Think of a real or made up but realistic example of a speculative risk that you or someone you know may face, and then answer the
questions below.
(a) Describe the specific risk. (1-3 sentences)
(b) What sort of negative outcomes are possible for this type
of risk? (1-3 sentences. 0.5 points)
(c) What sorts of positive outcomes are possible for this type
of risk? (1-3 sentences. 0.5 points)
(d) Would this risk be likely to create unexpected expenses?
Why or why not? (1-3 sentences. 1.0 points)
(e) Describe at least one way you could protect yourself
against this risk. (1-3 sentences. 1.0 points)

You receive a memo from the vice president of procurement responding to your query. he writes: “it will be very important to maintain product continuity. we have a large base of devoted customers. we want to make sure that the quality and key characteristics of island knight stay the same through this transition. talk to frank, our consulting professional perfumer, for more information about the cologne. seasonal variations in costs are the single most significant factor in our deciding to go with another supplier, so finding a way to limit that should be the top priority. the overall marginal costs and shipping costs are probably somewhat less significant. you may want to talk to cindy, the product manager for island knight, regarding pricing information about the product.” what is the best action to take next?