Transom Company builds trucks. It buys components from parts manufacturers and assembles them. The company has three standard models and also designs trucks to unique specifications, in consultation with customer designers and its own in-house specialists. All trucks are built to order, that is, there is no inventory of completed trucks, only of some core sub-assemblies.

REQUIRED

Using the eight phases of the COSO ERM integrated frame¬ work, identify two risks for Transom, and describe how the risks should be managed.