R$1-$ Operational Risk

Description: Difficulty in implementing robots for production and other tasks such as integrating the IoT systems

Cause: Complexity of Technologies

Effect: Delay or interruption of production processes

Likelihood $=3-$Possible

Consequence $=3-$Moderate $($Quality & Technical Integrity$)$

Rating $=13$

R$2-$ Regulatory Risk

Description: Non$-$adherence to specific international legislation

Cause: Fluctuation in laws between different countries

Effect: Legal repercussions, temporary shutdowns and enhanced compliance expenses

Likelihood: $4-$Likely

Consequence :$4-$High $($Legal & Regulatory$)$

Rating $=21$

R$3-$ Economic Risk

Description: Negative impact on company$$s profitability

Cause: Fluctuations in currency exchange rate

Effect: Increased costs and lower the profit margins

Likelihood: $3-$Possible

Consequence: $3-$Moderate $($Cost$)$

Rating $=13$

R$4-$ Market Risk

Description: Slow market growth rate in new destinations

Cause: Unavailability of Skilled Labor and technical Expertise

Effect: Slower production rates and poor quality of products

Likelihood: $4-$Likely

Consequence: $3-$Moderate $($Cost$)$

Rating $=17$

R$5-$ Strategic$/$Partnership Risk

Descrtiption: Ineffective partnerships with local organizations

Cause: Differences that exist in cultures and communication systems

Effect: Negative impacts on business performance

Likelihood: $3-$Possible

Consequence: $3-$Moderate $($Cost$)$

Rating $=13$

$5\mathrm{.}1$ Using the risk register from above, calculate the $5$ possible Expected Monetary Values using the aggregation of the risk$-$driven occurrences methodology. $(5$ Marks$)$

$5\mathrm{.}2$ Describe the result of this methodology used in the question above using an appropriate diagram and summarize what this average impact value means for the organization. $(5$ Marks$)$

$5\mathrm{.}3$ Reflect on how this quantitative risk analysis by ABC Manufacturing Inc. could inform future decisionmaking and risk management strategies for the organization.