Flowers, Inc. will need to develop an appropriate risk response to each of these risks, in order to reduce the possibility of damage to the business. Risk 1: Damage to the call centers of the cost isIf a natural disaster hits one of the call centers and causes damage, it could have major consequences for the business. Unfortunately, natural disasters happen often and there is no way to prevent them. This is why Flowers, Inc. must have a plan to mitigate the damage it can cause to the business. This risk can impact two areas: physical assets and human assets. Physical assets, such as the call center building or the equipment it contains, can be damaged or destroyed by a hurricane. To reduce damage costs for the business, it should have an inspector come in regularly to ensure building codes and safety are up to par. This will reduce the chances of the building being damaged because it will allow any structural instability to be detected and corrected before a hurricane hits. Additionally, the company must carry insurance on all buildings and equipment, to reduce costs if they are damaged or destroyed. The human assets are call center employees. The company will need to help protect employees on duty when the hurricane hits. Employees should practice hurricane drills regularly, so they know where to go in the call center when it hits. Ideally, the call center will have a “safe room” located in the center of the building, with no windows. In addition to hurricane drills, all employees should have the opportunity to contact the company after the hurricane. This will allow furloughed employees to call and make sure they are safe. Risk #2: Loss of a florist There is a chance that... middle of paper... the business will remain in business in the event of a shortage. Additionally, the company should consider strengthening its social responsibility and launching a water conservation campaign. This would be particularly useful for the call center in New Mexico, where they are governed by water conservation laws. Raising awareness of water issues will help conserve some of the water needed for flower growth. Works Cited Christy, J. (nd). Understanding and managing political risk. Retrieved from http://internationalinvest.about.com/od/globalmarkets101/a/countryresearch.htmHilton, R. (2011). Management Accounting: Creating Value in a Dynamic Business Environment (9th ed.). Incidents at the McGraw-Hill Nuclear Power Plant. (2007, March). Retrieved from http://www.redcross.org/images/pdfs/code/nuclear_power_plant.pdfOPIC Overview. (nd). Retrieved from http://www.opic.gov/insurance