Using Net Benefit to Evaluate Risk Response Alternatives

Alejandro's Moab Grill features authentic Mexican dishes delivered in a relaxing Western motif, Given the short summer tourist season, Alejandro $($the owner$)$ decided to identify his top risk. Alejandro is most concerned that his restaurant will go relatively unnoticed by tourists as the number of other local competing restaurants continues to increase. As a result, he worries about the risk that the restaurant attracts fewer diners, thereby causing a decrease in sales revenue. The chart below contains a description of this top risk, an inherent risk assessment, three risk response alternatives $($A through C$),$ and a residual risk assessment for each response alternative.

$\backslash$table$[[$Risk$,$Inhe,Risk,,Resi,l Risk$],[,,\backslash$table$[[$Impact$],[($On Lost$]],,,\backslash$table$[[$Impact$],[($On Lost$]]],[,$Likelihood,Revenues$),$Risk Response Alternatives,Likelihood,Revenues$)],[\backslash$table$[[$Fewer tourists$],[$choose to dine$]],,,\backslash$table$[[$A$-$Switch the advertising campaign to$],[$more directly target tourists.$]],40\%,$$$2,000,000$