Categorize the following risks by source.
Event 1: Nineteenth Century Realty is the largest real estate agency in the greater metropolitan area. Each year, the top sales people and the company’s top leadership meet for a “President’s Council” retreat/celebration at a tropical location. During this year’s “President’s Council” celebration, an earthquake and resultant tsunami leveled the resort, resulting in mass casualties. Nineteenth Century Realty lost all of its top sales people and leadership except the CFO and the new “tiny house” Realtor who were off-site touring a potential production facility in the island nation. Sales volumes in the next year will be dramatically reduced, and the company will incur significant expenses to try and rebuild.
Event 2: ZippySauce is the maker of several sauces used by the famous restaurant chain MacGregor’s. For the past 20 years, ZippySauce has not widely distributed its products to other restaurants or other outlets other than a few local grocery stores to who ZippySauce supplies one small product line; MacGregor’s also used ZippySauce as its sole provider for its sauces and dressings. Unexpectedly, MacGregor’s just informed ZippySauce that at the end of the current contract term, they will discontinue purchasing anything from ZippySauce and will be making their own sauces in the MacGregor’s kitchens due to shifting consumer preference for “local” ingredients. ZippySauce immediately fired its relationship manager who supported the MacGregor’s contract.
Event 3: FunFinance about to go under. For 65 years, it has steadily grown based on a business of lending exclusively to the businesses run by members of the 5 most powerful families in the area. Last month, it was revealed that one of the families had been defrauded of all their wealth and is now bankrupt, with no remaining collateral. The outstanding loans from that one family represents more than all the bank capital.(The risk to be categorized is from FunFinance perspective.)
Event 4: GreatAnalytics is a direct marketing service used by large banks who are looking to market additional products and services to their customers. GreatAnalytics had been known to be a very secure and discrete partner for banks who have trusted them with a great deal of their customers’ data to use in generating these marketing programs. Unfortunately due to a disgruntled employee at GreatAnalytics, this customer data was breached and sold off on the ‘dark web’. GreatAnalytics quickly discovered the breach, firing the offending employee, but it did not contact its bank customers or the impacted consumers. Eventually the data breach was discovered by reporters, and several banks were caught up in the bad publicity. The vast majority of these banks have cancelled their contracts with GreatAnalytics.
Event 5: Two weeks ago, RonCo Energy, a highly-secretive alternative energy company revealed that it must restate its last two years worth of financial statements. The restated financials will have significantly reduced profits. Shareholder litigation plans were announced this morning. Regulators are investigating. Competitors are moving to attack RonCo’s partnering relationships. The Wall Street Journal has already had three front page articles revealing ever-increasingly embarrassing details of the fiasco, including sources at the SEC that report they have uncovered massive fraud by the CFO and CEO of RonCo.
Prime Essay Services , written from scratch, delivered on time, at affordable rates!