SENE ELL Co. recently recalled 6 million cars due to faulty third-party ignition switches that were linked to 13 deaths. For more than a decade, the company decided against a very inexpensive switch upgrade and continued to use the vendor's ignition switches even though they did not meet the company's performance specifications. A growing number of lawsuits ensued and company's stock sank due to heavy media attention, congressional inquiries, and a Department of Justice criminal investigation. The most significant risk management lesson to date from the company recall is: Reliance upon third-party vendors results in unacceptable levels of residual risk. An organization that ignores or mistreats its external stakeholders does so at its own peril. The Company failed to develop an ethical organizational culture that guided its strategic planning and daily operations. Cost-benefit analysis is an ineffcctive decision-making techniquc, as demonstrated in rejocting a 57-cent fix for the ignition switches. None of the choices