4. The world is changing the era of fossil fuels may be coming to an end soon. Therefore, X-Hell Plc., which has dominated this market for years by creating an oil and gas supply-chain holding of fuel distributors and oil refineries all over the world, is reviewing its business model and trying to figure out how to move ahead in this new environment.

After coming across your CV in a professional social media platform and knowing that you have a broad understanding of management accounting and decision-making processes, the managing director contacted you and asked you to conduct some risk analysis for this company. Therefore, you must:

Required:

1. a) Identify and briefly explain three generic types of risk attached to these new market conditions.

[6 Marks]

2. b) Identify four specific sources of risk and remediation actions to deal with these risks in relation to these new market conditions if :

i) The X-Hell decides to move away completely from fossil fuels and stablish a new green business model focusing on solar power plants and wind turbines.

[8 marks]

ii) The European parliament promulgates a new regulation to abruptly reduce Europe carbon footprint, only allowing electric cars in mega cities and fines to more polluter companies;

[8 marks]

3. c) Explain why all three of the generic risks you identified in (a) above do not apply equally to both specific cases in b above.

(3 Marks)