Assignment
Question 1
The following questions are intended to guide discussion about Blue Wood and how such a company can face up to and deal with issues of risk management throughout the enterprise.
The questions are not necessarily exhaustive for the case and it is intended that examination and discussion can be developed further if desired.
Discussion can center on the importance of culture within an organization, how to change it, how to set priorities, how much is possible and how fast, as well as the related costs and benefits.
1. What are the prospects and consequences for Blue Wood if it carries on the way it has been?
2. Are corporate objectives and strategy important and if so, why?
3. Discuss why and how either an FRM (financial risk management) or an ERM framework might benefit a company like Blue Wood.
4. What are the main challenges in developing and implementing a risk management framework for Blue Wood? How does the ownership structure affect these challenges?
5. If the company is to develop a risk management framework, who should lead the process? Should a Chief Risk Officer (CRO) be appointed? If so, to whom should he/she report and have access to? How could smaller companies without the resources for a dedicated CRO deal with ERM? What is the role for the board in such a process?
6. Should Blue Wood hedge its exposures to commodities and foreign currencies? If so, how should it go about hedging; for example, in terms of: managing, monitoring, and evaluating the hedging program amounts hedged time horizon of the hedges instruments used budget for option premiums accounting and reporting the hedging program
7. Are there other areas where Blue Wood should consider a risk management program?
Question 2
Presented special risk management issues with Blue Wood Chocolates, and chapter 19 presented various financial risks at Kilgore Custom Milling. If Blue Wood Chocolate and Kilgore Custom Milling are to develop a risk management framework, who should lead the process at each company? Should a Chief Risk Officer (CRO) be appointed? If so, to whom should he/she report and have access to? How could smaller companies without the resources for a dedicated CRO deal with ERM? What is the role for the board in such a process?
To complete this assignment, you must ANSWER ALL OF THE QUESTIONS Below Mentioned
A) Create a new thread. As indicated above, if Blue Wood Chocolate and Kilgore Custom Milling are to develop a risk management framework, who should lead the process at each company? Should a Chief Risk Officer (CRO) be appointed? If so, to whom should he/she report and have access to? How could smaller companies without the resources for a dedicated CRO deal with ERM? What is the role for the board in such a process?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.