Identify four different enterprise risks

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Reference no: EM132190045

Question - In the scenario below, identify 4 different Enterprise Risks that you would face if you went through with the transaction. Explain how each risk is involved and how you might mitigate or lower that specific risk.

You have the opportunity to buy 2 million barrels of crude oil from the National Venezuelan Oil Company. The current Brent oil price is $55 per barrel. The Venezuelans are offering a price of $50 per barrel but the oil must be paid for today, October 11th. The oil will be available on October 14th. The terms are "Free on Board" which means you will receive title to the oil when it is loaded on October 14th and you must pay for the transportation. You do not have an immediate buyer in the United States but are willing to purchase the oil at a discount today. It will take 16 days to sail to the port of Galveston, TX. The oil is scheduled to arrive on November 1st. On October 20th, you enter into an agreement to sell the 2 million barrels to Marathon Oil for a price of $54 a barrel. However, they will not take delivery and pay until November 5th.

Reference no: EM132190045

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