XYZ corporation is an Indiana-based corporation and has 5 manufacturing plants. One of the corporation's objectives is to have 10 manufacturing plants active with the next 5 years. The corporation employs a risk manager to minimum risks faced by the corporation. Collection of information from previous business transactions is crucial to forecasting. The risk manager is using data to analyze the risks for the future additions of manufacturing plants. Data collected was managed to ensure the data was accurate and relevant for manipulation in forecasting loss probability.
1. Do you think the risk manager should entirely depend on the data collection from existing manufacturing plants? Support your answer.
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