Carmine Chianti is a former chef and successful entrepreneur. She trained at the prestigious Culinary Institute of America, one of the world’s premier culinary schools. While there, Carmine developed a love of boutique wines. After graduating, she started a small, but successful restaurant. With her earnings from the restaurant business, she decided to pursue her true passion – wine. Carmine has since purchased a winery and has set her sights on her most ambitious project yet: an annual wine festival in Sacramento, California. Carmine envisions an evening event that includes riverboats, upscale patrons, and wines from West Coast vineyards. She also pictures food vendors providing light fare and cheeses to pair with the wines. In her view, Sacramento’s location along the Sacramento River in the Central Valley makes the city an ideal spot for a wine festival.
Carmine, realizing that she does not have expertise in Enterprise Risk Management (ERM), hired Cork Consulting to help her understand the risks and opportunities associated with hosting a wine festival. You recently began working for Cork and have been assigned to the risk assessment team. To prepare for today’s client meeting, you reviewed the ERM Framework developed by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and notes in the client file summarizing an initial phone conversation with Carmine. You also reviewed the Risk/Opportunity Summary Form that will be used to describe the event’s possible risks and opportunities in appendix A.