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After a company identifies potential risks, it must measure those risks. Epstein and Buhovac (2014, p. 185) identified a seven-stage process for measuring those risks. Calculate the benefit associated...

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After a company identifies potential risks, it must measure those risks. Epstein and Buhovac (2014, p. 185) identified a seven-stage process for measuring those risks.

  1. Calculate the benefit associated with each issue that may generate risk.
  2. Calculate the potential costs for each and include reputation risks.
  3. Estimate the probability that the risks will happen.
  4. Multiply the potential cost by its probability to determine the expected value of each risk.
  5. Estimate when the risk may happen and calculate NPV.
  6. Add the NPVs of all risks and add as a line item in ROI.
  7. Calculate expected value of ROI.

Consider a Saudi business and the risks it faces. Describe these and then address how the company might estimate the probability the risk will happen.

  • Embed course material concepts, principles and theories, which require supporting citations along withat least one scholarly peer reviewed reference in supporting your answer unless the assignment calls for more. Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references.
  • You need to reply to at least two peers’ discussion question post answers to this weekly discussion question. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peers’ replies but is expected throughout the course. Answering all course questions is also required.
  • Use Saudi Electronic University academic writing standards and APA style guidelines.

Be sure to support your statements with logic and argument, citing all sources referenced. Post your initial response early, and check back often to continue the discussion. Be sure to respond to your peers’ posts as well.

Answered Same Day Mar 05, 2021

Solution

Soumi answered on Mar 06 2021
126 Votes
Running Head: BUSINESS ETHICS        1
BUSINESS ETHICS                                         5
BUSINESS ETHICS

Table of Contents
Risk Faced by Almarai Company, as a Saudi Business Organization    3
Suggesting Methods for Identifying Probability of Risk    3
References    5
Risk Faced by Almarai Company, as a Saudi Business Organization
    Almarai Company was established in 1977 in Saudi Arabia and found instant success on a small-scale production in the country for the refined dairy products. The company realized the potential of the dairy products in the region and decided to expand its business in the Middle-East Countries. Almarai Company also gave the local farmers the ability to sell their cow milk directly to the company, making a significant increase in the production of the raw material. Considering the remarkable demand, Almarai Company was subjected to and the popularity it gained through its high quality cow milk, it soon introduced new dairy products and expanded rapidly. The company has registered an impressive Saudi Riyal 3.37 Billion in 2018 (Almarai, 2017).
    The remarkable growth rate and market position of Almarai Company is however, slowing considerably as the company is taking preventive measures of employee layoffs, reduced production and closure of retail outlets in several parts in the global market. Despite the negative feedback and their suitable measures, the company has agreed that it has been receiving...
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