XSport is a large and very successful sports equipment retailer based in Laland and listed on the stock exchange. It has grown substantially over the last $25$ years, dominating its core market by offering branded goods at highly competitive prices. It maintains a low$-$cost base by importing over $90\%$ of its inventory from low$-$cost economies and selling them through an extensive network of retail outlets. Five years ago, the board of XSport decided to open many stores in several neighboring countries, because they were in the same customs union and so did not charge any import tariffs. These stores have proved to be a great commercial success and they now contribute over $25\%$ of company revenue and $30\%$ of profit.

However, recently the electorate of Laland voted to leave the customs union which the country had been a member of for nearly $50$ years. The outcome of the referendum has led to economic uncertainty, most notably in the devaluation of the Laland currency. Because of the weakening currency, the cost of paying for imported goods for XSport has increased by nearly $20\%$ since the vote to leave the customs union, and this is squeezing its already tight profit margins. The actual withdrawal from the customs union will take several years to complete.

However, the withdrawal will mean that tariffs will be imposed on all sales made in XSport stores in the neighboring countries as they are remaining members of the customs union, and the goods they sell will be imported from Laland. XSport was originally established by Christian Harper, a charismatic individual who still holds $40\%$ of its shares and is the current chief executive officer. He is quite a dominating man, who exerts disproportionate influence over all board decisions. He did not see the need for the board to establish a dedicated risk committee as the company had grown from strength to strength, so it had no strategy in place to deal with the economic difficulties it faced arising from recent political events.

Required:

a$)$ Identify the FIVE $(5)$ types of risk faced by XSport in the company$$s expansion strategy.

$(10$ marks$)$

b$)$ Discuss the FIVE $(5)$ implications of the risk to XSport as stated in question $($b$)$ above.

$(10$ marks$)$

c$)$ List any FIVE $(5)$ roles of a risk committee within an effective corporate governance framework.

$(5$ marks$)$

d$)$ Briefly explain the importance of risk monitoring in the case above.

$(10$ marks$)$