Mr. Green Tea’s new manufacturing facility is now operating…
Mr. Green Tea’s new manufacturing facility is now operating at full capacity. A critical piece of equipment used in the operation is the massive walk-in freezer. There is only one walk-in freezer in the production facility: which is used to store all of Mr. Green Tea’s finished ice cream inventory. The walk-in freezer faces the risk of the compressor failing or other mechanical issues; which in turn, would cause the freezer to lose its cold temperature. If this would occur, Mr. Green Tea would have to halt all production of ice cream as it would have nowhere to store its finished product. Additionally, it would have to relocate all of its finished product to another refrigerated facility very fast; or it would melt / be destroyed. The risk of loss to this critical piece of machinery for Mr. Green Tea would fall under which quadrant of risk?