**The Company:** Universal Traders Limited (UTL) is engaged in procuring, marketing, and distributing Consumer Packaged Goods (CPG). Their product range includes packaged foods and beverages, cosmetics, toiletries etc., consumed mainly by household consumers. UTL has retail outlets throughout the State of Tamil Nadu. **Availability of products:** The number of products consumed are increasing day by day as well as the customers' needs. The tendency of the present-day customer is to get the products immediately, the moment they are shown in a television advertisement or other online media. Either the consumer would visit a store to get them, or they would resort to online buying. Even a product that is available in the market for a long time, consumers prefer to buy it online. This has placed a tremendous challenge to companies like UTL. Timely availability, coupled with competitive pricing are the main remedies to the challenge. **Supply Chain Risk Management:** It is all the more necessary for UTL to revisit the aspects of Supply chain mechanism and to strengthen the same and the management realised the need to study and assess the Supply Chain Risk Management. It is the process of identifying, assessing, and evaluating and taking mitigation efforts to counter the risks which have the propensity to impact the delivery of goods and services in a supply chain process. Natural disasters, political unrests, labour problems, breakdown of transport vehicles etc., are some common risks which could impact supply chains. It is imperative to maintain and meticulously follow proper policies and procedures for all the processes followed. Constant and proactive lookout is necessary to address the gaps in the processes besides continuous monitoring mechanism of the control structure. The presence of any weakness could undermine the entire supply chain. **Loan for Expansion:** The Managing Director (MD) requested the Chief Financial Officer (CFO), Ms. Tiya, to study the various aspects of expansion of the present operations of UTL. After completing the task, Ms. Tiya arrived at a figure of ₹7 Crores which might be needed for the expansion. She felt that the same may be obtained as a long-term loan from its banker, ABC Bank Limited (ABCBL). Ms. Tiya approached ABCBL and negotiated the interest rates and other charges on the loan. Ms. Tiya was insistent for reduction in interest rates and other charges and the negotiations are taking longer time with ABCBL. In this scenario, ABCBL concluded that there is possibility that the pay off by UTL will be late. **Challenges faced:** In order to ensure the continuity of the business of UTL, the Risk Manager, Mr. Das, after studying the occurrence of stress scenarios of similar companies in the industry, concluded that such stress scenarios happened in the industry once or twice in a ten-year time period. The Operations Manager, Mr. Raj, narrated a few problems found with some of their staff to the Human Resources (HR) Manager, such as, not having sufficient experience as required by the job required to be performed, indulging in theft of materials from the warehouse of the company and not being punctual in attending work on many days. UTL is having an investment portfolio totalling to ₹ 5 Crores. Ms. Tiya and the Chief Executive Officer (CEO) were discussing on the right kind of tool to employ, in order to optimise the return on investments, Ms. Tiya is opting for using Value at Risk (VaR) methods, whereas the CEO advocated for employing Coherent Risk Measures to achieve the results. Ms. Tiya clarified to the CEO that as far as UTL 's transactions are concerned, VaR would be a better option. Ms. Tiya explained the few drawbacks of VaR to the CEO to be borne in mind. UTL is considering hedging the interest rate risk. It wants to follow the traditional method for the same. The finance manager was asked to suggest such a suitable method. The IT Manager, Mr. Suresh, is given the exercise of conducting a risk evaluation for the project of revamping the existing information system (IS) of UTL. With regard to the above project, Mr. Suresh comes out with the following proposal: Investment in IS ₹ (in crores) Total risk of failure (in %) Original Investment 5 30 Additional Investment 2 20 The Logistics Manager, Mr. Pavan, is considering the possibility of outsourcing the logistics operations. He believes that if such functions are contracted out, UTL can attribute the delay in deliveries to the logistics operator and thereby make them responsible and avoid negative publicity to UTL. **Audit of Transactions:** An auditor, Mr. Arvind was appointed to go through the past two years' transactions. He was very much careful in selecting the transactions for testing as well as applying the audit procedures, as they may be subject to sampling as well as non-sampling risk. He conducted a test of controls on the transactions by applying sampling techniques and found out few errors and omissions. He informed the management that these errors and omissions could have been avoided, had there been strong internal controls. **Other Information:** In respect of a transaction involving foreign exchange, the Accountant, Mr. Gupta, gathered the following information from ABCBL. On Sep 05, 2022, the Bank quotes the following: Spot exchange Rate (US $ 1) INR 79.2221 79.5258 2 months' swap points 60 80 3 months' swap points 150 178 In a spot transaction, delivery is made after 5 days. Based on the above, you are requested to answer the following questions: Multiple Choice Questions Choose the most appropriate answer from the given options.