The chart below contains a description of top risks, inherent risk assessment, three risk response alternatives, and residual risk assessment for each response alternative for Jones Hiking Trails. Risk Inherent Risk Likelihood Hikers on trials become hurt. 18% Hikers could sue. Inherent Risk Impact $10,023,000 Calculate the residual risk for alternative A for Jones Hiking Trails. a.$1,009,400 b.$2,524,500 c.$784,030 d.$1,804,140 Risk Response Alternatives A-Require safety training. B-Require specific hiking gear. C-Take no action. Residual Risk Likelihood 13% 20% 25% Residual Risk Impact $6,031,000 $5,047,000 $10,098,000
The chart below contains a description of top risks, inherent risk assessment, three risk response alternatives, and residual risk assessment for each response alternative for Jones Hiking Trails. Risk Inherent Risk Likelihood Hikers on trials become hurt. 18% Hikers could sue. Inherent Risk Impact $10,023,000 Calculate the residual risk for alternative A for Jones Hiking Trails. a.$1,009,400 b.$2,524,500 c.$784,030 d.$1,804,140 Risk Response Alternatives A-Require safety training. B-Require specific hiking gear. C-Take no action. Residual Risk Likelihood 13% 20% 25% Residual Risk Impact $6,031,000 $5,047,000 $10,098,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The chart below contains a description of top risks, inherent risk assessment, three risk response alternatives, and residual risk
assessment for each response alternative for Jones Hiking Trails.
Risk
Inherent
Risk
Likelihood
Hikers on trials become hurt. 18%
Hikers could sue.
Inherent Risk
Impact
$10,023,000
Calculate the residual risk for alternative A for Jones Hiking Trails.
a.$1,009,400
b.$2,524,500
c.$784,030
d.$1,804,140
Risk Response
Alternatives
A-Require safety
training.
B-Require specific
hiking gear.
C-Take no action.
Residual
Risk
Likelihood
13%
20%
25%
Residual Risk
Impact
$6,031,000
$5,047,000
$10,098,000
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