Project – part 1 [third section] The subsidiary highlights, the risk management framework and the multinational financial system of the company
Define the role of the subsidiary within the global supply chain management of the corporation.
Identify a suitable entry mode [risk/control tradeoff and diversification].
Identify WACC and the required rate of return for a subsidiary.
Identify transaction, translation and economic exposure of the subsidiary [and risk factors behind them].
Prepare the proposal for the risk management framework [for the company with the subsidiary recognized in it] with the relevant instruments and participants.
Suggest options for improving the multinational financial system of the company for better value creation for shareholders [e.g., centralization of financial functions, the intercompany fund-flow mechanism, and tax burden optimization].
Grading Rubric:
| Project – part 1 [third section]
Last remaining section on the subsidiary highlights, the risk management framework and the multinational financial system of the company. |
15 total |
| Discuss and apply all concepts listed in the outline of the project instructions for part 1 third section – The subsidiary highlights, the risk management framework and the multinational financial system of the company. | 3 |
| Present comprehensive proposal applying all the concepts specifically to your recommendations for company and proposed subsidiary as needed. | 3 |
| Align your proposal of the coherent and comprehensive risk management framework with the recommendation of the entry mode and implications for the financial strategy for the identified exposure [risk and control, specifying the relevant financial instruments] according to the instructions. | 3 |
| Reassess your selection of the country for a recommended overseas expansion with the required correctly calculated subsidiary WACC based on the application of the International CAPM model. | 3 |
| Include references, supporting material, and a graphic presentation with a compelling and coherent narrative in accordance with the instructions supporting your narrative related to your recommendations for improving the multinational financial system of the company for better value creation for shareholders. | 3 |
