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Locate an article or example of a real use case based on this week's lesson. If you can't find an article or use case example make one up. Write a summary of the use case and describe how it is similar or different from the use case in the textbook.  

Your writeup should include:

1. Title Page

2. Content

3. References (if applicable)

Note

need 500 words in APA format – references – No Plagiarism

ITS 835 enterprise risk management Chapter 18

ERM – BlUE WOOD CHOCOLATES

University of Cumberlands

1

introduction

Background

Market overview

Blue Wood financial performance

Conclusion

University of Cumberlands

2

background

U.S. Manufacturer of chocolate products

Privately owned (family)

New CFO

Outsider

Brought in to stabilize financial performance

Blue Wood risk management practice in doubt

Banks wondering if RM gaps are causing unstable finances

Considering taking action

Internal politics and conflict

University of Cumberlands

3

Market overview

Growing market

Major competitive factors

Large producers

Brand recognition / reputation

Cocoa markets overview

Sugar markets overview

Milk markets overview

University of Cumberlands

4

Blue wood financial performance

Profitability measures worse that competitors

Lots of internal finger pointing

Deteriorated cash position

Currently borrowing against revolving line

Retained earnings falling

Substantial investments

In case cash flow couldn't cover dividend payments

Potential $10 million lawsuit

Risky entrance into currency hedges and futures

University of Cumberlands

5

conclusion

Business underperforming

Immediate action is necessary to respond to banks

CFO requires

Overall view of corporate objectives

Major risks facing the company

Must have support from the top

After initial pass

Implement ERM

University of Cumberlands

6