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4. You have completed an enterprise risk management (ERM) First-Filter risk assessment identifying 85 risks across the corporation. The Chief Risk Officer (CRO) requested three
4. You have completed an enterprise risk management (ERM) First-Filter" risk assessment identifying 85 risks across the corporation. The Chief Risk Officer (CRO) requested three Second-Filter ROI analyses including: (1) Manufacturing Contamination Risk; (2) Geopolitical Risk; and, (3) Cyber Security Risk. You have performed the three "Second-Filter analyses yielding the following table of results. Risk Expected NPV Before Invest ($M) Expected NPV After Invest - including Cost of Invest ($M) (30.79) (131.00) (23.50) Expected Gain ($M) Investment Investment ($M) Productivity Manufacturing Contamination Geopolitical Cyber Security (75.27) (214.04) (170.90) 44.48 83.04 147.40 35.40 5.80 3.70 1.28 14.75 41.36 a) Sketch the Investment Productivity Curve (including the numerical values on the axes). b) What recommendations do you provide the CRO regarding which risks to pursue with mitigation investments and the overall risk mitigation budget?| 4. You have completed an enterprise risk management (ERM) First-Filter" risk assessment identifying 85 risks across the corporation. The Chief Risk Officer (CRO) requested three Second-Filter ROI analyses including: (1) Manufacturing Contamination Risk; (2) Geopolitical Risk; and, (3) Cyber Security Risk. You have performed the three "Second-Filter analyses yielding the following table of results. Risk Expected NPV Before Invest ($M) Expected NPV After Invest - including Cost of Invest ($M) (30.79) (131.00) (23.50) Expected Gain ($M) Investment Investment ($M) Productivity Manufacturing Contamination Geopolitical Cyber Security (75.27) (214.04) (170.90) 44.48 83.04 147.40 35.40 5.80 3.70 1.28 14.75 41.36 a) Sketch the Investment Productivity Curve (including the numerical values on the axes). b) What recommendations do you provide the CRO regarding which risks to pursue with mitigation investments and the overall risk mitigation budget?|
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