Question: Based on the tables given below, answer the questions that follow. Risk Probable Impact (in $ Million) Probable Velocity Non-Financial Impact Risk 1: Data hacking,

Based on the tables given below, answer the questions that follow.

Risk Probable Impact (in $ Million) Probable Velocity

Non-Financial Impact

Risk 1: Data hacking, which could lead to a breach and loss of data

1.7 to 1.9 million

High

Loss of data security

Risk 2: Use of old technology saws, which leads to 15% raw material wastage 3.1 to 3.4 million Low Probable loss of employee branding
Risk 3: Pandemic induced market depression, which could lead to reduced sales 4.5 to 4.7 million Medium Loss in motivation for the sales team

Risk 4: New regulations on working shifts that could lead to shutting down of night shift working in factories

2.4 to 2.6 million High Lay-offs of night shift workers
Risk 5: End customers preferring biodegradable plastic packaging, which might impact the current product line 0.6 to 0.8 million Low No growth in brand value
Impact Scale Probable Impact (in $ Million)
1 0-0.9 million
2 1.0-1.9 million
3 2.0-2.9 million
4 3.0-3.9 million
5 4.0 million and above

Question :Suppose Stora Ensos risk tolerance for each of the risks mentioned in the table is $3 million (the amount that it is willing to lose in the event the project does not work out). What risks would you suggest Stora Enso should take?

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