Ayi & Co. is into the bottling of water for sale. They have a presence in all 16 regions of Ghana. The companys main factory is situated in Accra, the capital of Ghana. You have been employed as the Risk Manager of Ayi & Co. The company has been in existence for 10 years and throughout this period they have tried out a number of ways to manage their risks. As part of the core objectives set out by Management, you are to develop an effective risk financing strategy.

You have been asked by the managing director to present a paper on your proposed risk financing strategy. You are also to explain the key factors influencing your choice of strategy