Question 3(10 marks)Case study: Risk cost minimisation at Greentech ManufacturingGreentech Manufacturing (GTM) is a mid-sized enterprise that specialises in eco-friendly electrical components. In recent years, GTM's management noticed an increase in unexpected costs arising from workplace incidents, asset damage and fluctuating customer satisfaction related to product quality.The Chief Risk Officer (CRO) was assigned to lead a new initiative aimed at controlling and reducing the costs associated with these risks. Upon review, the CRO identified that GTM's overall risk management approach lacked clearly defined objectives for minimising the financial and operational impacts of risks across the enterprise.To address this gap, the CRO began developing a structured risk management framework, centred on three overarching objectives designed to reduce the total cost-related impacts of risk effectively.The management team gathered the following quantitative data:2RSK4803/102/3/2025The ratio of the total cost of risk to overall revenue over the past five years, with attention to fluctuations and trendsAsset records, including depreciation, damage incidents and employee health and safety reportsCustomer feedback on product safety, quality concerns and service satisfactionManagement also considered the following constraints and strategic factors:The effect of budget limitations on the implementation of risk control and mitigation measuresThe need to maintain compliance with industry safety regulations affecting workforce operationsLong-term financial planning requirements linking risk expenditure with broader corporate financing objectivesThe importance of aligning risk financing decisions with broader investment strategies within the companyAcross departments, management noted that some units focused strongly on resource preservation, while others prioritised product safety and public image enhancement. However, these efforts were often fragmented and lacked integration with financial goals related to risk reduction.Question:Evaluate the risk minimisation objectives that GTM's management should adopt, considering the company's specific context and the factors highlighted. Explain the significance of each objective in supporting GTM's efforts to achieve a sustainable reduction in its cost of risk and to enhance operational effectiveness.