You are Piggy's Chief Risk Officer. Piggy's board of directors has asked you to discuss the risks related to,covering the farming, water, and transportation risks. In particular, The board wants you to discuss the following:

What are the corporateassetsat risk?

What types ofeventscan put the assets at risk?

What are the potential riskmitigationstrategies?

Information:

Piggy, Inc. is in the farming business. Some key facts:

• Piggy owns and operates a large industrial hog farm in coastal North Carolina - in an area just2 feet above sea level.
• Piggy also owns a meat processing plant in South Carolina, and 75 trucks to transport the hogs from the farm to the processing plant.
• Piggy owns 150 refrigerated trucks to distribute pork products from its processing plant to supermarkets and restaurants throughout the South.
• Piggy buys diesel for its fleet of trucks from fuel wholesalers and receives and stores the fuel at a company-owned filling station located next to the South Carolina processing plant. A small team of mechanics based at a garage next to the processing plant is charged with maintaining the Piggy fleet of trucks.
• Piggy uses large amounts of water in its farming operations, both fresh water for its day-to-day hog feeding and water for the hog-waste ponds next to each of its hog barns (see picture below).
  • The waste ponds, which were constructed over 20 years ago, store the 1 billion gallons of hog waste that Piggy's operations produce every year.
  • After anaerobic bacteria break down the waste, Piggy uses the nitrogen-rich dregs as spray fertilizer for the soybean and corn crops that it grows to use as hog feed.
• During heavy rains and hurricanes water from the waste pond can overflow and pollute the area's rivers and lakes. These rivers and lakes are the main sources of fresh water for a 75-square-mile area with a population of 15,000.