1. downside of risk -- risk being associated with a negative outcome (ex. ensuring an old, beat up car)
2. magnitude of possible losses compared to its probabilities -- at least one possible outcome of an uncertain situation having a bad outcome (ex. buying a tv)
3. distinction between risk taking and gambling -- risk taking is associated with using skills, judgement, and control, which gambling is not
4. risk as a multi-faceted construct -- risk cannot be captured with a single number, since multiple facets such as financial, technical, marketing, production, and other risk aspects exist (things can go wrong in a lot of ways, over-worrying about one could be bad)
1. design -- Ability to complete the design, follow design for manufacturing goals, validate the design, assess the materials interactions, and manufacture the item. This refers to both company and supplier design as well as statements for work for service to outsourcing suppliers.
2. quality -- The direct and indirect materials, service, or product consistently meets requirements, and supporting processes are in place to ensure control.
3. cost -- Determined by target costs from the customer, industry benchmarking, should-cost models, and make-or-buy decisions where appropriate.
4. availability -- Assessing the risk of the sourcing, unit volume requirements, and the material tooling (where applicable).
5. manufacturability -- Risk associated with manufacturing's ability to produce when material specifications are met. If the material has not yet been received, this may entail anticipating potential future problems, such as materials that meet specifications but do not meet design for manufacturing goals.
6. supplier -- Assessing and choosing suppliers of good financial health and manufacturing in politically stable or low-risk natural disaster areas. It also refers to instances when Semi becomes too large a percentage of a supplier's business, either through capacity or corporate revenue.
7. legal -- Risk associated with the substantive legal status of the material, product, or service, such as import/export restrictions and tax issues. Additional risk factors include legally enforceable restrictions or commitments relating to the use of the material, product, or service.
8. environmental, health and safety -- Issues such as the handling and use of hazardous materials and compliance with EPA, OSHA, and other governmental agency policies by suppliers as well as this firm.