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Analyzing Case Studies

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Submitted By scheek555
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Luxor Technologies

1. Can the impact of one specific risk event, such as a technical risk event, create additional risks, which may or may not be technical risks? Can risk events be interrelated?

The technical risks categorized in Exhibit I related with scientific research requirements and state-of-the-art advancements are a potential risk to other areas of the firm’s processes. If those risks are not adopted, Luxor’s manufactured products will not meet the marketing requirements. All risks that accompany the improvements, whether they may be “linked” to technological or developmental “breakthroughs” can determine Luxor’s outcome.

2. Does the list provided by marketing demonstrate the likelihood of a risk event or the impact of a risk event?

The list prepared and provided by marketing demonstrates the potential impact Luxor will bear if they misplace their competitive edge; thus concluding a serious threat to Luxor’s growth and even survival, by way of, being required to provide outside vendors with proprietary information.

3. How does one assign probabilities to the marketing list?

The marketing list of separate entities presented to management is simply a scenario analysis. In order words, no qualitative analysis was applied, the list stems from one potential risk, such as the fear of no longer being the leading technology-driven company.

4. The seven items in the list provided by engineering are all ways of mitigating certain risk events. If the company follows these suggestions, is it adopting a risk response mode of avoidance, assumption, reduction, or deflection?

The consultant stated that the risk can neither be avoided nor deflected, the seven items in the list provided by engineering is considered a risk response mode of reduction. They suggest options and actions to enhance Luxor’s opportunity to maintain its technical

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