Hi Tutor,

I need some guidance for Q1. Please kindly provide detailed steps and explanation. Thank you very much.

Q1. East Town Ltd is planning to set up a number of web servers. You are the service delivery manager of the centre which hosts the servers. The centre is expected to be running 24x7.

Five risk events have been identified and Table 1 shows the probability of each risk event happening and the corresponding business losses:

Table 1

Risk Event Description	Probability of Risk Event Happening	Loss of Revenue Per Day	Days for Recovery	EMV
Power failure that affects all servers	0.1%	$200,000	0.5
Cluster of related servers breakdown	0.3%	$50,000	2.0
Data communication equipment breakdown	2.0%	$20,000	1
Electrical Fire	0.005%	$300,000	5
Cyber Security Threat - Denial of Service	0.5%	$80,000	0.5

1a) Calculate the Expected Monetary Value (EMV) for each risk event.

1b) Which risk event is the MOST important event that you want to manage?Justify your answer.

Identify a risk response strategy to manage the risk that you have identified in (1a). and describe one specific action you can use to carry out your strategy.