Could You Please Find the solution for these two questions
Supply risk for valves
- DynoRam makes hydraulic rams for the mining industry in Australia. It obtains a valve component from a supplier called Sytoc in Singapore. The valves cost 250 Singapore dollars each and the company uses betweeen 450 and 500 of these each year. There are minor differences between calbes with a total of 25 different types being used by DynoRamn. Sytoc delivers the valves by air freight, typically about 48 hours after the order is placed. Deliveries take place up to 10 times a month depending on the production schedule at DynoRam. Because of the size of the order, Sytoc has agreed a low price on condition that a minimum of 30 valves are ordered each month. On the 10th of each month (or the next working day) DynoRam pays in advance for the minimum of 30 valves to be used during that month and also pays for any additional valves (above 30) used during the previous month.
- Give one example of market risk, credit risk, operational risk and business risk that could apply for DynoRam in Relation to the Sytoc arrangement
- For each of the risks identified in part (a) suggest a management action wich would have the effect either of reducing the Probability of the risk event or minimizing the adverse consequences
- a. Give one example of market risk, credit risk, operational risk and business risk that could apply for DynoRam in Relation to the Sytoc arrangement
- b. For each of the risks identified in part (a) suggest a management action wich would have the effect either of reducing the Probability of the risk event or minimizing the adverse consequences
Product form for heat map
- Suppose that the risk level is calculated as the expected loss and that the likelihood are converted into probabilities over a 20-year preiod as follows: 'very likely' = 0.9; 'likely' = 0.7; 'moderate; = 0.4; 'unlikely' = 0.2; and 'rare'= 0.1. Find a set of dollar losses associated with the five different magnitudes of impact such that the expected losses are ordered in the right way for figure 1.1: in other words, so that the expected losses for a risk level of low are always lower than the expected losses for a risk level of high. Which in turn are lower than the expected losses for a risk level of extreme You should set the lowest level of loss('insignificant') as $10000?