One capital investment that State Insurance Company Limited might need to secure financing for in the coming fiscal year is the purchase of a new claims processing system. The estimated cost of the new system is $10 million, and the funds would be allocated as follows:

• Hardware: $5 million
• Software: $3 million
• Training: $2 million

The new claims processing system would be a significant investment, but it would also bring a number of benefits to the insurance company. These benefits include:

• Increased efficiency: The new system would be more efficient than the current system, which would lead to faster processing of claims and lower costs.
• Improved accuracy: The new system would be more accurate than the current system, which would reduce the number of errors and the amount of time spent on rework.
• Enhanced customer service: The new system would allow the insurance company to provide better customer service, which would lead to increased custom

Use scenario above to provide the following:

1a: Level of Risk

1. identifies three to five risks of engaging in the capital investment project for the insurance company .

b.give a thorough and detailed proposal of this project's level of risk.

1b: Managing Risks

Give a thorough and detailed explanation of how willing or capable they believe the organization is to take on and manage these risks.

1c: Trade-Offs Between Risks and Returns

provides a thorough and detailed summary of the trade-off between the risks and returns of going forward with this capital investment project, including their recommendation of whether the organization should move forward with the project or not.

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