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A healthcare equipment company has recently begun developing an enterprise-wide risk management system. It has administered a focused questionnaire on a sample of its top

A healthcare equipment company has recently begun developing an enterprise-wide risk management system. It has administered a focused questionnaire on a sample of its top risk owners which has produced information on identification and assessment of its risk categories shown in the table below. The information provided includes measures of probability, impact on net income, and exiting control (low, medium, and high) for each risk categories. You are hired to use a methodology to prioritize the identified risks, develop a risk map, and offer risk mitigation strategies only for the top three risks identified (i.e., not the entire list of risks).

Risk Category

Probability

Impact

Control

Geopolitical: government stability/regulation changes

46.25%

-46.24%

L

Legal: product recall/lawsuits

27.50%

-38.760%

L

Financial: low credit ratings/profitability

38.75%

-36.33%

L-M

Cyber Security: data breaches/system failure

33.13%

-64.98%

M

Innovation: competitive mkt position/R&D

33.13%

-48.23%

M

Credit: customer attrition/discount strategy

25.63%

-49.16%

L-M

Operational: supply chain/equipment failure

36.88%

-52.14%

M

Market: interest and exchange rate volatility

57.50%

-38.74%

L

Regulatory: compliance to healthcare regulation

39.38%

-51.44%

L

Climate: carbon tax/consumer expectation

41.89%

-38.58%

L

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