As a project manager who is concerned about a risk, you realize that you have the three options shown below. The last four columns show the two possible outcomes in each case with their associated probabilities and impacts. For example, the Do Nothing option costs $0, has a 80% likelihood of a $13,000 impact (meaning you LOSE $13,000, hence the loss in red parentheses) and a 20% likelihood of a $7,000 impact.

Showing all your calculations, explain very clearly which of the three options would be the best (where "best" is equated with the least loss or greatest gain).

	Risk Response	Cost	Prob	Impact	Prob	Impact
Option 1	Do nothing	$0	80%	($13,000)	20%	($7,000)
Option 2	Implement Response A	$5,000	30%	($5,000)	70%	($3,500)
Option 3	Implement Response B	$8,500	60%	($2,000)	40%	($3,000)