Give appropriate discussion on the following questions after studying each case. There is no minimum words requirement. Grading is based on comprehensiveness and clarity.

I. Hydro One ERM (25%)

Describe Hydro Ones ERM process and benefits from ERM practice.

II. LEGO Group Strategic Management (15%)

Discuss how the LEGO Group incorporated strategic management in enterprise risk management.

III. UGG Weather Derivatives (20%)

How did UGG estimate business risk exposure?

Describe the contract feature of weather derivatives.

Whats the cost of using weather derivatives?

Whats the minimum profit when UGG uses weather derivatives?

IV. Southwest Airlines Derivatives Instruments (40%)

	2007 (10%)	2018 (10%)
Derivatives and strategies used
Hedged exposure
Cost
Gain/Loss
Hedging inefficiencies

Discuss Southwest Airlines strategy change on using derivatives in the past decade. Comment impact factors on hedging strategy change. (20%)