Financial Risk Management: A Practitioner's Guide

Running head: FINANCIAL RISK MANAGEMENT
Financial Risk Management
Name of the Student
Name of the University
Author Note

FINANCIAL RISK MANAGEMENT1
Table of Contents
Answer to Question (a)..............................................................................................................2
Answer to Question (b)..............................................................................................................3
Answer to Question (c)..............................................................................................................4
Answer to Question (d)..............................................................................................................5
References..................................................................................................................................7

FINANCIAL RISK MANAGEMENT2
Answer to Question (a)
The company Trafigura Group Pte Ltd outlines some Key Steps includes in the
Enterprise Risk Management process due to the recent crisis of coronavirus, which is
affecting the company financially and non-financially.
 Initial Steps
Start with the Personnel as the welfare of the people is a crucial resource that the
company has to keep as its main concern. Without the personnel, the company cannot be able
to perform its functions. The second concern is about Maintaining a Healthy Skepticism in
the early stage of such disasters as accurate data is a rare thing to get. Impact records can be
an option, but maintaining contact with the local people can give a reliable source of data.
The company must Run Outage Scenarios for the unforeseen impacts to assess its
possibilities. China has mostly affected due to the crisis of coronavirus, so predictably be
unexpected consequences (Wang, Zhang and He 2020). The level of inventory is not high
enough that will cover short-term outages so the company can expect to cause extensive trails
on common core components and materials. Create a Detailed Operation Center (EOC) that
should be existing at the plant level with some plan of actions for proper communication and
coordination, designated roles for members, protocols to communicate, and make decisions
with including customers and suppliers.
 Designing for Response
The coronavirus impact is to be dealt sensibly with the disruptions of a large-scale
supply chain. The company should initiate to Know all its Suppliers by mapping its suppliers
so that to avoid losing available capacity (Sanchis, Canetta and Poler 2020). Develop a
relationship early with a significant resource. Create a Continuity Plan for the Business that