Professional Documents
Culture Documents
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Number of
Cost per Total annual Probability of Annual
Risk area Potential risk annual Weighted cost Mitigating strategies & controls Cost/benefit Decision summary Owner
incident cost occurrence control cost
incidents
Competitive Contoso, Ltd. might introduce a superior 1.00 $1,850,000 $1,850,000 75.0% $1,387,500 Reduce price by 25% on May 31 to keep the $1,150,000 $237,500 Monitor competitor progress and Kirk
offering on June 30 to compete with our volume stable. implement new strategy if required. DeGrasse
#1 product line.
$0 $0 $0
Economic/political $0 $0 $0
$0 $0 $0
Regulatory/legal Need to meet Sarbanes-Oxley 404 1.00 $15,000,000 $15,000,000 5.0% $750,000 Establish SOX Compliance Office on January $1,200,000 ($450,000) Despite negative cost/benefit, proceed Kim Ralls
(SOX) compliance requirements by 15 to ensure compliance 30 days before with SOX compliance because of the
target date. required date. company's high visibility.
$0 $0 $0
$0 $0 $0
Technological Potential exists for hackers to 5.00 $4,000,000 $20,000,000 10.0% $2,000,000 Upgrade firewall to latest version; install $750,000 $1,250,000 Continue to monitor technology to ensure Carol Philips
compromise internal network and obtain proxy server in Q2. that our company's and our clients'
confidential customer or employee information is protected. Intrusion would
information. have an enormous effect.
$0 $0 $0
$0 $0 $0
Operational If a key parts supplier in Eastern Asia 1.00 $1,250,000 $1,250,000 75.0% $937,500 Partner with alternate suppliers to reduce $937,500 $0 Begin negotiating terms with other key Michiko
suddenly goes out of business, it will risk reliance on dominant supplier. suppliers; take care not to lock into Osada
25% of production. minimum volume agreements.
$0 $0 $0
$0 $0 $0
Financial $0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
$0 $0 $0
Materials breakdown
% Contribution Amount
At-risk supplier 25% $500,000
All other suppliers 75% 1,500,000
Total materials costs $2,000,000