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Y019 Risk Management Frameworks.edited

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Running head: RISK MANAGEMENT FRAMEWORKS Risk Management Frameworks Name Institution Affiliation Date 1 RISK MANAGEMENT FRAMEWORKS 2 Introduction A risk management framework that is consistent with a company`s objectives is crucial. In Blue Wood Chocolate Company and Kilgore Company, financial risk management is essential to safeguard the companies from currency hedging and currency swaps that have adverse effects on the companies. Depending on a company`s functionality and size, a CRO is vital to govern risk management frameworks in companies (Andrén, and Lundqvist, 2017). For small companies with inadequate resources, offloading to insurance companies is essential to safeguard a business from internal and external threats. Enterprise Risk management is critical in both small and large companies since it protects a business entity from financial and operational shortcomings and ensures continuity of the business. Officers to lead Financial Risk Management Frameworks in Blue Wood and Kilgore Company In Blue Wood Chocolate Company, the primary issue is inadequate reporting and communication, causing senior managers to pursue their roles without evaluation. Insufficient communication and reporting in Blue Wood Company inhibit the management from identifying reasons for financial shortcomings (Fraser, Simkins, and Narvaez, 2014). In this case, in Blue Wood Company, the chief financial officer should lead the financial risk management processes because she has the expertis ...
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