IMPACT/CONSEQUENCE

5 4 3 2 1
LIKELIHOOD
Catastrophic Major Moderate Minor Insignificant
HEALTH AND
Almost Extreme SAFETY RISK High High Moderate
5
Certain (25) Extreme (15) (10) (5)
(20)
COMPLIANCE
AND FINANCIAL
REGULATORY RISK High Moderate Moderate
4 Likely
RISK High (12) (8) (4)
Extreme (16)
(20)
ENVIRONMENTAL REPUTATION
RISK RISK Moderate Moderate Low
3 Possible
High High (9) (6) (3)
(15) (12)

High Moderate Moderate Low Low

2 Unlikely
(10) (8) (6) (4) (2)

Moderate Moderate Low Low Low

1 Rare
(5) (4) (3) (2) (1)
 Compliance and Regulatory Risk

Risk Rating: Catastrophic

Likelihood: Likely

As is well known, tobacco is one of the products that has a significant negative impact on the health and safety of many individuals.
Tobacco consumption has decreased as a result of numerous restrictions and regulations being in place. Numerous tobacco campaigns have
been launched in an effort to persuade individuals to abstain from using tobacco. Due to the numerous harmful effects of tobacco, many
people support restrictions on, prohibitions against, or even outright bans on tobacco use. Many people are in favor of staying away from this
kind of product because it is not a necessity and may even be hazardous to one's health. Furthermore, the fact that academics are currently
doing a large number of studies on the impact of tobacco smoking and the persistence of tobacco advertising may present an opportunity to
entirely eliminate and outlaw tobacco advertising. And if that takes place, the amount of cigarette use could decline, which could mean less
money for the government.

 Environmental Risks

Risk Rating: Catastrophic

Likelihood: High

By not proceeding with the implementation of the ban in the advertising of tobacco, we failed to decrease or lessen the
contributors of various environmental problems such as pollution on soil, water and air.

Every phase in tobacco cycle have a huge environmental impact starting from growing tobacco. Growing tobacco degrades soil,
threaten biodiversity, and uses pesticides and fertilizers exposing farm workers to hazardous chemicals. Cutting them would lead to
deforestation and the manufacturing process produces different types of harms such as hazardous chemical waste and greenhouse gases.
Smoking tobacco has a huge impact on people who smoke, to the people around them, and the environment via toxic emissions and
greenhouse gas. Even disposing tobacco poses threats. As you dispose tobacco or cigarette wastes, it contribute to substantial amounts of
litter and leach toxic chemicals into the environment.

Tobacco having a significant amount of environmental impacts from growing up to it’s disposal, shows how much risk and threats
it pose.

 Health and Safety Risk

Risk Rating: Major

 Likelihood: Almost Certain

By proceeding to the advertisement of tobacco products, tobacco companies may possibly encounter health and safety risks as
consumers’ health may be one of the most affected by it. Given the fact that through advertising tobacco products, a lot of taxes will be
received by the government. By this, even if the government may utilize these taxes to implement health programs but still, not all citizens
will be benefited by it. Moreover, apart from the health of the tobacco consumers and users, non-smokers’ well-being and health can also be
afflicted.

 Financial Risk

Risk Rating: Major

Likelihood: Likely

By choosing the ban the advertising of tobacco products, tobacco companies may likely to experience financial risk as people may
never have a good pick of tobacco products. A lot of consumers may decide not to buy cigarettes and instead spend their money on other
things. With this, tobacco companies could lose major number of customers. It is a major risk for the fact that money is one of the greatest
capitals in making tobacco. Advertisements banning may affect the tobacco's place on nation's market.
Moreover, this risk also applies to the government which has decided to put all the advertisement and endorsements on halt. With the
decision of the government, they might also lose a major contributor on the state exchequer. Government might not be able to find an
immediate source of contributor to the state's fund considering that tobacco companies comprise most of the tax contribution. This financial
risk will most likely happen and also considered as a major risk. The government might also suffer in making the ends meet for the public
financing.

 Reputation Risk

Risk Rating: Major

Likelihood: Possible

Base on the result of this particular analysis, a business may possible experience reputation risk by the means of urging target
customer to patronize tobacco products for the sake of the commerce income without paying attention to the ethical principles as well as the
concern for the stakeholders’ health knowing the fact that their products are dangerous to a human body and environment. Through this,
tobacco business image will be damage and eventually undergo the process termination due to its worst impact on the humanities and
environment. For instance, the government funds will be affected and damage as well due to the absence of the major contributor of country’s
fund as a result of the aforementioned risk. Thus, each citizen will suffer to this occurrence because of the inefficient service provided by the
government.