A listing of the rupee losses associated with each possible risk management tool and each possible outcome. For example, a decision to retain would produce a loss of Rs. 10,000 if a Rs. 10,000 loss occurs, A decision to purchase complete Insurance would produce a ‘loss’ of the Insurance premium no matter what the outcome may be. The original loss matrix should be converted to an after-tax basis and extended o include the intangible costs (worry caused by short-run uncertainty) as well as the tangible rupee losses.