discussion post can i get a reply to this

Risks is something that will be present in every managerial decision, but not all risks have a negative impact. If the risk has a large negative impact on the corporation, the best strategy is to avoid it at all cost but if the risk does not represent any long term damage, they should be accepted and embraced. To give some examples, let's compare the purchase of two different new equipment for a company. Equipment A has a significantly larger cost and minimal training is provided by the seller. Equipment B has a more reasonable cost and the seller provides training on it to ensure proper use of it. In terms of production, equipment A supersedes equipment B based on it capabilities and potential. In this case, the risks are mainly based on budget management. Equipment A has a higher probability of going over-budget when compared to equipment B. It also presents risks on reaching the necessary usage knowledge since it requires additional time to train the personnel. Of course there are more factor to be taken into consideration before making a decision, like M/O costs, life expectancy on the equipment and a comparison of expected revenue after n years. The question here is: which one to choose? Which risk is the company willing to take in order to acquire new equipment? Is the bigger risk worth it in the long term if equipment A is chosen? Or are they willing to play it safe and potentially lose greater rewards on the long run by choosing equipment B? To answer this questions, a deeper risk analysis must be done to understand the certainties and uncertainties of this purchase. What values are known and what values will only be known after the decision is taken. Reference