Key Risk Indicators and Performance Indicators questions For the following two questions please write 250 words for EACH questions, as well as include APA

Key Risk Indicators and Performance Indicators questions For the following two questions please write 250 words for EACH questions, as well as include APA for Each one, too. How do Key Risk Indicators help companies identify emerging risks?How do Key Performance Indicators help companies to manage existing risks? Also, please answer to the following paragraphs (attached) with 100 words each showing substantive responses that extend or provide alternate views. Include APA if possible. Here’s the book: https://drive.google.com/file/d/1e9pZ36T5hmliyvqBS… #1
The Kilgore Custom Milling company had clearly outlined characteristics in the text
usable for a rudimentary strengths, weaknesses, opportunities, and threats (SWOT) analysis.
Among their strengths, the first that can be identified is their primary product. Their
power windows assemblies were described as a commodity due to being comprised of widely
available and simple technology. This meant that their component was easy to quality control
and generally affordable to manufacture. This was connected to their next strength of access
to low-cost manufacturing due to their access to plenty of workers in the area. This good
relationship with the local worker pools gave them another strength of a good rel iable
reputation as a supplier. Finally, the company followed a philosophy put forth by their owner
of “sticking to its knitting” or focusing on engineering and manufacturing in which they knew
best to minimize cost and maximize reliability (Fraser, Simkins, & Narvaez, 2015, pp. 365367)
The company weaknesses were made apparent with the owner being averse to
coordination with foreign suppliers, especially in Asia. The listed concerns of language
barriers, time zone differences, and distance are all valid concerns, but they clearly display a
major weakness for the company. The lack of a foreign affairs specialist or small team limits
their potential greatly with the limit from other markets where materials, labor, and supplies
could be much more competitively priced. Another weakness related to this was their lack of a
coherent solution to their cash flow issues derived from foreign currency volatility in relation
to the Canadian dollar (Fraser et al., pp. 368-371).
There were several opportunities for the company that could have been utilized with a
few more advisory or management positions. A new position to specialize in foreign sales and
customer relations would open the company to plenty of markets, including the Asian markets
for supplies and labor (Fraser et al., p. 368). The expansion into larger markets would open
more contracts, increase revenue, and gain the company more widespread recognition across
international markets. The creation of a proper chief risk officer would also allow for the CFO
to give more focus towards the primary threat to the company involving finances. Also, the
chief financial officer’s strategy to utilize short-term forward contracts would have been an
opportunity to resolve cash flow issues due to foreign exchanges (p. 373-374).
The threats to the company primarily were fixed on foreign capital and its volatile
relation with the Canadian dollar. Other threats included possible more affordable competitors
from overseas, an increasingly strong Canadian dollar cancelling out the stability and
profitability of a contract, and other inflation differentials. What was perhaps the most
concerning threat to the company was the cavalier attitude of decision-makers towards risk
management and lack of a cohesive strategy (Fraser et al., p. 370-374).
References
Fraser, J. R. S., Simkins, B. J., & Narvaez, K. (2015). Implementing enterprise risk
management: Case studies and best practices [Yuzu] (2nd ed.).
#2
It appears that the new contract might be the answer for owner Steve
MacLinden’s plan to liquidate some of his ownership in the company in the next 510 years. To be able to make a good decision or be fully aware of all the factors he
must review the company’s strength, weakness, opportunities, and threats to
identify issues and or opportunities that could affect the new contract results.
Let’s review Kilgore Custom Milling SWOT analysis.
Kilgore Custom Milling Strengths: is their high-quality manufacturing ability,
skilled workers, and geographical placement. Previously in 1990’s the company’s
strength was the weak Canadian dollar that helps win the price-based contract but
now with the Canadian dollar nearing par to the U.S. dollar price-base is no longer
a high strength for the company. (Fraser 363, 364)
Kilgore Custom Milling Weakness: is the short cash flow due to the company’s
low margins and generous payment term to their clients. The exchange rate
fluctuation might also affect cash flow. (Fraser 369)
Kilgore Custom Milling Opportunities: is the possibility of extending the 5 years
contract to 8 years. This contract would give Kilgore the experience to deal with
future large volume contracts.
Kilgore Custom Milling Threats is that all the proceeds need to be made in U.S.
dollars while all the expenses are being done in Canadian dollars, therefore the
exchange rate would be an issue since rates constantly change. Another treat is
that the base profit margin in U.S. dollars will be fixed. The possible changes in
design and production could affect the manufacturing cost thereby affecting the
profitability of the contract. (Fraser 370-371)
It is impossible to make a good risk management decision without reviewing
the company’s strength, weakness, opportunities, and threats, that can help with
the strategic plan to come out with a better hand in a negotiation. Yes, Kilgore
Custom Milling should sign the contract, however, to have a better hand the
company should get a bank line of credit to have access to cash when needed.

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