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In Chapter 15, Edmonton used the PM-squared risk scorecard process to manage risks, and that included five steps as per the textbook. To reflect on this, I bring up a recent lawsuit against Tesla, where the petitioner claimed that some Tesla cars accelerate suddenly causing crashes. A similar lawsuit was filed a few years ago against Toyota, however, as opposed to Toyota who took few months to investigate and finally conclude the claims are baseless, the response of Tesla was swift and complete denial. The immediate outcome was a share price spike in Tesla’s case and a sharp decline in Toyota’s case. Probably Tesla’s assessment of the impact and likelihood of the actual problem was carried out and led to their swift denial. If you were a Tesla executive, would you handle the issue differently? Please explain.

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