SECTION C: ANSWER ANY TWO QUESTIONS

QUESTION FOUR

You have just been recently appointed finance executive at a medium sized

company which is into manufacturing of rigid plastic products. The company

has a sizeable fixed asset base and its raw materials are imported. However

due to stiff competition in the particular industry, prices of its products are

highly fluctuating. One of your major tasks in your new role is risk

management. The top management has afforded you an opportunity to present

to them on possible strategies the company should employ to manage its risks.

Make a presentation on only four strategies of risk management the company

may use, clearly spelling out how they may benefit the firm. $(20$ marks$)$