Introduction
There are three sections to the assignment you are required to complete each part, the assignment is worth 20% of the overall assessment for the subject. The assignment can be completed as a group assignment with the maximum number of students in a group to be 3.
The Assignment is to be uploaded into moodle by the Friday end of week 11.
Please place all group members’ names and student ID on the front page and load for all students in Moodle.
The assignment is designed to allow each group to provide their knowledge of a number of aspects of the course. Some of information will require further research.The assignment contains the following sections the marks assigned to each question are indicated.
Section A
Case study operational risks -20 marks. A short presentation is required 5 to 10 minutes, THIS WILL BE HELD IN WEEK 12
Section B
Financial Risk Management -Situation analysis 20 marks
Section C
Three (3) Shortanswer questions 3 -20 marks.
Section A – 20 marks
CASE SYNOPSIS
The case relates to risk assessment in a multinational organization which a joint venture between entities in two different countries. It is loosely based on a real world situation and so, the organization’s name and potential identifying information are disguised.
The case is about a multinational company that is owned by Chinese and Japanese partners in a joint venture relationship. The company has been in business for a number of years and operates one ferry boat carrying passengers and cargo between China and Japan. The business is competitive (low barrier to entry), seasonal (most income received in second half of year), directional (higher volume from China), and skewed (high income from cargo shipments). The ferry boat is aging and the company is concerned about the replacement cost.
Also, all payments are made in foreign currencies (US Dollars or Japanese yen) which are converted into the local currency at year end. The company currently absorbs all…