...Contents 1. Introduction 3 1.1. Examination of Role of Risk Management to Identify, Analyze and Control the Risk 4 1.2. Structures and Activities of Risk Management Functions 5 1.3. Analysis of Main Types of Risk Facing Businesses 6 1.4. Examination of The Key Operations which Expose Businesses to Risk 7 1.5. Appraisal of Different Types of Security Risks 7 1.6. Business Areas Which are Particularly Vulnerable to Security Breaches and Fraud 8 2. 2nd Task 8 2.1. How Various Methods and Techniques are used to Measure and Assess Risk 8 2.2. Analysis of Actions to Manage Risk by Businesses 9 2.3. Identification of Advantages and Disadvantages of a business having Risk Management System 10 2.4. Analysis of Role and Responsibilities of Manager for overall Accountability of Risk Management 11 2.5. Critical Evaluation of Role of Monitoring and Budgeting in Risk Management 12 3. 3rd Task 13 3.1. Impact of External Influences on Managing Operational Risk 13 3.2. Role of Integrated Risk Management for Reducing Impact of External Factors 14 3.3. Analysis upon the Relationship between Risk and Marketing Strategy 15 3.4. Business Areas which are Influenced by Marketing Risk 15 3.5. Use of Benchmarking to Reduce Risk 16 4. 4th Task 17 4.1. Analysis of Link between Crises Management and Contingency Planning 17 4.2. Why Business Continuity Breaks 18 4.3. Evaluation of the Contribution...
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...Executive Summary 3 Phase 1: The Strategic Context 4 1 Business Needs and Desired Outcomes 4 1.1 Strategic Environment 4 1.1.1 Organizational Overview 4 1.1.2 Business Need 4 1.1.3 Drivers for Change 4 1.1.4 Business Outcomes 4 1.2 Strategic Fit 4 1.3 Detailed Description of the Business Need 5 1.3.1 Problem/Opportunity Statement 5 1.3.2 Prioritized Requirements (High Level) 5 1.3.3 Assumptions 5 1.3.4 Constraints 5 1.3.5 Dependencies 5 1.4 Scope 5 1.4.1 Boundaries 5 1.4.2 Stakeholder Analysis 5 Phase 2: Analysis and Recommendation 7 2 Preliminary Options Analysis 7 2.1 Evaluation Criteria 7 2.2 List the Possible Options 7 2.2.1 The Status Quo 7 2.2.2 Describing the Option 7 2.3 Screening of Options 7 2.4 Rationale for Discounted and Viable Options 7 3 Viable Options 9 3.1 Alignment 9 3.1.1 Strategic Alignment 9 3.1.2 Alignment with Desired Business Outcomes 9 3.2 Costs 9 3.3 Cost-Benefit Analysis 9 3.4 Implementation and Capacity Considerations of Viable Options 9 3.4.1 Contracting and Procurement 9 3.4.2 Schedule and Approach 9 3.4.3 Impact 10 3.4.4 Capacity 10 3.5 Risk 10 3.5.1 Option Risk Summary 10 3.5.2 Risk Register 10 3.6 Benchmark 10 3.7 Policy and Standard Considerations 10 3.8 Advantages and Disadvantages 11 4 Justification and Recommendation 12 4.1 Comparison Summary 12 4.2 The Preferred Option 12 4.2.1 Recommendation 12 4.2.2 Deciding Factors 12 4.2.3 Costs 12 4.2.4 Risks 12 4.2.5 Implementation Plan 12 Phase...
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...Country/Political Risk faced by this organization and describe its successes and failures. Having established itself as a strong financial leader within the financing sector of Spain, Santander has shown great strides in the overall growth towards becoming a worldly recognized leader concerning their involvement in finance on a global scale. The globalization process demonstrated by Santander is of grand success in comparison to many financial business endeavors throughout a multitude of various demographics, lifestyle and economic sectors. It is because of this extreme diversity within the business structure that Santander faces many obstacles in their decision making process. The level of difficulty in understanding each financial and economic sector relative to the various outreaches of each individual company demonstrates the need for strong initiative and research in assessing the components of each economy. Of these various concerns, once studied and researched, will provide answers to the questions presented within the case study. The decision of continuing to consolidate or expand and venture into new financial markets will be based on current performers within each market with respect to the competition branches within each individual segment. Understanding the influence of political powers within each business sector will allow the decision of flow of functions within the organization to improve current organizational structuring methods. Lastly, understanding the risk within...
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...Chapter 1 Summary * A strategy is a set of related actions that managers take to increase their company’s performance goals. * The major goal of companies is to maximize the returns that shareholders receive from holding share in the company. To maximize shareholder value, managers must pursue strategies that result in high and sustained profitability and also in profit growth. * The profitability of a company can be measured by the return that it makes on the capital invested in the enterprise. The profit growth of a company can be measured by the growth in earnings per share. Profitability and profit growth are determined by the strategies mangers adopt. * A company has a competitive advantage over its rivals when it is more profitable than the average for all firms in its industry. It has a sustained competitive advantage when it is able to maintain above-average profitability over a number of years. In general, a company with a competitive advantage will grow its profits more rapidly than its rivals. * General managers are responsible for the overall performance of the organization, or for one of its major self-contained divisions. Their overriding strategic concern is for the health of the total organization under their direction. * Functional managers are responsible for a particular business function or operation. Although they lack general management responsibilities, they play a very important strategic role. * Formal strategic planning models stress...
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...Risk Management for Jingdong mall Background of Jingdong mall Jingdong mall is a Chinese electronic commerce company headquartered in BEIJING, and it is one of the largest B2C online retailers in China by transaction volume. Jingdong mall has been working to provide customers the world beyond reality-experience with pleasant and delightful online shopping. By means of luxuriant content, user-friendly website (www.jd.com) and mobile clients, it offers abundant commodity with rivalrous price and excellent quality, on the other hand, their services enjoy fast and reliable way, including flexible payment at any circumstance before headed to consumers. In addition, Jingdong mall also offer third-party sellers with online-selling platform carriers a series of value added services like logistics information, etc. Products of Jingdong mall JD provides abundant commodity, type includes computers, mobile phones and other digital products, home appliances, auto parts, clothing and footwear, luxury goods (such as: handbags , watches and jewelry) , home and household articles, cosmetics and other personal care things, food and nutrition , books, electronic books , music, movies and other media products , baby articles and toys, sports and fitness equipment, as well as virtual goods ( such as: domestic air tickets , hotel reservations , etc.). Process of Jingdong mall’s electronic commerce Order received Check availability Article available Procurement no Ship article ...
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...organization can take into account to consider outsourcing their IT functions. They can range from cost cutting measures, and improving IT services, to have the opportunity to tap into professionals with a higher level of expertise, that among other things can provide the rapid deployment of IT projects, or to have the IT team concentrate on projects that can provide the organization with a higher and faster Return On Investments or ROI. As there are many good reasons for outsourcing, there are also drawbacks that in the end could have a detrimental effect on the organization. Therefore, there are many issues to consider. This paper will discuss various aspects of outsourcing IT function such as, what are some of the determining factors that may lead an organization to outsource or not their IT functions, risks and benefits associated with outsourcing, where do the costs originate in an outsourcing agreement, and what are some examples of the dollar impacts which might be expected, what are the implications to the business organizational structure by using an outsourced IT department as well as the potential personnel issues which may arise. Determining Factors to Outsource or not to Outsource According to an article written in 2005 by Thomas A. Faulhaber for Business Forum Online, he clearly points out that “outsourcing is the strategic use of outside resources...
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...Plan for enterprise risk management: The organization’s that is chosen is Wal-mart and the current risk management policies, procedures and processes and comment on the strengths and weaknesses of these arrangements The visible management commitment is an important factor in case of the establishment of risk related factors. The risk management is identified from the performance and the helps to lead through the advantage. The existing information controls includes strengths of system. There is high level of dependence in the business that is the major weakness of the business. (Qgcio.qld.gov.au, 2002) The scope for risk management process that will conduct for the risk is as follows– To understand the framework of the risk management, the scope will be to define and to identify the objectives of risk management processes and activities. This establishes the proper scope of the project and also it helps to include the specific activities. (Enisa.europa.eu, 2012) The impact that each of the following has on the organization’s approach to risk management: Political environment: The political environment includes the risk with the perspectives of governmental laws, rules and regulations. The funding related issues also create the approach to risk management. Economic climate: The economic factors include employment, income, inflation, interest rates, wealth and productivity, the buying behavior of the consumers and also the institutions creates the economic factors....
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...company was able to reduce inventory and lead times to corner the market. In the following analysis, I will explain how the company used visibility to ensure an effective and efficient global supply chain, review the risks associated with real time demand systems, describe categories of regulatory and legal requirements for ensuring compliance in a global supply chain, describe implications of the Foreign Corrupt Practices Act in global operations, assess strategies for ensuring adherence to ethical labor practices, analyze the use of supply chain visibility to ensure equal treatment of partners, and evaluate the role of ethics and regulations in an effective and efficient supply chain. Seagate’s use of visibility to ensure an effective and efficient global operations and supply chain process Seagate characterized it supply chain as a real time demand forecasting process by removing the lag time between supply chain lead time and customer acknowledgement. Seagate has many customers all around the globe, at the same time there are customer as well have different locations within the same firm where the products have to be shipped. Seagate manages with a real time/just in time supply chain process, removing the inventory holding and carrying cost associated with a forecasting system. They have managed to arrange a holistic supply chain model on the base of technologically systems which integrate both suppliers as well as...
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...1 CHAPTER 1 INTRODUCTION Risk management structure should be well thought-out, as well as a cultural fit and sustainable. (Smiechewicz, 2001) Uncertainty is not measurable. Risk is. - Frank Knight, Risk, Uncertainty and Profit (1921) 1.1 Introduction Success in business, to a certain degree, requires owners and managers to take calculated risks. The most successful business is usually managed by people who know when to push forward and when to pull back, when to buy and when to sell, when to stand firm and when to compromise. The successful company is managed by people who understand what risk in business is, and how this risk should be managed and mitigated. Risk is an undeniable reality of doing business today, whether domestically or globally. A successful entrepreneur does not fear risk, but strives to understand it, to manage it, even to take advantage of it. As risk management tools and techniques become more and more complex, however, companies require the services of a Risk Management specialist. A growing specialty in this field, globally, is that of international accounting risk management. International accounting professionals can contribute to the 2 success of their companies must have a strong grasp of financial risk management techniques for multinational and multilateral business transactions of great complexity. Unfortunately, as the world of business becomes increasingly borderless, risk management becomes, likewise, borderless, and...
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...mostly at the local level, the most attractive markets are in Mexico City, Guadalajara, and Monterrey. JBGE is one of the few competitors in its industry of a considerable size, the market of each one of these companies is still not as large as JBGE’s market. 2. - Potential new entrance (medium) The high profit margins and the weak rivalry make civil construction insurance sector industry attract new entrants. Entry barriers, in terms of investment or technical knowledge, are low for the industry, but in terms of administrative and technological capacity, relationships with the insurance sector, and know-how on the peculiarities within the market are considerable barriers. 3. - Buyer power (strong) The market growth each year and the good deal with insurance companies make a high level of buyer power for these businesses. 4. - Industries offering substitutes product (weak) The substitute levels are weak because JBGE was the first business of this kind in the region and it has held special relevance and visibility for insurance companies. 5. - Supplier power (strong) Supplier power is strong because the company have a strong dependence with supplier, the company have only 52 full time employees and the team leaders contract squads in the outside locations where JBGE operates. Through these team leaders, JBGE works with around 150 contractors in all its different locations. 2. Identify the type of generic strategy that JBGE appears to...
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...Risk mitigation for business resilience White paper A comprehensive, best-practices approach to business resilience and risk mitigation. September 2007 A comprehensive, best-practices approach to business resilience and risk mitigation. Contents 2 Overview: Why traditional risk mitigation plans fail 3 Build a comprehensive strategy for risk mitigation 3 Identifying types of risk 4 Business-driven risk 4 Data-driven risk 5 Event-driven risk 5 Risk reach and range: understanding risk and its impacts 6 elating value to risk: quantifying R impact 7 Resilience frameworks: analyzing current risk environments 8 Resilience strategy: designing a blueprint for risk mitigation 9 Achieve optimum business resilience with IBM 11 Look to a market leader in business resilience 11 For more information 11 About IBM solutions for enabling IT governance and risk management Overview: Why traditional risk mitigation plans fail A successful governance and risk mitigation strategy must operate at multiple levels with broad coverage. Risk mitigation plans at many organizations fall short simply because they are not comprehensive and fail to take into account the reach and range of all the risks that they actually face. Often this occurs when organizations only focus on specific areas of risk categories, only plan for certain types of risk or don’t understand all the different areas in their organization that particular...
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...RO T E U L D GE · r & Fr a nci s G ro Risk factors in enterprise-wide/ERP projects M ARY SUM NER School of Business, Southern Illinois University, Campus Box 1106, Edwardsville, IL 62026, USA The purpose of this study was to identify the risk factors in implementing traditional management information systems projects, describe the risk factors associated with enterprise-wide/ERP (enterprise resource planning) projects and identify the risk factors in ERP projects which are unique to these projects. Some of the unique challenges in managing enterprise-wide projects which were highlighted through the ndings included the challenge of re-engineering business processes to ‘ t’ the process which the ERP software supports, investment in recruiting and reskilling technology professionals, the challenge of using external consultants and integrating their application-speci c knowledge and technical expertise with existing teams, the risk of technological bottlenecks through client-server implementation and the challenge of recruiting and retaining business analysts who combine technology and business skills. Introduction In the past few years many organizations have initiated enterprise-wide/ERP (enterprise resource planning) projects using such packages as SAP, Peoplesoft and Oracle. These projects often represent the single largest investment in an information systems (IS) project in the histories of these companies and, in many cases, the largest single investment...
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...Lab 2 - Align Risks, Threats, and Vulnerabilities to COBIT PO9 Risk Mgmt. Controls Part 1 4. Discuss the primary goal of the COBIT v4.1 framework. Provide a basic description of cobit. * The purpose of Control Objectives for Information and related Technology (COBIT) is to provide management and business process owners with an information technology (IT) governance model that helps in delivering value from IT and understanding and managing the risks associated with IT. COBIT helps bridge the gaps amongst business requirements, control needs and technical issues. It is a control model to meet the needs of IT governance and ensure the integrity of information and information systems. 5. Explain the major objective of the Control area (COBIT 4.1 Controls Collaboration link on the left side of the COBIT website) * “The COBIT Controls area within ISACA's Knowledge Center promotes collaboration and sharing of information, solutions and experience among COBIT users.” 6. From the COBIT Domains and Control Objectives section, list each of the types of control objectives and briefly describe them based on the descriptions on the website. * Plan and Organize – “This domain covers strategy and tactics, and concerns the identification of the way IT can best contribute to the achievement of the business objectives. The realization of the strategic vision needs to be planned, communicated and managed for different perspectives. A proper organization as well as technological...
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...framework outline the challenges/risks faced by Cisco in introducing a new product. 3 Question 2. What are the general operational / supply chain issues in using a Chinese supplier 6 Question 3. Identify and briefly explain the specific risks / rewards in selecting Foxconn as a key subcontractor. 9 Question 4. Recommend, detail and justify operational and supply chain strategies for Cisco. 11 Question 5. Research and reference Cisco's subsequent actions using publically available material and comment briefly 13 Appendices 16 Appendix A 16 Appendix B 17 Appendix C 18 References 20 Project Diary: 26 Table of Figures Figure 2.1 Chinese Traditional Values (Jin et al., 2013). 17 Figure 2.2 Global Rate, Labour and Freight (Kumar et al., 2009). 18 Figure 4.1 Competitive Advantages. (Christopher, M., & Peck, H, 2003)…………...….….....18 Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. Erhun, Gonclaves and Hopman (2007) state that risk during new product introduction (NPI) process can stem from either an internal or external source, and more critically from either a supply or a demand prospective. The challenge for Cisco during the NPI phase is to utilise an operational framework to clearly define where in the supply chain the risk is and what strategies can be applied to reduce these risks. Various operational frameworks are used to identify risks within the supply chain. Two...
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...MANAGEMENT: GMN269. JULY 4 2015. DIFFERENTIATION STRATEGY VERSUS COST-LEADERSHIP STRATEGY A VIEW OF ASSOCIATED RISK. DIFFERENTIATION STRATEGY VERSUS COST-LEADERSHIP STRATEGY A VIEW OF ASSOCIATED RISK. ACKNOWLEDGEMENTS. Any accomplishment requires work and effort of many people. This project is no different. I am grateful to God without whom life would not be possible. And also the Delta State government for making this vision possible. OBJECTIVE OF PAPER The purpose of this paper is show the risks concerned with the differentiation strategy and compare them to those of the cost-leadership strategy. The amount of profit made by a firm is determined by the attractiveness of the industry in which it operates and the quality of its opposition within the industry. Even though an industry may have below average profitability, a firm that is optimally positioned can generate superior returns. Michael Porter argued that if a firm leverages its strengths in either a narrow or broad scope, three generic strategies result; cost-leadership, differentiation, and focus strategies. He said that these strategies are not firm or industry dependent. (Porter, 1999-2010). What is differentiation Strategy Differentiation strategy can be seen as a strategy employed by businesses or firms to increase the...
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