Assume that the management team has hired you to advise them on their overall risk profile and has asked you to prepare a SWOT analysis for their review and as input to the upcoming strategic planning session.
1. What would you put into your analysis? Additionally, how does your analysis affect the risk management strategies that Kilgore might choose to utilize?
2. What are the major opportunities and downside risks with the hedging framework that you suggest?
3. Besides hedging the Japanese manufacturer contract, how else might Kilgore effectively use financial risk management?
4. What factors need to be considered when integrating financial risk management into an enterprise risk management framework?
5. What are the main financial risk management issues that Cathy and the rest of the management team at Kilgore need to focus on?