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I need the comprehensive explanation of risk for the general business overview and CFO parts. The explanation should include the description based on COBIT 5.

I need the comprehensive explanation of risk for the general business overview and CFO parts. The explanation should include the description based on COBIT 5. I attach the narrative of the case and complete COBIT 5.image text in transcribed

Level 2 Name Acme Corporation - Business Overview Overview Acme Corporation (\"Acme\") is the world's largest ferrous (metals that consist primarily of iron) and non-ferrous metal and electronics recycler. Acme has over 300 locations on 5 continents, and over 6,000 employees. Acme operates two primary businesses, Metals Recycling and Recycling Solutions. Metals Recycling Acme has operations encompassing the buying, processing and selling of ferrous and non-ferrous recycled metals. Their metals recycling operations are geographically diverse, with operations on 5 continents, including the United States, Australia and the United Kingdom, comprising a network of processing facilities, many with deep-water port access, supported by an extensive network of feeder yards from which to source recyclable ferrous and non-ferrous metals. Acme buys ferrous metal from metal dealers, peddlers, auto wreckers, demolition firms and others who generate obsolete metal and from manufacturers who generate industrial metal. Acme processes ferrous metal for resale through a variety of methods, including sorting, shredding, cutting, torching, baling or breaking. After processing, ferrous recycled metal is sold to end users such as electric arc furnace mills, integrated steel mills, foundries and brokers. Acme sources non-ferrous metals from manufacturers, known as production offcuts, and from generators of electricity, telecommunication service providers, and others, who generate obsolete metal. Peddlers and metal dealers, who collect from a variety of sources, also deliver material direct to their facilities. Recycling Solutions Recycling Solutions is a global e-recycling business, with established operations in the United Kingdom, Continental Europe and North America and a developing presence in the Asia-Pacific region and Africa. Recycling Solutions offers a comprehensive and cost-effective recycling service for \"end of life\" and redundant electrical and electronic equipment and materials, ranging from product assessment to recycling. Recycling Solutions works with Original Equipment Manufacturers (OEMs), Contract Equipment Manufacturers (CEMs), suppliers, importers, lease and finance companies, sector organizations and end users to enable them to comply with their responsibilities under relevant environmental regulations, including the European Union's WEEE legislation. Acme Limited and Marcus Management Inc. On March 14, 2008, Australian-based Acme Limited purchased US-based Marcus Management Inc. to form Acme MM, the world's largest metals and electronics recycler. Acme Limited purchased the issued capital of Marcus Management Inc. for $1.52 billion. Marcus Management Inc. was one of the largest full service scrap metal recyclers in the United States with locations in 17 states. The acquisition was consummated to strengthen the company's position in the North American scrap recycling market. The acquisition was complementary as Acme Limited's operations in North America were primarily export-focused while Marcus Management Inc's operations were primarily Level 2 Name domestic-focused and included a large non-ferrous recycling business. The resulting leadership team is largely comprised of legacy Marcus Management executives. ENVIRONMENT Industry Overview The US scrap metals-recycling industry includes about 8,000 companies with combined annual revenue of $30 billion. Large national scrap metal processors include Commercial Metals, David J. Joseph, ELG Haniel, OmniSource, Philip Services, Schnitzer Steel, and Rio Tinto Alcan. Large companies that collect trash as well as recyclable products such as paper, plastic, and glass include Waste Management and Republic Services. A typical local scrap metal processor has annual revenue under $5 million. The industry is fragmented and local because the low value-to-weight ratio of most scrap discourages long-distance transportation. The top 50 companies hold only about 50 percent of the market. Competitive Landscape Demand from the steel, auto, and construction industries drives the scrap metal industry. The profitability of individual companies depends on cultivating relationships with suppliers and buyers. Most companies are small and compete by specializing in one type of material in their local market. Large companies have economies of scale and have the financial ability to invest in new, faster machinery. The industry is capital-intensive with average annual revenue per employee at about $350,000. Products, Operations & Technology Scrap metals-recycling companies collect, process, and resell materials like metals, glass, plastics, and paper. Recycling iron and steel scrap comprises about half of the industry's revenue. Scrap metal is collected at junkyards, recycling centers, or directly at industrial sites. Scrap metal processors often have long-standing relationships with industrial producers of scrap, and have drop-boxes on their sites for efficient collection. Because the quality of new steel made from scrap depends on the quality of the scrap, an extensive metal scrap grading system exists, with more than 80 grades of unprocessed ferrous scrap, including sheet iron; "white goods" (appliances); "unclean motor block"; and "whole prepared car bodies". Metals processors use crane-mounted "alligator" or scissor shears and stationary guillotine shears to cut large pieces of scrap, such as girders, into smaller pieces. Cars, appliances, and other light scrap are processed by shredders that rapidly break the scrap into fist-sized pieces. Shredding operations use magnets to separate ferrous metals and non-ferrous metals from residual "shredder fluff," which is put into landfills. Many non-ferrous metals have a higher value than ferrous iron or steel, and are therefore sorted and separated using more labor-intensive methods. Light-gauge metals may be processed in balers, large hydraulic presses that compress the metal into uniform blocks. Non-ferrous metals are often melted or pressed into ingots or "pigs" for the end-user. Nonmetal materials like paper, glass, plastics, and rubber undergo less processing than metals before being shipped. Paper and cardboard are collected at recycling centers or from commercial locations, then sorted and baled. Glass is collected similarly, sorted by color and then crushed into small pieces called "cullet". Plastics, mainly from bottles, are sorted by type and then baled, although some processors cut them into flakes or pellets. Rubber tires are processed by removing Level 2 Name steel belts mechanically, then shredding the tire into chips varying from three inches to the size of a grain of sand. Scrap metal is primarily generated by industrial and commercial businesses, while nonmetal materials are generated by consumers and collected primarily by big waste management companies. Business Infrastructure STRATEGY & POLICIES Acme is committed to being a truly \"green\" company. The company has developed and invested in sustainable programs and processes. By its very nature, the recycling business is a \"green\" operation. Acme's goal is to enhance and grow its core metal recycling business internationally while also developing an innovative recycling solutions business. Overall company objectives include: 1. To employ a best-practice approach to safety for our people, visitors and facilities 2. To capture and nurture the very best ideas, wherever they come from, to benefit our customers 3. To ensure we exceed the expectations of our customers, across all divisions 4. To take a disciplined approach to all our investments and financial dealings 5. To ensure we approach each other and all our stakeholders with integrity and respect 6. To ensure we develop our business, with a view to protecting the environment BUSINESS PROCESSES Metals Recycling The following provides a high-level overview of the day-to-day business processes related to the scrap metal business: A metal provider brings scrap to a yard via truck (generally). An operator guides the truck onto a scale, all passengers exit the truck, and the truck is weighed. The truck is unloaded at a designated area, and the load is evaluated (metal type, fillers, etc.) and the truck is reweighed. A ticket is generated noting the type of metal and total weight and the provider is paid. The metal is then organized into large piles, and eventually processed by large machinery that can dissect metals from non-metals and ferrous from non-ferrous. The metal is subsequently cut into a workable size, loaded onto a train, truck, or barge (ship), and shipped to a customer. SYSTEMS & DATA The diagram below summarizes Acme' network architecture. Level 2 Name Interview Notes IT Risk Assessment Interviewee Name: Job Title: Rob Robinson Executive Vice President & Chief Financial Officer Date: Friday, November 1, 2013 Time: 3:00 PM CT Meeting Facilitators: Protiviti Managing Director, Protiviti Director Other Attendees: Protiviti Manager Role / Responsibilities Rob is the Group CFO (all regional CFO's report to Rob), and he reports directly to Dan Davidson, CEO. Key Initiatives / Focus Areas Australasia: Microsoft Dynamics AX Implementation CME: Navision Implementation Group Level: Great Plains Migration Aerospace: Victor E Enterprises Migration IT Risk Considerations / Improvement Opportunities Completion of the IT Projects referenced above (on time, on budget, etc.) IT Successes Satisfied with IT Disaster in the US; limited visibility in Australia and Europe. Rob indicates that he has access to the data he needs to make business decisions. IT Governance Evaluated key elements of IT governance to ensure that the IT function supports business goals, maximizes returns on investments in IT and appropriately manages IT-related risks. Discussed the 'topics' below and asked the interviewee to provide a rating of 15 (a score of 1 means that process maturity / capabilities are extremely low, and a score of 5 means that Acme MM is excelling with respect to the IT Governance topic). Page 1 of 2 Interview Notes IT Risk Assessment IT Governance Topic The enterprise and IT objectives are aligned. IT resources, skills, and infrastructure are suitable to meet the enterprise strategic objectives. IT effort is focused on supporting / enabling business objectives rather than reactive firefighting. Major IT decisions are made and implemented in an adequate amount of time. IT projects consistently deliver what they promised. IT is critical to sustaining and growing the enterprise. Score 5 4 4 41 4 4 Key comments include: o Focused on keeping all administrative costs down, including IT, given the low gross margins of the business (10-13%); purposely trying not to over-invest. o IT is extremely tactical, by design. There is limited interest in leveraging IT as a strategic business partner (focus should remain on \"keeping the lights on and the water running\"). 1 Very satisfied in the US (5); neutral in Australia (3) Page 2 of 2

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