You have just landed a summer internship (congratulations) with the management information services group of Pirelli, the

Question:

You have just landed a summer internship (congratulations) with the management information services group of Pirelli, the Italian global tire manufacturer. Management is acutely aware of the importance of risk management and the market€™s concern with enterprise risk. Although the firm has an active hedging program, management is interested in an impartial assessment of the company€™s risk exposure from a layman€™s point of view. Accordingly, your supervisor asks you to take a look at the company€™s published and accompanying notes appearing in its 2008 annual report. You are to identify as many exposures as you can that impact the company using the worksheet format provided below. To sensitize you to the company€™s current risk management programs, you are also asked to identify the exposures that the company is currently hedging. Pirelli€™s annual report can be assessed online at www.Pirelli.com.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...