Since the recent global Covid-19 pandemic, finance managers of big manufacturing companies have realised the importance of risk management, and the tools used to minimise risk. Lankart International is a company that has suffered losses in the past due to implementing inappropriate risk management tools. Sam has just been appointed as a senior manager in the finance department of Lankart International, as he has the required qualifications and experience to manage risk in the organisation. He holds a team meeting with other managers in different departments in order to understand the risk preferences of the organisation so that appropriate tools can be implemented to reduce the risk of future losses. Assume you are Sam, and complete the following: Required: 1. Each firm and individual has different risk tolerance, and it keeps varying. In reference to varying risk tolerances, comprehensively review the key risk preferences of firms and executives. 2. Outline and infer, with the assistance of a diagram, the relationship between different risk categories.