HI

Could You Please Find the solution for these two questions

Supply risk for valves

• DynoRammakeshydraulicramsfortheminingindustryinAustralia.ItobtainsavalvecomponentfromasuppliercalledSytocinSingapore.Thevalvescost250Singaporedollarseachandthecompanyusesbetweeen450and500oftheseeachyear.Thereareminordifferencesbetweencalbeswithatotalof25differenttypesbeingusedbyDynoRamn.Sytocdeliversthevalvesbyairfreight,typicallyabout48hoursaftertheorderisplaced.Deliveriestakeplaceupto10timesamonthdependingontheproductionscheduleatDynoRam.Becauseofthesizeoftheorder,Sytochasagreedalowpriceonconditionthataminimumof30valvesareorderedeachmonth.Onthe10thofeachmonth(orthenextworkingday)DynoRampaysinadvancefortheminimumof30valvestobeusedduringthatmonthandalsopaysforanyadditionalvalves(above30)usedduringthepreviousmonth.
• Give one example of market risk, credit risk, operational risk and business risk that could apply for DynoRam in Relation to the Sytoc arrangement
• For each of the risks identified in part (a) suggest a management action wich would have the effect either of reducing the Probability of the risk event or minimizing the adverse consequences
• a. Give one example of market risk, credit risk, operational risk and business risk that could apply for DynoRam in Relation to the Sytoc arrangement
• b.Foreachoftherisksidentifiedinpart(a)suggestamanagementactionwichwouldhavetheeffecteitherofreducingtheProbabilityoftheriskeventorminimizingtheadverseconsequences

Product form for heat map

• Suppose that the risk level is calculated as the expected loss and that the likelihood are converted into probabilities over a 20-year preiod as follows: very likely = 0.9; likely = 0.7; moderate; = 0.4; unlikely = 0.2; and rare= 0.1. Find a set of dollar losses associated with the five different magnitudes of impact such that the expected losses are ordered in the right way for figure 1.1: in other words, so that the expected losses for a risk level of low are always lower than the expected losses for a risk level of high. Which in turn are lower than the expected losses for a risk level of extreme You should set the lowest level of loss(insignificant) as $10000?