Topic: Enterprise Risk Management

Question:

Chapter 18 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?

Instructions:

• Minimum 400 words
• At least 2 paragraphs
• Textbook Attached
• Need 3 APA References
• Single space and single page
• No Plagiarism please.

Answer preview

Risk management refers to the process of identifying, evaluating, monitoring, and managing potential risks in an organization. An effective risk management process should be consistent with the company`s objectives. In Kilgore Custom Company, the primary problem is hedging currency risks and currency swaps (Fraser, Simkins, Narvaez, 2014). The operational manager should, therefore, lead the risk management process since currency risks fall under the operations department. The operational manager, however, requires a close association with the finance department to assist in…

 

(500 words)