Scenario: You are the CRO for the AZ Copper Company (AZCC). …
Scenario: You are the CRO for the AZ Copper Company (AZCC). AZCC is in the business of mining and smelting copper. AZCC then sells the bulk copper to wholesalers, who then sell the copper to various firms that use the copper as an input in the manufacturing process (e.g., appliance manufacturers, copper wire manufacturers, computer hardware manufacturers, automobile manufactures, etc.). AZCC only sells to three wholesalers – two are located in the U.S. and one is located in Mexico. All of the wholesalers purchase copper with payment due within 14 days. Copper mining is also a notoriously dangerous business given the use of heavy equipment, and is environmentally sensitive given the use of chemicals like cyanide for extracting copper used in the mining process. Question: As the CRO, you are asked to build a risk register outlining the various risks faced by AZCC. In doing this, outline 4 risks in the risk register (note – there are certainly more than 4 risks that can be considered in this scenario). You have flexibility in how to develop your risk register, but should at least consider the exposure, classification of risk (e.g., market risk, credit risk, hazard risk etc.), likelihood, and severity. With respect to likelihood and severity, develop your own scale.