1. You are the Chief Executive Officer of a large Philippine multinational company operating in theenergy sector. Your company has operations in 5 different countries, some of which aredeveloping economies, and it has raised debt finance, as well as equity finance, in 2 of thesecountries. You are aware that there have been protests from environmental lobby groups inseveral areas regarding oil pipelines. There have also been demonstrations about the impact ofoperations on local communities. Your company has an internal audit committee, an auditcommittee, and a reasonably well-developed system of internal control. However, the board hasdecided that perhaps it should form a new committee, a 'risk committee', which will deal withrisk management and internal control specifically.

Prepare a briefing paper which summarizes the main risks facing the business at present, and the relative importance of these risks to the business, to highlight where the primary exposures are likely to be.