A company may experience a number of adverse events with different impacts. It is possible to use a simulation model to determine the possible financial impact. A risk manager has created the following adverse events with their possibility of occurring. Note that these 10 possible adverse events are probabilistically independent of one another. Each event has a possible, random financial impact that is normally distributed with the given means and standard deviations in this table:

Event Probability Financial Impact (Normally Distributed) of Occurrence Mean Std. Dev. Major failure of IT system 0.010 $500,000 $100,000 Problem with manufacturing process 0.050 $50,000 $5,000 Serious illness of a board member 0.050 $100,000 $25,000 Employee wins law suit 0.080 $250,000 $25,000 Entry of new competitor 0.250 $400,000 $100,000 Failure of new product launch 0.150 $300,000 $50,000 Strengthening of dollar exchange rate 0.350 $100,000 $40,000 Fire in head office 0.020 $250,000 $100,000 Fraud 0.005 $500,000 $50,000 Confidential data lost 0.010 $300,000 $30,000 Large customer goes bankrupt 0.020 $150,000 $50,000 Major failure of IT system 0.010 $500,000 $50,000 Problem with manufacturing process 0.050 $50,000 $15,000 Serious illness of a board member 0.050 $100,000 $20,000 Employee wins law suit 0.080 $250,000 $100,000 Entry of new competitor 0.250 $400,000 $75,000