The chief executive officer (CEO) of Air Canada was reviewing the business's risk management program with all the intention to propose alterations to the strategy. Risk management was a subject all corporate boards were contributing time ever since the financial fall of 2008, and boards had come to understand that hard questions needed to be asked about the wellspring of the risk, how it was divulged, how it was to be accounted for and how it was handled.
The CEO knew he needed to consider the effect of his view of the commodity markets, interest rates, exchange rates along with the market on competitive Air Canada should be with its hedges that were suitable. He decided to start with identifying the most relevant sources of external danger which could materially impact Air Canada's long-term and brief fiscal operation. Then he desired to comprehend how these risks were handled today and how they compared to West Jet, their main competition. Finally, he desired to ascertain what changes ought to be made to either remove the wellspring of risk or better manage any significant threats that stayed.
PUBLICATION DATE: December 14, 2010 PRODUCT #: 910N37-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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