Product Risk:
A type of mortgage pipeline risk that occurs when a lender has an unusual loan in production or inventory but does not have a sale commitment at a prearranged price. Production is the process of combining various material and immaterial inputs to create an output for consumption or use. The output is a good or service which has value and garners demand. In the production lines of automobiles, the resources needed include raw materials such as steel and glass, machinery and human labour. Any error or mistake incurred during the production line is considered production risk. China is the leading producer for automobiles and is an important production country for Volkswagen due to its cheap labour and raw materials.
Short-term fluctuations in consumer demand for specific equipment features of their products and the decreasing predictability of those fluctuations may lead to supply bottlenecks. If forecasts are too optimistic, there is a risk that there will be inventory leftover. If forecasts are too pessimistic, they pose a risk of under capacity, as a result of which it may not be possible to meet customer demand. There is a possibility that vehicle deliveries may be delayed. In the case of large project, risk may result in contract drafting errors, mis-costing, post-contract changes in economic and technical conditions, weaknesses in …show more content…
Bowtie analysis will greatly assist the company to model and respond to certain risk events by understanding the Threats and Consequences. Thereafter, the company will be advised on potential threat controls to minimise the likelihood of threat happening, as well as to mitigate and minimise the consequence through the use of recovery measures. The Bow-tie Models that are found in Appendixes. Appendix A.5 on: Negative Impact on Stakeholders and Company will be covered below for better clarity due to its diversity of
A type of mortgage pipeline risk that occurs when a lender has an unusual loan in production or inventory but does not have a sale commitment at a prearranged price. Production is the process of combining various material and immaterial inputs to create an output for consumption or use. The output is a good or service which has value and garners demand. In the production lines of automobiles, the resources needed include raw materials such as steel and glass, machinery and human labour. Any error or mistake incurred during the production line is considered production risk. China is the leading producer for automobiles and is an important production country for Volkswagen due to its cheap labour and raw materials.
Short-term fluctuations in consumer demand for specific equipment features of their products and the decreasing predictability of those fluctuations may lead to supply bottlenecks. If forecasts are too optimistic, there is a risk that there will be inventory leftover. If forecasts are too pessimistic, they pose a risk of under capacity, as a result of which it may not be possible to meet customer demand. There is a possibility that vehicle deliveries may be delayed. In the case of large project, risk may result in contract drafting errors, mis-costing, post-contract changes in economic and technical conditions, weaknesses in …show more content…
Bowtie analysis will greatly assist the company to model and respond to certain risk events by understanding the Threats and Consequences. Thereafter, the company will be advised on potential threat controls to minimise the likelihood of threat happening, as well as to mitigate and minimise the consequence through the use of recovery measures. The Bow-tie Models that are found in Appendixes. Appendix A.5 on: Negative Impact on Stakeholders and Company will be covered below for better clarity due to its diversity of