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Using Net Benefit to Evaluate Risk Response Alternatives Kalani's Fish Taco Hut is a small start-up restaurant in Hanalei. Kalani recently completed an online risk
Using Net Benefit to Evaluate Risk Response Alternatives Kalani's Fish Taco Hut is a small start-up restaurant in Hanalei. Kalani recently completed an online risk management course and has identified food safety as his restaurant's top risk. Specifically, he is concerned that the potential of spoiled food resulting from inadequate refrigeration and food preparation techniques could drastically increase restaurant costs. The chart below contains a description of this top risk, an inherent risk assessment, three risk response alternatives, and a residual risk assessment for each response alternative.. t or implementing risk response A is $600,000, and the cost of implementing risk response B is $150,000. nk or enter " 0 ". A. B. C. 4. Calculate the net benefit for Kalani associated with each of the three risk response alternative A. B. c. 5. Using net benefit as the criterion, which risk response should Kalani choose to implement? If an amount is zero, leave it blank or enter " 0 ". 1. Calculate the inherent risk for Kalani. 2. Calculate the residual risk for Kalani associated with each of the three risk response alternatives A, B, and A. B. $ C. \$ 3. Calculate the benefit for Kalani associated with each of the three risk response alternatives A, B, and C. A. $ B. \$ C. \$ 4. Calculate the net benefit for Kalani associated with each of the three risk response alternatives A, B, and C. A. \$ B. \$ C. \$
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