Plan of Attack_Case Study-1

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University of Illinois, Urbana Champaign *

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530

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Finance

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Feb 20, 2024

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pdf

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1 FIN 433 / FIN 530 / Instructor: L. McChristian Recommended Plan of Attack for Case Project, Fall 2023 Sept. 13, 2023 Getting started is the hardest part, so get something on paper. Perfection comes in the editing phase. Week of Sept. 11 You should know which of the 11 projects in the Euroland Foods case your team will support. You should have completed a strategic assessment of these projects. For the projects that will NOT be going forward, all you need to do is have a rationale for why this decision was made. Mention the inherent risks in that project category. This does not need to be very detailed. Think about the points you would need to make to tell the project owner “no” in the best way possible. Begin the risk identification process for each of the six risk categories listed in the case Project Guidance sheet. Week of Sept. 18 FIN 530 students will be responsible for four (4) of the risk categories: Strategic, Operational, Market and Reputation Risk. FIN 433 students will be responsible for two (2) risk categories: Compliance and Credit and will be detailing tactics for risk mitigation in each of the six risk categories. The questions listed under each category are your starting points for researching. As a team, for each risk category, you will be developing a list of the possible associated risks. Start with the Strategic Risks, Market Risks and Operational Risk categories. Doing these first will give you a good overview/foundation for the entire case. Week of Sept. 25 After your team has identified the risks inherent in the risk categories above, create two separate heat maps to rank the likelihood and impact of the risks for Strategic and Operational risks. You will be making judgement calls on this ranking in the absence of data. (See the next page for a risk map template. You can use the example or any risk map template.) Conduct online research for examples of what companies like Euroland Foods have done right and wrong related to the projects. This insight provides an overview of the industry. Week of Oct. 2 Using the heat maps your team created, identify which risks you will address. Research options and tactics to determine how and what actions to take to prevent or mitigate the risks. Also identify what you recommend for the moderate risks and explain how/why you made the decisions. Prepare the first draft of a slide presentation that details your analysis on Strategic, Operational, Market and Reputation Risk. There will be information you do not have. Address it by including a list of informational needs.
2 Week of Oct. 9 This is the wrap-up week for the FIN 530 students. The risk assessment decisions for Strategic, Operational, Market and Reputational risks should be complete and turned in to the professor by Monday, Oct. 9 at midnight. On Monday, Oct. 9, each group will make a presentation of no more than 10 minutes. Select 2-3 FIN 530 students as spokespeople to represent your group. While the four (4) categories should be completed and ready to turn in by the end of the day, teams present only one of them. Team 1 and Team 2: Strategic Risk Team 3: Operational Team 4: Market Team 5: Reputational Presentation format for slides due 10/9: Executive summary, list of the projects your team has decided to fund, very brief rationale for denying/delaying other projects, details about your presentation category and evidence for why it should go forward. Insert your strategic SWOT analysis or other risk analysis tool you used to support decisions. The intent of the presentations is to give students a chance to exercise their professional speaking skills and to enable the class to learn the scope of various approaches and gain insights from teams. Knowledge gained from the presentations can be used to improve your team project for the second phase. FIN 433 students will continue to follow the details in the Project Guidance sheet and work on the risk treatment for the risk categories. Weeks of Oct. 16 Nov. 4 Be sure to address the questions listed in the case study. You will also want to include examples you found in research and from online sources as follows: o For Reputation Risk: Identify a food manufacturing business like Euroland Foods that took a reputational “hit” and suffered bad press and negative consequences. Explain the incident and create a Root Cause Analysis chart to demonstrate where and how things went wrong. Create a crisis communication outline to determine how the company would respond if it experienced a similar crisis. o For Compliance Risk: Create a list of the top 10 markets (globally and/or by U.S. state) with the most challenging compliance rules for companies like Euroland Foods. Which are the top 10 areas for less restrictive commerce? Identify how the compliance standards are impacting Market Risk. o For Operational Risk: You are to identify which operational risks are insurable, according to one of the questions in the case study. You will also recommend what types of insurance coverage to purchase. REPORT FORMAT The final deliverable will be a complete slide presentation that features the full requirements of the case study, due no later than Friday, November 17 at midnight. In class the week of November 13, each group will be making a brief oral presentation of its findings. (More details to come) Materials from textbooks, class slides and other references require appropriate citation. Devote an adequate amount of
3 time to loss control and loss prevention. Do not merely mention a loss control technique; justify it in writing. The quality of the slide presentation counts, so think about formatting, writing and organization. You are free to design it any way the team prefers. This project can favorably impress prospective employers, as it will demonstrate risk management expertise. Resources: 7 Ways to Identify Risks (projectriskcoach.com) Risk Management Association | Education, Products & Community (rmahq.org) Bureau of Consumer Protection | Federal Trade Commission (ftc.gov) Understanding Compliance Risk in Finance and Banking (isaca.org) The Guide to Food Marketing: Trends, Strategies, and More (abasto.com)
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