Saturday, October 24, 2020

Risk Avoidance

 At this point all decisions to be made are being done under uncertainty. In order to make the right decisions in this trying time the goal is to look at all options available, assess the risk factors, and determine the proper decisions. 

As the government has lifted restrictions to the Theme Parks which are currently running at 25% capacity, the company has the options to completely bring the parks back to 100% capacity and resume operations as they were prior to the pandemic. Should the theme parks cease operations until the virus is contained would result in zero revenue and more losses for the company. Should the company increase capacity and operations, revenue could increase, and employees could be hired back. If this decision is to be made, the risk of spreading the coronavirus is high and would result in a negative impact in the long term. Data would prove that the theme parks are not being as safe, can trace spreading back to the parks, which would eventually lead to customer trust being lost, a public relations negative perception, and eventually a higher loss in revenue. Should the parks stay at 25% capacity, with safety protocols in place, increase in profit is not likely but the brand loyalty and trust will remain and in turn could bring a higher profit in the near future. 


At this point, although the risk of opening up the parks for higher profits is not recommended as the long-term damage would be much more destructive to the company than remaining at its lower capacity. 




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