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 forecast to fall, as renewable energy sources become more reliable.

For each of the following risks for Goldie PLC, identify the level/severity of risk and explain your classification

. a. Financial risk 

b. Project risk

c. Reputation risk

3. Describe three benefits of effective ERM

4. There are multiple factors that influence the risk appetite of a business. By use of relevant examples, explain how each of the following factors might affect the risk appetite of a business.

 a. Nature of product being manufactured. 

b. Amount of change in the market. 

c. Reputation of the company

5. Identify four risk identification methods. 

6. Describe the two primary measures used to quantify risk and its impact? 

7. Describe the role employees play as risk owners. 

8. Using relevant examples, explain the four options that a small business can apply in controlling risk.

9.A UK company is planning to build and operate a factory in West Africa. Discuss the potential political risks that may arise and recommend risk mitigation strategies that could be implemented to bring these risks to a satisfactory level.

Answer rating: 100% (QA)

a Financial risk The level of financial risk for Goldie PLC can be classified as moderate to high While the company has a large cash balance and no debt the forecasted fall in coal prices poses a sign... View the full answer