Question 1 After completing your college degren, you aecepted an exeiting new job with Sleep Me Siln. Bhd. This new position will involve a great deal of travel and some other challenging responsibilities. Part of your job is explaining enterprise risk management to your Chief Executive Officer (CDO). Sleep Me Sdn. Bhd starting in the year 2015 and until loday. Sleeping Me speciklises in manulacturing 100% natural latex mattresses, beds and other bodding products, using one of Nother Nature's precious resources to help every household to sleep better. Latex Mattresses can eliminate pressure points, promote proper spinal alignment, and even body weight distribution. Latex Mattresses are the perfect recipe for back pain. The company has confined its operations only to the Malaysian inarket; the CLO wants to expand into the overseas markel, such as Indonesia, due to the local shorlage of workers and rubber. However. the Chicf Finance officer mentioned that they should develop the Singapore market first because it is similar to the Malaysian market, and they do not need to invest huge money in the manufacturing plant in Indonesia. In September 2022, the company exeruised an exclusive right granted by the government of Indonesia to export and sell the products in Indonesia with one condition the eompany must set up a manufacturing plant in Indonesia and obtain the ISO31000 process in 10 years after issuing the exclusive right to operate. 'There have been several ambitious plans by investors from China to set up the manufacturing and operation plant in Indonesia; however, they have been temporarily on hold due to funding issues. The Slenp Me Sdn. Bhd plans to apply for a recognised 1S031000 in 2026. This will require a factory audit, including the review of the safety process of the products and evidence that documented procedures perforn activities. The ISO 31000 certification is valid for ten years and will be issued if no significant nonconformitics have been found. The CEO is conlident that the company can handle the extra volume with its existing facilities. Still, he is unsure about managing the risk of selling its products to Australia due to exchange rate risk. However, the CDO is enthusiastic about the plan. Still, he is worried about the implications of the foreign expansion on the firm's risk management process and is open to partnerships with Indonesia and Thailand. He has asked you, the firm's most rocently hired risk manager, to help him in the below arcas: Required: (a) Fvaluate Fntrepreneur risks the organisation faces intemally on the strategies to expand the oversea market. (b) Identifies and explains conmon risks the organisation will need to face when penetrating the lndoncsian market. (c) Please explain how to apply the risk management process to manage to Sleep Me Sdn. Bhd's operational risks. Bhd., particulatly in a dynamic business errironment. (d) Recommend alternative risk transfors method to reduee the Sleep Me on overseas expend plan risks. Question 1 After completing your college degren, you aecepted an exeiting new job with Sleep Me Siln. Bhd. This new position will involve a great deal of travel and some other challenging responsibilities. Part of your job is explaining enterprise risk management to your Chief Executive Officer (CDO). Sleep Me Sdn. Bhd starting in the year 2015 and until loday. Sleeping Me speciklises in manulacturing 100% natural latex mattresses, beds and other bodding products, using one of Nother Nature's precious resources to help every household to sleep better. Latex Mattresses can eliminate pressure points, promote proper spinal alignment, and even body weight distribution. Latex Mattresses are the perfect recipe for back pain. The company has confined its operations only to the Malaysian inarket; the CLO wants to expand into the overseas markel, such as Indonesia, due to the local shorlage of workers and rubber. However. the Chicf Finance officer mentioned that they should develop the Singapore market first because it is similar to the Malaysian market, and they do not need to invest huge money in the manufacturing plant in Indonesia. In September 2022, the company exeruised an exclusive right granted by the government of Indonesia to export and sell the products in Indonesia with one condition the eompany must set up a manufacturing plant in Indonesia and obtain the ISO31000 process in 10 years after issuing the exclusive right to operate. 'There have been several ambitious plans by investors from China to set up the manufacturing and operation plant in Indonesia; however, they have been temporarily on hold due to funding issues. The Slenp Me Sdn. Bhd plans to apply for a recognised 1S031000 in 2026. This will require a factory audit, including the review of the safety process of the products and evidence that documented procedures perforn activities. The ISO 31000 certification is valid for ten years and will be issued if no significant nonconformitics have been found. The CEO is conlident that the company can handle the extra volume with its existing facilities. Still, he is unsure about managing the risk of selling its products to Australia due to exchange rate risk. However, the CDO is enthusiastic about the plan. Still, he is worried about the implications of the foreign expansion on the firm's risk management process and is open to partnerships with Indonesia and Thailand. He has asked you, the firm's most rocently hired risk manager, to help him in the below arcas: Required: (a) Fvaluate Fntrepreneur risks the organisation faces intemally on the strategies to expand the oversea market. (b) Identifies and explains conmon risks the organisation will need to face when penetrating the lndoncsian market. (c) Please explain how to apply the risk management process to manage to Sleep Me Sdn. Bhd's operational risks. Bhd., particulatly in a dynamic business errironment. (d) Recommend alternative risk transfors method to reduee the Sleep Me on overseas expend plan risks
