energy sources become more reliable. Required: For each of the following risks for Goldie PLC, identify the level/severity of risk and explain your classification. Financial risk Project risk Reputation risk
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. Read the following scenario and answer the questions that follow:
Goldie PLC is a global company incorporated in the UK, that extracts valuable minerals from the earth. Mining is a risky business with a death toll averaging 100 deaths per annum in the UK. Goldie has recently had a coal mine collapse killing two men and trapping four others for three days. The accident made the national news and made Goldie well known. Goldie is financed by equity and has a large cash balance and no debt. It has come to the attention of the board that the future price of coal is
Required:
For each of the following risks for Goldie PLC, identify the level/severity of risk and explain your classification.
- Financial risk
- Project risk
- Reputation risk
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