Classify and explain the following risks for Nestle according to its severity, likelihood of occurrence and detection.

The assignment, including possible diagrams, tables, references etc., should be arround 1,500-2,000 words.

1. Suppliers machine break down 2. Increase of import tariffs 3. Suppliers non compliance with CSR 4. New production methods in the market 5. Political instability in our suppliers market 6. Natural disasters e.g.. extreme flood or tsunami

Severity

1:no direct effect on operating service level

2: minor deterioration in operating service level

3: definite reduction in operating service level

4: serious deterioration in operating service level

5: operating service level approaches zero

Likelihood of occurrence

1: probability of once in many years

2: probability once in many operating months

3: probability once in some operating weeks

4: probability of weekly occurrence

5: probability of daily occurrence

Likelihood of detection

1: detectability is very high

2: considerable warning of failure before occurrence

3: some warning of failure before occurrence

4: serious deterioration in

5: detectability is effectively zero