Question
You are the advisor of Howdy, a leading technology firm, manufacturing some of the most advanced graphics processing units (GPUs) for the artificial intelligence (AI),
You are the advisor of Howdy, a leading technology firm, manufacturing some of the most advanced graphics processing units (GPUs) for the artificial intelligence (AI), gaming, creative design, autonomous vehicles, and robotics industries. On the first week of work, you had to answer a broad range of questions on risk management.
Mrs. Brown, the Chief Operations Officer, has asked you to prioritise five (5) different risks:
Questions: (i) A highly predictable fall in crypto demand, which is less than 2% of Howdys business. (ii) A remote environmental law proposal to ban Howdy new GPU for the huge AI market. (iii) A potential supply chain issue, which could delay Howdys sales of robotic vehicles chips by three months. Automotive is an average contributor to its profit. (iv) The imminent merger of Howdys two closest competitors, which would enable them to compete at cut-throat prices on the firms entire product range. (v) The improbable decline in sales of gaming computers chips after COVID, which may hit Howdys sales to some extent. (a) Appraise those five (5) different risks by plotting them on a risk matrix.
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