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Objective Risks Impact (HML) (3) (2) (1) : Buying Mangoes For Favorite Uncle

The document provides a group exercise on evaluating risks associated with buying mangoes for a favorite uncle. It identifies 5 potential risks: overpriced goods, perished goods due to long travel time, substandard goods, wasted time haggling, and lost goods in transit. For each risk, it rates the impact and likelihood, and calculates a risk score. Most risks fall in the high risk category. The risks can be treated by getting price information before haggling, using a fast delivery courier, and getting advice from a local expert on the best place to purchase mangoes.

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Janysse Calderon
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40 views

Objective Risks Impact (HML) (3) (2) (1) : Buying Mangoes For Favorite Uncle

The document provides a group exercise on evaluating risks associated with buying mangoes for a favorite uncle. It identifies 5 potential risks: overpriced goods, perished goods due to long travel time, substandard goods, wasted time haggling, and lost goods in transit. For each risk, it rates the impact and likelihood, and calculates a risk score. Most risks fall in the high risk category. The risks can be treated by getting price information before haggling, using a fast delivery courier, and getting advice from a local expert on the best place to purchase mangoes.

Uploaded by

Janysse Calderon
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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GROUP EXERCISE

Impact (HML)
Objective Risks
(3) (2) (1)
Buying mangoes for favorite uncle
Likelihood (RPP) Score
Rating
(3) (2) (1) (I x L)
0
0
0
0
Risk Response
Risk Rating Scale

Medium High High


High (3)
Low 3 6 High 9
Impact

Medium (2)
Low 2 Medium
Low 4 6
Low (1) 1 2 Medium 3

Remote (1) Possible (2) Probable (3)

Likelihood
Guidance of Evaluating Acceptability of Risk

Risk Score Risk Rating Acceptability of Risk


<3 Low Risk Acceptable
3-4 Medium Risk Moderately acceptable
>4 High Risk No acceptable
GROUP EXERCISE

Objective Risks Rating

Buying mangoes for favorite uncle (R1)Overpriced Purchased Goods 3


(R2)Perished Goods due to long travel time 3
(R3)'Substandard Purchased Goods 3
(R4)Wasted time in haggle 1
(R5) Lost goods in transit 3
Impact Likelihood

Explanation Rating

Financial loss due to purchased of overpriced goods 2


Wasted Purchase 1
Wasted Purchase 3
Loss is an opportunity cost 2
Wasted Purchase 2

HEAT MAP
High (3)
Impact

Medium (2)
Low (1)
Likelihood
Score
Explanation Rating
(I x L)
Most Sellers overprice goods for tourist 6 High
Unriped or not yet due to be perished mangos can be picked. 3 Medium
Buyer not an expert 9 High
Many alternative 2 Low
Depending on priority 6 High
26

If we are going to plot on the heat map, majority of the risks on buying mangoes for your favorite uncle will fall on the red
One Risk Two Risks One Risk

Two RIsks
Remote (1) Possible (2) Probable (3)
Likelihood
Risk Response Control

Treat Corrective - Get an idea of usual price range and then haggle
Accept Directive - Find the fastest and efficient delivery courier
Avoid Preventive - Need outside expertise from a local person
Accept Preventive- Ask locals where to buy the cheapest product
Avoid Preventive- Ask locals where to buy the cheapest product

orite uncle will fall on the red zone.

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