Abacus, a local software development firm, is trying to win a major contract from a large academic institution for the creation of a new application and is concerned with four major threats:

• Use of immature technology: a small probability of only 0.3 with a negative impact of 4. The ability to lessen the impact of this threat is 3.
• Acquisition Potential (Abacus is currently being considered as an acquisition target by a much larger international firm): probability of loss is 0.5 but negative impact is only 3. The ability to lessen the impact of this threat is a value of 4.
• Competition: the probability of very competitive bids is high at 0.6, and the potential impact would be substantial at a value of 5 on a scale of 1 7 (where 7 is a major negative impact and a 1 is a slight). The ability to lessen the impact of this threat is a value of 1 (where 7 is a great ability and 1 is a slight ability).
• Economy: probability of a recession is 0.4 and its impact would be 7 since the company would probably decide not to follow through with the creation of the application. The ability to lessen the impact of this threat is a value of 6.

Use the FMEA technique to determine which risks are critical and which can be ignored