Successful financial management is not only about maximizing the upside potential and delivering better than-average returns on invested capital (ROIC), it is also about identifying and protecting against downside risk.No business is without risk, and no strategic or financial plan can guarantee complete protection.Still, financial managers must work with others in sales, operations, strategy, etc. to develop an understanding of the risks your organization faces.Or, as Jack would say, a "healthy paranoia" of what could go wrong.

This assignment invites you to consider how risk applies to Salesforce.com's business, and to consider methods for mitigating those risks.For this assignment, you are to take on the role of a Risk Management Professional.In conducting your research, you have spent time looking at competitive and economic conditions and are now prepared to deliver your presentation to the Board of Directors.You have been asked to assess the risks presented in the last 10-K report and provide a recommendation to manage those risks.Your proposed solutions must be reasonable.You must present a plan to mitigate downside risk without being so conservative that it unduly impedes the strategic initiatives of the company to drive growth.

Instructions

To prepare for this assignment, read: "May the Force be With You: Wide-Moat Salesforce.com is the Newest Software Empire" analysist report section on "Pulling the Next Growth Lever: PaaS, AI, Internet of Things, and Beyond" (pages 30-33) The 2016 Salesforce.com Annual Report on Risk Factors (pages 12-30) and the Legal Proceedings (pages 30-31)

You should also review the Enterprise Risk Management Checklist to help answer the following questions.

1. Financial Risks a. What are the 2 - 3 most important financial risks of Salesforce.com listed in the Annual Report and in the Morningstar Analyst Report?b. How would you mitigate? 2. External Risks a. What are the 2 - 3 most important external risks of Salesforce.com listed in the Annual Report and in the Morningstar Analyst Report?b. How would you mitigate? 3. Strategic Risks a. What are the 2 - 3 most important strategic risks of Salesforce.com listed in the Annual Report and in the Morningstar Analyst Report?b. How would you mitigate?

Operational Risks a. What are the 2 - 3 most important operational risks of Salesforce.com listed in the Annual Report and in the Morningstar Analyst Report?b. How would you mitigate?