About the case study The case study will be prepared in groups and students will be asked to apply the theory covered in class to a real life situation. The topic of the case study is: Identify and discuss four recent risk management disasters (less than 15 years) related to the use of derivatives or financial innovation. Your article should clearly: · describe the steps that led to each disaster, · discuss the financial risk management lessons that can be learned from these disasters, and · examine why these disasters repeat despite the lessons learned from previous disasters. Case studies must be submitted by 25 April 2014 to the office of Mrs S Naidoo, where a record will be kept. Late submissions will be penalized. Your submission must not exceed five (5) typed pages, typed using Times New Roman 12 font, with 1.5 line spacing. All diagrams and graphs must be included in the main body of the text. You may include any relevant appendices you deem necessary. You will be required to make a group presentation of the case study, which will contribute to the case study score. All sources must be properly referenced according to the Harvard referencing method. Each group must have a minimum of seven (7) members and a maximum of ten (10) members.CHINA AVIATION OIL: China Aviation Oil (Singapore) Corporation Ltd (CAO) is the Singapore branch of China Aviation Oil (The Professional Risk Managers, 2008). The company specializes in oil sourcing and trading and monopolized China's jet fuel industry at the time. CAO drew attention to itself in 2005, when then-CEO, Chen Juilin, was involved in a trading scandal that led to losses of an estimated $550 million… mid-paper… There are always traders who are willing to face the risk of imprisonment and/or paying a fine in order to obtain that extra profit. The potential gains are so great that the temptation is often too great to avoid and even pushes some people to contradict their morals and beliefs. END TEXT REFERENCE David M. Currie (2008). Manual of frauds, scams and swindles. USA: CRC Press.Alan N. Peachey (2006). The great financial disasters of our time. 3rd ed. USAPwC. (2005). PwC investigation into oil trading losses. Available: http://www.caosco.com. Last accessed 16 April 2014Deloitte. (2006). China's aviation oil debacle. Available: http://www.deloitte.com/view/en_US/us/Insights/Browse-by-Content-Type/podcasts/7905453ae710e110VgnVCM100000ba42f00aRCRD.htm. Last access April 13-20 2014.