1. Danny R. Taylor MGMT 505 Sept 23, 2011

2.  The Situation  Factors  Possible Solutions  Worst Case  Best Case  Risk Assessment

3.  Southard Trucking Purchase of Faulty Equip ◦ Owner Bill Southard purchased 12 new tractors  Tractors, also known as Trucks or Rigs, are used to pull large trailers over the road.  Equip purchased from ARC trucks, who is not accepting any responsibility  Drivers will not operate new tractors due to the “wandering” while running down the road.

4.  Tractors not in operation  Payments related to new equipment  ARC Truck made steering upgrades after Southard purchased his 12 tractors, but stick to the fact the upgrade had nothing to do with Southard’s claim of steering issues.  Need to get new Tractors back on the road making money

5.  Seek legal action against ACE Trucks until they agree to make necessary repairs ◦ Could cost Southard thousands in legal fees with no guarantee of a repair in the end  Seek out a repair to the steering (wandering) issue ◦ After-market steering assist systems are available on the market; would increase initial investment, but gets tractors moving again quickly

6.  Southard truck Lines pushes legal action against ARC trucks  Mr. Southard decided not to add the aftermarket steering system to new tractors

7.  Mr. Southard installs Howard Power Center Steering System to new tractors  Tractors are back on the road

8. Risk EventLikelihoodImpactDetection DifficultyWhen Loosing More Drivers441Before Repairs Tractor Accident241Before Repairs Repair Does Not Work141Post Repair New Tractors Sit Longer222Anytime Likelihood ScaleImpact Scale Detection Difficulty Scale 1 = Highly Unlikely1= No Impact1= Easy Detection 2 = Unlikely2 = Minimal Impact2 = Average Detection 3 = Moderately Likely3 = Average Impact3 = Difficult Detection 4 = Highly Likely4 = Significant Impact4 = Undetectable

9. Risk EventResponseContingency PlanTriggerPoint of Contact Loosing More Drivers Start Initative To Keep Drivers Advertise/Look For New DriversTractor WanderingJoe Tractor Wreck Install Aftermarket Steering Assistance Mod Possible Law Suit Against ARC Trucks Tractor Wandering/Driver FatigueBill Repair Does Not Work Trade Trucks In At Different Dealer Possible Law Suit Against ARC Trucks Tractors Still Wander After Install of ModJan New Tractors Sit Longer Look For Fix To Wandering Issue Trade Trucks In At Different Dealer Drivers Choose Old Tractors Instead of New OnesJill

10.  The Situation  Factors  Possible Solutions  Worst Case  Best Case  Risk Assessment