Risk Analysis


Beam On’s expansion project runs a small risk of impacting their contracts with the United States government for both telecommunications services and launch operations services. This risk is widely regarded as low with a 10% likelihood of impacting the business, but it must be accounted for. The worry is that pending administrative changes in the US government, the majority party may choose to withdraw contracts from organizations that provide satellite and launch services that support a foreign power.


US Government Response Likelihood Expected Return Expected Value  
Withdraw Standing Contracts 0.1 -350,000,000 -35,000,000
Maintain Standing Contracts 0.9 150,000,000 135,000,000
Expected Monetary Value 100,000,000


          Beam On’s expansion is moving forward due to the low likelihood of losing their US based contracts. Even with a higher likelihood, Beam On would continue expansion of their internet service even at financial loss in order to promote the company mission. While government contracts allow for a significant boost in revenue, the risk of financial ruin is worth accomplishing the mission of providing communication tools and the value of the internet to users across the globe regardless of where they live. Beam On’s senior leadership truly believes in the company mission and will continue to do whatever necessary to promote the expansion of that mission.

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