Question4.1 LLV’s personal carers are concerned that defective codes in LagoCare may cause the system to generate incorrect medical treatment plans for their residents.According to Simon’s strategic risk framework, the personal carers are concerned with which type of strategic risks? Competitive risk Asset impairment risk Contractual risk Transition risk Operations risk ResetMaximum marks: 1 Flag question undefined

Question

BlackTom AI · Accepted Answer

First, let's restate the question and options to ground our analysis:
Question: LLV’s personal carers are concerned that defective codes in LagoCare may cause the system to generate incorrect medical treatment plans for their residents. According to Simon’s strategic risk framework, the personal carers are concerned with which type of strategic risks?
Answer options:
- Competitive risk
- Asset impairment risk
- Contractual risk
- Transition risk
- Operations risk

Now, evaluate each option in turn.
Option 1: Competitive risk. This term relates to threats arising from competitors, market positioning, or lost relative standing in the market. The scenario focuses on internal defects in a care system leading to potentially erroneous treatment plans, not on competition or market dynamics. Therefore, competitive risk misses the core issue.
Option 2: Asset impairment risk. Asset impairment refers to declines in the recoverable value of assets, often due to damage or obsolescence. While defective software could affect asset value, the scenario emphasizes operational failures in care delivery and decision support, not an explicit impairment assessment of physical or financial assets. So this is not the best fit.
Option 3: Contractual risk. This involves risks arising from contracts, such as breach, non-performance by a partner, or unfavorable terms. The LagoCare defect problem is not described as a contractual issue, but rather an internal risk to patient safety and care operations, so this option is unlikely.
Option 4: Transition risk. Transition risk typically concerns changes in strategy, regulatory regimes, technology adoption, or market structure. The specific defect causing incorrect treatment plans is not about transitioning between states or adapting to a new framework; it is about the ongoing operation of the system, making this option less appropriate.
Option 5: Operations risk. Operational risk covers failures in internal processes, people, and systems that can lead to errors or losses. Defective codes in LagoCare causing incorrect medical treatment plans directly point to a flaw in the system and its processes, impacting resident safety and care quality. This aligns with the definition of operations risk within many strategic risk frameworks.

In summary, among the listed categories, the situation is most consistent with an operations risk, since the core concern is a defect in the care system’s operation that could produce wrong treatment plans. The other options describe different risk areas (competition, asset value, contracts, or transitions) that do not directly capture the described internal process risk.

View Explanation

Log in for full answers

Similar Questions

Technological failure, employee fraud and employee errors are all sources of operational risk.

Question at position 22 Operational Risks include vendors raising prices, sharing intellectual property, and unstable political environments.Operational Risks include vendors raising prices, sharing intellectual property, and unstable political environments.TrueFalse

Which of the following is an example of operational risk?

The process that has the highest Operational Risk is typically

Companies that use metrics to measure process quality and can codify the work is indicative of a critical process whose operational risk in outsourcing is __________.

Linear processes are poses less operational risk than processes where work flows back and forth between workers and therefore is easy to offshore.

Operational risk refers to risk that processes will not operate smoothly after being offshored or outsourced.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler