Slippery Slope

Your client is a transportation company which has been offered a long-term contract to transport oil for an oil rig company. The client does not currently transport oil and does not have suitable ships, so must invest in new ones tailored for this job. You need to help the client decide if it should take this contract by analyzing the associated risks.

Assess the risks related to the contract for the client and recommend whether the client should accept the contract or not.