Reference no: EM132571435

You are employed as the internal auditor of Cascadia Chemicals Inc., a company that operates in Quebec and the northwestern United States as a manufacturer and distributor of chemicals to the pulp and paper industry in that area. Your company has been in business for 40 years and has a 75% share of its market.

The board of directors has recently approved a proposal from management to enter into a joint venture with a business in Colombia to manufacture and market the company's chemical products in Latin America. Initially, products will be supplied from Canada, but manufacturing facilities will eventually be built in Colombia. This will be the first venture of its kind for Cascadia.

You have been approached by the president of Cascadia, Mark Downing, who has read with interest of the increased involvement of internal auditors in the subject of business risk. He has asked you to consider the risks faced by the company in its new venture. Specifically, he would like you to identify the specific risks that the company may face in the following areas:

a. technical expertise

b. reputation

c. financial reporting

d. government regulations

e. marketing

f. financial management and treasury

Required

Question 1: Identify the key risks under each of the areas named by the president. For each risk, indicate briefly how the risk may be avoided, transferred, shared, or controlled