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Which risks should a food factory in Johor pay to reduce?
The prompt
A biscuit factory in Johor, Malaysia makes about MYR 15 million of profit a year. Its risk register is in the table with this case. Three actions are proposed: a second flour supplier (MYR 0.4 million a year extra), which would cut the impact of the main supplier failing from MYR 8 million to 2 million; a spare parts kit for the oven (MYR 0.15 million a year), which would halve the impact of a breakdown; and flood insurance (MYR 1.2 million a year), which would pay MYR 40 million of the MYR 50 million flood loss. Which should it take? (Fictional company, illustrative figures.)
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