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homework7
12-8.
a. using the Figure 12-11 information, develop a risk assessment for the Espy Company.
These are the risk assessment in the order of probability from high to low:
Followed by Vandalism: 0.65; Brownout: 0.40; Power surge: 0.40; Flood: 0.15; Fire: 0.10; Software failure: 0.10; Equipment failure:0.08. Embezzlement:0. 05.
Based on the probability,

Estimated loss situation range
Control cost
In order to prevent that (Solutions):
Vandalism
1,000-15,000
8,000
1. Give limited people to access the data. (set up authorizations.) Make sure only people who needs what information and who have rights to edit what information.
2. Change the access code or passwords of employee periodically.
3. Manually monitor their own property. For example, creating form or setting up camera recording.
Brownout
850-2000
250
1. Keep in a proper place.
2. Prepare back up incase.
Power surge
850-2000
300
1. Have proper power cord.
2. Keep in a proper place.
Flood
250,000-500000
2500

1. Whenever talk about nature disaster, the first come to mind is insurance.
2. Launch equipment and inventory on a floor up, incase water to reach.
3. Back up data in other place in order to keep documentation alive.
Fire
150,000-300,000
4000
1.Whenever talk about nature disaster, the first come to mind is insurance.
2.Launch emergency early warning mechanism.
3.Back up data in other place in order to keep documentation alive.
Software failure
4,000-18000
1,400
1. Monitor whole processes and check which software does not work well. Contact the software company to see if they can fix the problem. If they could not, exchange the software.
2. Data need to be back up in order to avoid to loss documentation together.
Equipment failure
50,000-150,000
2,000
1. Keep eye on your equipment and estimate the deprecation year. Replace the equipment as soon as possible , decrease the cost.
2. Make sure workers use it in a right way. Provide training if necessary.
Embezzlement
3,000-9,000
1,000
1. Separeate the work

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