Discussion 9

Chapter 19 presented various financial risks at Kilgore Custom Milling. If Kilgore Custom Milling is to develop a risk management framework, who should lead the process?  The CFO at Kilgore has specific risk management strategies for hedging while the CEO has no knowledge of or interest in hedging. Who should have the final say in the decision to hedge and how to hedge?  The CEO, CFO, or another party not yet named?  What is the role for the board of directors in such a process? If you were the CEO, what would be your next step?