Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC is a company plantation and processing coconut palm. ABC has 8 palm garden with details as following: Garden Capacity Production ('000 Tons)/Year Permission Effort

ABC is a company plantation and processing coconut palm. ABC has 8 palm garden with details as following:

Garden

Capacity Production

('000 Tons)/Year

Permission Effort Plantation

Garden & Factory Sumatra 1

40

Permission will finished in 15 year

Garden & Factory Sumatra 2

22

Permission will finished in 10 year

Garden & Factory Sumatra 3

18

Permission will finished in 5 year

Garden & Factory Sumatra 4

68

Permission will finished in 12 year

Garden & Factory Borneo 1

18

Permission will finished in 8 year

Garden & Factory Borneo 2

20

Permission will finished in 12 year

Garden & Factory Borneo 3

28

Permission will finished in 7 year

Garden & Factory Borneo 4

27

Permission will finished in 9 year

ABC sells 60% of its production for export purposes, while the other 40% is for necessities domestic. On average, ABC can book an average net profit of 10% of the value of sale (for export and sale in country).

Following is a number of information other which related:

Average production ABC is as big as 80% from capacity production annual.

ABC was found guilty by the Supreme Court (MA) as one of the companies that Becomes cause of fire forest big in Sumatra on year 2015. ABC considered negligent in taking actions deemed necessary to prevent the occurrence of fire forest in region work.

As a follow-up to the Supreme Court's decision, the Government revoked plantation permits for plantations ABC largest palm oil company in Sumatra. This decision is effective from January 2023.

In 2023, low rainfall ( el nino) in the Borneo will affect the decline in production up to 40% of the average production rate. According to available data, rainfall in region Borneo will normal on year 2022.

The increase in world demand affects the selling price of palm oil, estimated in 2 year to front price average palm as big as Rp 28 million/ton for export, currently price flat- Domestic average according to the upper limit price set by the government is IDR 15 million/ton.

The government considers the failure of palm oil producers to comply with the provisions Domestic Mark Bond (DMO), Becomes reason happening crisis oil fry in country. Palm oil producers themselves are required to meet a minimum DMO of 30% of total the production.

Government pull out permission export whole company palm which fail Fulfill provision DMO and requires the company to sell its entire production for the domestic market. This provision will be in effect for at least 2022 and will be studied further for the following year. Palm oil producers who fail to comply provision this will revoked permission his business by Government.

Question:

Please make a risk assessment that covers identification on 2 risk ( risk events) which may be faced by ABC along with the causes of risk, assessment of risk impact value and justification, as well as proposed mitigation plan for each risk. The risk assessment must use working Paper in accordance with templates in lower.

Identification risk conducted for time period 2 year to front (2022-2023).

Notes:

Give a quantitative risk level assessment of the potential impacts loss financial and/or lost opportunity ( opportunity loss ) of risk which faced by ABC. Evaluation risk use risk Assessment Criteria Matrix (RACM) in lower.

risk Assessment Criteria Matrix (RACM) Criteria Impact

Justification results score impact from risk assessment which conducted is aspect main in evaluation.

Templates Paper Work risk Assessment and Quantification

No. Risk

Risk

Reason Risk

Impact Value (1-5)

Justification Score Impact

Suggestion Plan Mitigation

(filled with no Risk order which identified)

(filled with potency risk for PT XYZ based on the information that available)

(filled with reason risk for PT XYZ that has been identified on column "Risk")

(filled with value financial impact (1-5) based on risk Assessment Criteria Matrix (RACM) Criteria The impact that given)

(filled with formulation and quantification impact value according to value on column "Score Impact")

(To be filled in with the proposed mitigation plan required based on the Risk identified with consider causes and values impact)

1

2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Discuss the Rights issue procedure in detail.

Answered: 1 week ago

Question

Explain the procedure for valuation of shares.

Answered: 1 week ago

Question

Which months of this year 5 Mondays ?

Answered: 1 week ago

Question

Define Leap year?

Answered: 1 week ago