4. You have completed an enterprise risk management (ERM) First-Filter risk assessment identifying 85 risks across the corporation. The Chief Risk Officer (CRO) requested three Second-Filter ROI analyses including: (1) Manufacturing Contamination Risk; (2) Geopolitical Risk; and, (3) Cyber Security Risk. You have performed the three Second-Filter analyses yielding the following table of results.

a) Sketch the Investment Productivity Curve (including the numerical values on the axes).

b) What recommendations do you provide the CRO regarding which risks to pursue with mitigation investments and the overall risk mitigation budget?

Risk Expected NPV Before Invest ($M) Expected Gain ($M) Investment Investment (SM) Productivity Expected NPV After Invest - including Cost of Invest ($M) (30.79) (131.00) (23.50) 35.40 Manufacturing Contamination Geopolitical Cyber Security (75.27) (214.04) (170.90) 44.48 83.04 147.40 5.80 3.70 1.28 14.75 41.36 Risk Expected NPV Before Invest ($M) Expected Gain ($M) Investment Investment (SM) Productivity Expected NPV After Invest - including Cost of Invest ($M) (30.79) (131.00) (23.50) 35.40 Manufacturing Contamination Geopolitical Cyber Security (75.27) (214.04) (170.90) 44.48 83.04 147.40 5.80 3.70 1.28 14.75 41.36