1.Anytown Financial Services Inc. is a small company that provides investment advice and invests money on behalf of clients, which are primarily small businesses and non-profit organizations in Riverside County. The company has been in operation for 5 years and has 6 employees, including the founder who owns the company. The company rents an office in beautiful downtown riverside, and owns the office furniture and equipment used in the business. The company invests approximately $10 million of clients fund in a variety of mutual funds and invests approximately $50,000 of its own funds in short term corporate bonds. You have been asked to advise the company on its risks. Your first step is to identify and describe one of each of the following types of risk that this company faces: hazard, financial, operational and strategic.

2.In general (not necessarily the specific risk you identified above), which type of risk (hazard, financial, operational or strategic) represents the greatest threat to Anytown Financial Services Inc. explain your choice.

3.The COSO approach to ERM is a very thorough and detailed approach. What is the greatest danger for a firm that relies on this approach?

4.Four components of a publicly traded computer software company are its investors, its management, its employees and its customers. In a principal-agent situation, which of these components would be considered the principals? Which would be the agents?

5.A university has determined two key risk indicators that are critical for maintaining their desired ranking are the percentage of accepted candidates that decide to enroll in the university and the percent of students who graduate within 6 years of enrolling. Illustrate (do not just describe in words) how this information could be displayed for the senior administrators of the university in a risk dashboard format.