QUESTION ONE (1) 1) To implement its risk management framework, Quantum Commodity, a cocoa processing company, has recently appointed risk owners and champions for each functional unit. As one of the risk champions, your unit manager (risk owner) has assigned you the following tasks: i. Identify the top six (6) significant risks ii. Conduct a qualitative analysis and prioritize each risk iii. Develop a basic risk register b) Quantum Crude Limited, a Ghanaian Bulk Oil Distribution Company (BDC), plans to import 20 million barrels of crude oil within the next 12 months. The current exchange rate is 1 USD = 15.50 GHS, and crude oil is priced at $120 per barrel. The company has obtained a loan in Ghanaian Cedis, repayable over 60 months, to partially finance this import. With global trends suggesting rising oil prices and further depreciation of the Cedi, and in light of the recent increase in the monetary policy rate (MPR) by the Bank of Ghana's Monetary Policy Committee (MPC), as well as the impact of the ongoing Russian-Ukraine war, Quantum Crude Limited faces several risks. As the risk manager, identify these potential risks and propose specific hedging strategies for each. (Hint: Be concise and directly address relevant hedging strategies).
QUESTION ONE (1) 1) To implement its risk management framework, Quantum Commodity, a cocoa processing company, has recently appointed risk owners and champions for each functional unit. As one of the risk champions, your unit manager (risk owner) has assigned you the following tasks: i. Identify the top six (6) significant risks ii. Conduct a qualitative analysis and prioritize each risk iii. Develop a basic risk register b) Quantum Crude Limited, a Ghanaian Bulk Oil Distribution Company (BDC), plans to import 20 million barrels of crude oil within the next 12 months. The current exchange rate is 1 USD = 15.50 GHS, and crude oil is priced at $120 per barrel. The company has obtained a loan in Ghanaian Cedis, repayable over 60 months, to partially finance this import. With global trends suggesting rising oil prices and further depreciation of the Cedi, and in light of the recent increase in the monetary policy rate (MPR) by the Bank of Ghana's Monetary Policy Committee (MPC), as well as the impact of the ongoing Russian-Ukraine war, Quantum Crude Limited faces several risks. As the risk manager, identify these potential risks and propose specific hedging strategies for each. (Hint: Be concise and directly address relevant hedging strategies).
Business/Professional Ethics Directors/Executives/Acct
8th Edition
ISBN:9781337485913
Author:BROOKS
Publisher:BROOKS
Chapter8: Subprime Lending Fiasco-ethics Issues
Section: Chapter Questions
Problem 3.18EC
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning