1) outline the operational risks faced by Gemoil. Explain these in details.

Scenario: Suppose you are a risk management professional working for iManageRisk firm which is located in Singapore. iManageRisk provides consulting services to firms such as airline companies and mining companies on their risk management. Mr. Robert Lee, the treasurer of Gemoil Pte Ltd, approaches you today (assume it is now June 2021) to ask you for advice on the financial risk management for his company. Gemoil (Singapore) Pte Ltd is a trading company which specializes in international trade of petrochemicals and petrochemical equipment. In recent years, Gemoil mainly deals in crude oil, gasoil, diesel oil and fuel oil, with plans to increase its size and valuation over the next few years. Gemoil is a growth company that aims to a growing cash flow from expanding oil trading operations. As a growth company, Gemoils revenue is positively related to oil price and it aims to a growing cash flow from expanding oil trading operations and seeking to define up to 50 million gallons of jet fuel in September 2021. a The company's profit and loss are subject to many risk factors, such as the price change of oil and foreign exchange rate fluctuations. As the market price of oil is quite volatile, the company is considering using some strategies to manage its risk exposure. One way to hedge these exposures is to use futures contracts such as the futures contracts traded in the NYMEX