Chapter 6 Exercise 4 Quality Tea, a large flower tea producer, has the following risk policies: Likelihood Threshold Pain Point Soft Limit Hard Limit 18% Decrease in company value of 20% or more 25% In addition, the optimal range of enterprise risk exposure is 80%-100% of the soft limit. Assume that the current risk exposure is as shown below. Enterprise Risk Exposure Risk Appetite } A Hard Limit Soft Limit } B } C 80% of Soft Limit } D In the table below, rank in decreasing order QualityTea's preference for the enterprise risk exposure levels, A, B, C, and D. Preference Order #1 #2 #3 #4 Enterprise Risk Exposure Level 49 Chapter 6 Exercise 4 Quality Tea, a large flower tea producer, has the following risk policies: Likelihood Threshold Pain Point Soft Limit Hard Limit 18% Decrease in company value of 20% or more 25% In addition, the optimal range of enterprise risk exposure is 80%-100% of the soft limit. Assume that the current risk exposure is as shown below. Enterprise Risk Exposure Risk Appetite } A Hard Limit Soft Limit } B } C 80% of Soft Limit } D In the table below, rank in decreasing order QualityTea's preference for the enterprise risk exposure levels, A, B, C, and D. Preference Order #1 #2 #3 #4 Enterprise Risk Exposure Level 49