hw-7 - no or a reduced number of incidents of children...

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1. a. This article depicted a Hazard Risk because those who bought Bucky balls had their children swallowing them and causing severe injuries. There is also an Operational Risk, due to the danger of Bucky balls, safety commissions demanded the company to recall its products.
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b. To manage the risks mentioned above, Maxfield and Oberton’s target market were adults and had their packaging covered with safety warnings. c. The specific risk control option illustrated by the actions taken by Maxfield and Oberton is a loss reduction risk control. d. Since the company packaged their merchandise with safety warnings in order to minimize the severity of the loss, it is a pre loss reduction activity. The post-loss loss reduction activity is the demand to stop making Bucky balls and the issuance of the product recall. e. The actions taken will control the future losses because what happened in the past cannot be changed but after the company stops making these products, there will be
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Unformatted text preview: no or a reduced number of incidents of children swallowing the magnetic balls. 2. In the article Kmart Stores Hit by Data Breach, Kmart stores were breached by hackers. This is a Financial Risk. Sears is working with the secret services and private security firms in order to reduce the severity of losses. Sears also has set up a free credit monitoring for those who made purchases on their cards during the time the breach took place, therefore it is a post-loss loss reduction risk control. Sears was going through a crisis management which is when a business deals with an unexpected emergency situation. Citation ARMENTAL, M., & KAPNER, S. (2014, October 10). Kmart Stores Hit by Data Breach. Retrieved October 12, 2014, from ...
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