UEH-SFLE

Session 2: Tuesday
Class: AV002
Date: 13 September, 2022
Group: 3 WRITING 3
UNIT 6: RISK
GROUP DISCUSSION REPORT
Time: 8AM Venue: B1-702 Date: 13/9/2022

1. Trần Võ Quỳnh Như Group Leader

2. Hứa Ngọc Khánh Vy Secretary
3. Nguyễn Lê Tường Vy Member
4. Đinh Nguyễn Duy Uyên -id-
5. Thạch Tú Vân -id-
6. Phạm Hồ Thiện Ngữ -id-
7. Võ Ngọc Bảo Nhi -id-
8. Phan Thị Yến Nhi -id-
9. Liễu Ngọc Bảo Châu -id-
10.Trần Thị Huỳnh Giao -id-
11. Nguyễn Hồng Kim Cương -id-
12.Trần Thiên Ân -id-

CONTENT

PART 1: OUTPUT TASK

VOCABULARY

A. The verbs in the box are used when talking about risk. Check their
meanings and put them under the appropriate heading in the table
below.

predict meet assess manage

anticipate encounter calculate eliminate
(dự đoán trước) (chạm trán) (tính toán, dự tính) (loại trừ)
 minimise
foresee identify estimate
(giảm đến mức
(nhìn thấy trước) (nhận định) (đánh giá)
tối thiểu)
evaluate reduce
(đánh giá, định giá) (làm giảm)
gauge
spread
(phán đoán, đo
(lan truyền)
lường)
measure prioritise
(đo lường) (ưu tiên)
weigh up
(cân nhắc)

B. Match these sentence halves from newspaper extracts.

1. During the credit crunch, many businesses e/ faced the risk of running out
of money.

Trong giai đoạn khủng hoảng tín dụng, nhiều doanh nghiệp đã đối mặt với
rủi ro cạn kiệt tài chính.

2. We can reduce risk f/ by spreading our lending across more markets.

Chúng ta có thể làm giảm rủi ro bằng cách phân rải các khoản vay sang
nhiều thị trường.

3. Trying to minimise risk g/ is an important part of business strategy

Cố gắng giảm thiểu rủi ro là một phần cốt lõi trong chiến lược kinh doanh

4. It is impossible to d/ eliminate all risks when entering a new market.

Không thể loại bỏ tất cả rủi ro khi xâm nhập vào một thị trường mới.

5. It is difficult to foresee the risks c/ involved in setting up a new business.

Thật khó để đoán trước được những rủi ro liên quan tới việc thành lập một
doanh nghiệp mới

6. Actuaries calculate risk b/ in order to advise insurance companies.

 Các chuyên viên thống kê tính toán rủi ro để đưa ra lời khuyên cho các
công ty bảo hiểm

7. It is important to consider a/ the risks involved when sending staff to work

in dangerous locations.

Thật cần thiết để cân nhắc các rủi ro liên quan khi đưa nhân viên đến làm
việc ở các vùng nguy hiểm

C. These adjectives can be used with the word risk. Complete them with
the missing vowels.
1. slight risk : rủi ro nhỏ, nhẹ

2. great risk : rủi ro lớn

3. minuscule risk : rủi ro rất nhỏ

4. considerable risk : rủi ro đáng kể

5. potential risk : rủi ro tiềm tàng

6. immediate risk : rủi ro trước mắt

7. huge risk : rủi ro lớn

8. remote risk : rủi ro từ xa

9. serious risk : rủi ro nghiêm trọng

10. negligible risk : rủi ro không đáng kể

11. significant risk : rủi ro to lớn, đáng kể

12. imminent risk : rủi to trước mắt, sắp xảy ra

13. substantial risk : rủi ro lớn

14. terrible risk : rủi ro nghiêm trọng

15. tremendous risk : rủi ro to lớn

D. Of the adjectives in Exercise C, which describe:

1. a high level of risk? a low level?

  High: great, considerable, huge, serious, significant, terrible, tremendous,
substantial

Low: slight, remote, minuscule, negligible.

2. a possible future risk? a risk in the very near future?
 Possible future risk: potential
Very near future risk: immediate, imminent
E. Discussion questions:

1. Talk about the types and levels of risks facing your company/
institution

Risks are an inevitable part that most institutions have to deal with. One of
the risks that my company is currently facing is reputational risk. The
company had previously launched a range of products with an offensive
image printed on the wrappings. After that, a few users published it on
social media and the story went viral, causing a wave of negative news
coverage. This bad press damages the company’s reputation significantly
and causes sales to drop. In addition, reputational risk results in loss of
revenue, business partners, and confidence from the board and stakeholders
responsible for our corporate governance. This event also leaves our
company vulnerable to lawsuits and forces us to provide compensation to
those affected.

2. Talk about the types and levels of risks facing a major company/
industry in your country

One of Vietnam’s major industries is banking. The Vietnamese banking

system has faced some extraordinary events, which have had a negative
impact on the prestige of the banking system and perceptions of the
management capacity of SBV and reduced the public’s confidence. In
general, the banking system faces the following risks: risk from non-
performing loans, liquidity risk, currency risk, and risk from connected
lending. Therefore, to reduce the negative impacts of these risks, Vietnam
should combine many resolutions to manage such risks effectively. The
appropriate incentive and legal framework, the improvement of underlying
institutions, and strong corporate governance are deemed prerequisites to
maintain the stability and the development of the financial system.
 3. Talk about the types and levels of risks facing your city/ town/
country:

In my perspective, one of the forms of concern confronting Vietnam is

international business risk. As you are aware, Vietnam's economy is
steadily growing, but hazards are increasing. Many organizations aspire to
execute innovative business ideas and reach the greatest number of target
customers in the context of international integration by expanding their
company activities outside boundaries. However, in addition to benefits
such as taking advantage of preferential legislation, expanding markets, or
supply chains, businesses confront several hazards due to market swings or
cultural differences. Therefore, when establishing a firm abroad, businesses
may face financial, cultural, legal, and commercial risks.

4. Talking about the types and levels of risks facing a foreign country:

Political risk, I believe, is the type of risk that Latin America faces, and
fragmentation is the long-term political challenge in Latin America. Power
has been distributed across numerous organizations for decades, which
does not allow for strong leadership. As a result, the region underperforms
in terms of economic growth. A surge in political risk has a number of
consequences for this country and the businesses that operate within its
borders. While the most visible impact is a drop in equity prices, countries
with higher political risk factors see lower foreign direct investment (FDI),
which can be destabilizing.

LANGUAGE REVIEW:

A. Which of these adverbs strengthen the adjective which follow and

which soften it?

STRENGTHEN SOFTEN
entirely a bit
exceptionally fairly
extremely moderately
fully quite
 highly rather
increasingly reasonably
totally slightly
very somewhat

B. Complete these dialogues with a suitable adverb.

1. 'What were your sales results like last year?'

'Extremely/ Exceptionally/ Very good. I made my targets with two

months to spare.'

'Kết quả bán hàng của bạn năm ngoái như thế nào?'

'Cực kỳ / Đặc biệt / Rất tốt. Tôi đã thực hiện các mục tiêu của mình và có
hai tháng rảnh rỗi. '

2. 'What's your new CEO like?

'Extremely talented and highly/ very intelligent. She brings out the best in
people.'

'Giám đốc điều hành mới của bạn như thế nào?

'Cực kỳ tài năng và rất thông minh. Cô ấy biết phát huy những gì tốt nhất
về giá trị con người.'

3. 'Do you really think we should invest in an increasingly/ exceptionally/

extremely volatile market?'

'Well, first of all we should stay calm and review what we already own.'

'Bạn có thực sự nghĩ rằng chúng ta nên đầu tư vào một thị trường ngày
càng / đặc biệt / cực kỳ biến động không?'

'Chà, trước hết chúng ta nên bình tĩnh và xem lại những gì chúng ta đang
sở hữu.'

4. 'What did you think of the HR Director's presentation?'

 'To be honest, I don't think she was fully/ very prepared. She seemed to be
reading it most of the time.'

'Bạn nghĩ gì về bài thuyết trình của Giám đốc Nhân sự?'

'Thành thật mà nói, tôi không nghĩ rằng cô ấy đã chuẩn bị đầy đủ / rất tốt.
Cô ấy dường như đọc nó hầu hết thời gian.'

5. 'Are you confident that the merger will go ahead?'

' Quite/ Fairly/ Reasonably confident, although we still need a few more
meetings to sort out one or two problems.'

'Bạn có tự tin rằng việc sáp nhập sẽ được tiến hành?'

'Khá tự tin, mặc dù chúng ta vẫn cần một vài cuộc họp nữa để giải quyết
một hoặc hai vấn đề.'

C. In pairs, create short dialogues using some of the phrases below.

fairly accurate

A: Last month’s sales figures seem wrong.

B: I think they’re fairly accurate, but I’ll check if you like.

incredibly well-prepared

A: What do you think about our performance today?

B: You guys did a very great job; it was incredibly well-prepared

logistically.

absolutely awful

A: His behavior earlier on was absolutely awful.

B: I think he had some personal problems with the team members.

severely criticized

A: With this slow progress, they will be severely criticized.

B: I will have a check and boost their productivity.

badly misjudged
 A: I felt small when I learned how I had badly misjudged him.

B: I think he won't mind. You should apologize to him sincerely.

deeply disappointed

A: I was offended by the letter and deeply disappointed that you chose to
print it.

B: Oh, my fault. I'm so sorry, I'll be more careful next time.

slightly damaged

A: I heard there was a fire in town last night. Was there any loss?

B: Fortunately, it was a small fire. Houses were slightly damaged and

people are still safe.

totally unrealistic

A: Have you watched The King: Eternal Monarch?

B: Yeah... It was a great drama to begin with, but then it became totally
unrealistic.

superbly presented

A: This is one of the best restaurants I've ever tried!

B: I totally agree with you. The appetizers, main courses, and desserts are
superbly presented.

thoroughly enjoyed

A: How was your experience at our hotel?

B: We thoroughly enjoyed our time at this hotel and will definitely be back.

PART 2: CASE STUDY

BACKGROUND

Winton Carter Mining (WCM) is a promising Canadian mining company that

plans to go public next year. The company has mining interests in Africa and has
successfully exploited copper, cobalt, and bauxite deposits in several politically
unstable nations. The company's goal is to engage investors willing to take risks
in exchange for enormous earnings.

The current situation in Africa: While conventional metal resources in

Australia, Chile, South Africa, and Russia are no longer abundant enough to
supply demand, news spread that potential unexploited mineral riches lie beneath
some African jungles. However, mining firms are concerned that tapping those
reserves may cause issues because Africa has had several politically unstable
incidents: soldiers killed 157 demonstrators, and Congo is still recovering from
civil war.

Problems: WCM is preparing a prospectus for a possible joint venture partner, a

state-owned mining company called ATZ. Because of the unwell scenario in
Africa, WCM is considering whether to include mining exploitation projects in
African nations in their prospectus.

QUESTIONS:

1. Discuss the risks and hazards that foreign mining companies could
face when exploiting mineral deposits in Africa - for example, political
instability
- Bringing heavy equipment into regions with military and political
instability increases the risk of machinery damage, loss, or theft.

- The likelihood of workers refusing to work in these locations will rise,

resulting in a labor shortage. Workers might also seek wage increases that
surpass the company's budgeted spending.

- Payments for potential accidents and dangers such as worker injury, death,
and machinery damage caused by a mine collapse or adverse weather can
amount to millions of dollars.

- If investors withdraw investment and seek compensation if a deadly

occurrence happens, the company's budget and the image would suffer
greatly.

- Mining may face opposition/intervention from the government and local

people. Workers may get into civil conflicts.

2. What are the advantages and disadvantages of mentioning the African

project in WCM’s prospectus?
 - Advantages:
+ WCM company has a chance to show its growth to future investors.
+ It will put them in another league in the mining industry if they are
successful.
+ It will also raise the company profile and help them to get finance for other
projects.
- Disadvantages:
+ Africa is an unsafe country and unstable condition, so it can frighten future
investors and affect their business.
+ The area is not politically secure (civil war and thousands of people were
recently killed).
+ They don’t want to be held back from buying our shares by investors.

3. What do you think they will decide to do?

They will decide to mention it in their prospectus, once they all agree to sign
this cooperation.

CD2.14. Listen to the discussion between Daniel Habersham, CEO, and

Denise Couture, CFO.

What do they decide to do?

WCM is hesitant to make investments in minerals in Africa due to the issue of

political instability in the country. They haven’t decided yet to sign with ATZ,
so they will refer to the finding report of the New Business Department.

Do you think they made the right decision?

Yes, if they can take such a big risk as a company, they should definitely wait
for the result of the research.

TASK:

1. Each of you has done some research into the mining industry in the
African country. Each of you reads one of the documents and reports
on its contents to the other directors at the meeting.
 2. Then evaluate each risk according to the following scale: very high,
high, medium, low, or risk-free.

Directors Risks Evaluate

The exploitation risk:
Mineral certification schemes are neither
adequately implemented nor the law regarding
child labor and associated hazardous working
conditions. Administrative capacity to ensure
1 Risk - free
compliance is lacking and funding and staffing for
the provincial departments tasked with monitoring
child labor on mining sites are insufficient. Miners
and extractive companies also circumvent the
mineral certification protocols.

The security risk:

The local workforce will be busy or moving from
the local village, and foreigners have to travel by
2 road through the nearest airport, and the nearest Low
airport can take a three, four, or five-hour drive
across the country. As a result, armed terrorism,
extremism, or militias may be a risk.

The health risk:

Carrying out the mining industry somewhat drives
workers and inhabitants to the verge of contracting
skin diseases because of harmful industrial
emissions. Besides, contaminated wells and rivers
3 might make local people lack fresh water for daily Very high
activities. Area waste with debris directly pollutes
the soil which causes difficulty in planting and
breeding. Hence, all these hazards would involve
expensive legal costs and also heavy expenditure
to remedy the issues for our company.

4 The economic risk: Medium

Intensely booming and keeping in the leading top
position among other chemical substances,
 however, the cobalt and bauxite markets may face
some problems as the industrial metals markets
worldwide are volatile. We found that there's a
significant decline in the stock - market prices of
smaller firms. Even more, an international market
such as China is affected and stuck in the
economic downward. This surely makes a big
fluctuation in commodity prices and influences
heavily the investors' purchasing power. Thus, we
are considering whether organizing a general
election throughout the country in six months'
time can be a better resolution.

The financial risk:

Our company's financial problems are quite- high.
There are a few problems. First, the exchange rate
for local currency is fluctuating. Second, we’ll
need to borrow more money to invest in expensive
5 new machinery to exploit the site in addition to High
using the proceeds of the share offer to finance the
site development. Third, is that domestic transport
services are not really reliable so we’ll have to
rely on foreign transportation, which could
increase our cost of mining the sites.

3. Make a final decision as one group whether or not to continue

negotiations with ATZ.

After assessing the problems listed above, we’ve decided to stop continuing
negotiations with ATZ for our company will have to deal with these high-risk
issues as soon as possible.

4. Decide whether to include information about the African project in

your company’s prospectus.

We’ve decided to not include the information about the African project in our
prospectus as this information will twist our consumers’ brand image and will
severely affect our reputation
WRITING

WCM & ATZ BILATERAL NEGOTIATION: RISKS

CONSIDERATION AND RECOMMENDATIONS REPORT

Executive summary

As a dynamic mining company, venture cooperation to expand dimensions and

promote capacity growth is thoroughly important. Our company initially took the
initiative to carry out the negotiation with ATZ. However, after reconsidering, we
decided not to sign the contract because of many significant risks, typically these
5 followings: the exploitation risk, the security risk, the health risk, the economic
risk, and the financial risk. After identifying these problems, we’ll give some
recommendations on how to fix these problems.

Introduction

This report will look at the risk problems that our company is currently facing:

● The health risk

● The economic risk
● The security risk
● The exploitation risk
● The financial risk
● Recommendations to fix these problems

Findings

1. There is an extremely high health risk. Because of industrial pollution, mining

the area could cause skin problems for workers and locals. The water in
surrounding wells is becoming contaminated, so they can no longer be utilized
for drinking water. The nearby soil is being contaminated by waste and debris
from the site. These risks could result in high legal fees for WCM as well as
significant outlays to fix the issues.

2. There is a substantial economic risk. In fact, the markets for cobalt and bauxite
are currently expanding, but the global industrial metals market remains
unstable. Some smaller mining companies have seen declining stock values.
Besides, commodity prices are still being affected by the slowdown in the
 Chinese economy, and in six months, there will be a general election in the
nation.

3. There is also a low risk of security. The local workforce will be busy or
moving from the local village, and foreigners have to travel by road through
the nearest airport, and the nearest airport can take a three, four, or five-hour
drive across the country. As a result, armed terrorism, extremism, or militias
could be a problem.
4. Next is the exploitation risk. Mineral certification schemes are neither
adequately implemented nor the law regarding child labor and associated
hazardous working conditions. Administrative capacity to ensure compliance
is lacking and funding and staffing for the provincial departments tasked with
monitoring child labor on mining sites are insufficient. Miners and extractive
companies also circumvent the mineral certification protocols.
5. Finally is the financial risk. Our company's financial problems is quite- high.
There are a few problems. First, the exchange rate for local currency is
fluctuating. Second, we’ll need to borrow more money to invest in expensive
new machinery to exploit the site in addition to using the proceeds of the share
offer to finance the site development. Third, is that domestic transport services
are not really reliable so we’ll have to rely on foreign transportation, which
could increase our cost of mining the sites.

Conclusion

Due to the detrimental aspects and high diversity of risks, the company decided
not to come to an agreement with ATZ.

Recommendations

1. Based on our risk assessment, in order to reduce skin disorders as much as

possible, we think the corporation should spend more money outfitting
equipment with protective gear for personnel. In addition to that, the
company should install a water-cleaning system so that the staff can have
clean drinking water. We should also improve the healthcare conditions and
labor conditions of the working site so that workers can work safely and
healthily.

2. We should also cooperate with the country’s government to increase the

security of the work site so that the employees can feel that they’re protected
and safe.
 3. Moreover, in regards to the proposed joint venture with ATZ, it's clear that to
avoid a shift in economic growth brought on by politics, the company should
set aside a specific amount of cash to invest in new machinery for the
workers and to hire the foreign transportation service.

4. Furthermore, we should invest some of our money in educating both

technical as well as soft skills these children so that we can hire them in the
future. In conclusion, if we do these things, we’ll get out of the current
situation.

5. Finally, we should not hire children to work on the site and try to raise
people’s awareness about child labor. In addition, our company should point
out any other companies using children to achieve profits to the government.

WCM (Winton Carter Mining)

The board members
13 September

The discussion comes to the end at 10h45’ on the same day.

Secretary Group Leader

Hua Ngoc Khanh Vy Tran Vo Quynh Nhu