Business – 1.1 Enterprise – The role of entrepreneurs and intrapreneurs | e-Consult
1.1 Enterprise – The role of entrepreneurs and intrapreneurs (1 questions)
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Calculation of expected loss:
- Probability of strike = 0.10
- Loss if strike occurs = £200,000
- Expected loss = 0.10 × £200,000 = £20,000
Use in risk management:
- Incorporate the £20,000 expected loss into budgeting and financial forecasts.
- Consider purchasing strike insurance or setting aside a contingency fund.
- Develop negotiation strategies with employee representatives to reduce the probability of a strike.
- Monitor labour relations indicators to detect early warning signs and act proactively.