Consider Exhibit 3 of the case, list and discuss the five most risky elements significant for the operation

2 EXHIBIT 3: CHANGES AND CAUSES OF MAJOR RISKS IN 2017 COMPARED WITH 2016 Serial Number Major Risks in 2016 Major Risks 2017 Conditions 1 Marketing risk Performance risk Adjustment of risk order 2 Performance risk Marketing risk Adjustment of risk order Safety production and 3 Safety production and quality risk quality risk Remained 4 Exchange rate risk Compliance risk Adjustment of risk order and name 5 Talent reserve risk Investment risk Adjustment of risk order 6 Brand management risk Human resource risk Adjustment of risk order and name 7 Survey and design risk of construction Exchange rate risk Adjustment of risk order Legal risk of foreign operations Cost control risk New risk Cash flow 9 Cash flow management risk Remained management risk 10 Investment risk Survey and design risk Adjustment of risk order and name 8