk treatment(s).

Answer 1

Risk treatment in above case is that the ABC company can perform by increasing the sales with US companies because it is increasing its profit percentage and every organisation works to perform better and the maximum profit.

The Risk treatment is best done when the risk manager is aware of its possible outcomes and the consequences which will be effective for the decision of the organisation.

In the above case risk treatment is done after when it is get well analysed and its consequences which affect the future profit of the organisation.

To enhance the profit and business dealing with the US and other Asian countries will be well planned how much and when to invest and what will be beneficial for the organisation must be implemented.