Premium Essay

Art of War and Risk Management

In:

Submitted By mauusalazar
Words 751
Pages 4
Universidad Autónoma de Nuevo León
Facultad de Contaduría Pública y Administración
International Business Program

Finance VI
Assignment:
The Art of War by Sun Tzu & Risk Management

Roberto Mauricio Sandoval Salazar
Group: 8Vi
ID: 1568794
Teacher: Eduardo Treviño

Ciudad Universitaria de Nuevo León, February 28th, 201
The Art of War by Sun Tzu & Risk Management

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.”

This quote comes from a translation of the Art of War by Sun Tzu, written in China in what is estimated to be 512 BC. It could seem farfetched to assert that this ancient quote is appropriate in today’s business environment, but it is actually a good metaphor for the challenges and rewards of enterprise risk management.

To adapt it to the business context, let’s pacify and update the quote by removing battles and enemies: battles will be business challenges and enemies will be risks threatening the success of your operations. Simply put, Sun Tzu posits that knowing your risks is not enough to ensure your success. Knowledge of the processes that may create the risks is also crucial for success. Incidentally, considering risks in a vacuum is also only half a solution.

Obviously, the “succumb in every battle” outcome brought about by ignorance of both the processes and the risks needs no further explanation. It is the “every victory for a defeat” outcome that deserves particular attention. Let’s take a hypothetical situation where you would consider your risks only with no concern for the business processes.

Paying attention to the risks will allow you to put controls in place and thus limit the risks, but

Similar Documents

Premium Essay

The Art of War and Oic

...The Art of War In everything that we do in our life, first thing that we should do is to make plans on how we’re going to do a thing, when will do it, where we will do it, why we’re doing it and what’s the purpose of doing it. Sun Tzu emphasized the importance of positioning in military strategy. The decision to position an army must be based on both objective conditions in the physical environment and the subjective beliefs of other, competitive actors in that environment. He thought that strategy was not planning in the sense of working through an established list, but rather that it requires quick and appropriate responses to changing conditions. Planning works in a controlled environment; but in a changing environment, competing plans collide, creating unexpected situations. In the first chapter of the Art of War talks about laying plans or the calculations. Planning explores the five fundamental factors (the way, seasons, terrain, leadership and management) and seven elements that determine the outcomes of military engagement. By thinking, assessing and comparing these points, a commander can calculate his chances of victory. Habitual deviation from these calculations will ensure failure via improper action. The text stresses that war is a very grave matter for the state and must not be commenced without due consideration. In waging war or the challenge explains how to understand the economy of warfare and how success requires winning decisive engagements quickly. It...

Words: 4471 - Pages: 18

Premium Essay

Sony

...SONY “The name Sony derives from the Latin word sonus meaning sound and the English word sonny-boy – a term used by the Americans in the 1950’s to denote a bright youngster.” Sony was originally called Tokyo Tsushin Kogyo (Tokyo Telecommunications Engineering Company) and was founded by Masaru Ibuka and Akio Morita. (The History of the Sony Corporation) In 1958 they changed their name to Sony Corporation because it was easier to pronounce in any language and according to Ibuka the name emphasizes the company’s founding prospectus of the spirit of freedom and open-mindedness. (Sony Corp. Info) Sony concentrates its business efforts towards achieving corporate social responsibility, community involvement, volunteerism and its environment. Sony Corporation is home based in Tokyo Japan and has global subsidiaries located worldwide in the East Asia, Pan-Asia, North America, Europe, and Latin America. The Sony Corporation of America, located in New York is the United States headquarters for Sony. The businesses that operate from the Sony Corporation of America include Sony Electronics Inc., Sony Mobile Communications Inc., Sony Computer Entertainment America, Sony Network Entertainment Inc., Sony Pictures Entertainment Inc., Sony Music Entertainment, Sony/ATV Music Publishing, and Sony Online Entertainment. (WHO WE ARE) Sony emphasizes employee relations. Sony has made it a priority to develop a healthy relationship with their employees. Morita claimed that a large portion...

Words: 1333 - Pages: 6

Free Essay

Final Paper

...THE ART OF CYBER WAR — ASYMMETRIC PAYOFFS LEAD TO MORE SPENDING ON PROTECTION 151 As Physical Security Converges With IT Security and Becomes More Network-Based, Can Cisco Compete? Cisco recently introduced new video surveillance IP cameras and monitoring software targeted for small businesses. As corporate security technology and services become increasingly network-delivered and database-driven, the physical security market presents a compelling incremental growth opportunity for Cisco that we believe can exceed the billion dollar annual revenue threshold in the next 35 years. The physical security industry has been undergoing a paradigm shift toward convergence, whereby previously disjointed functions of IT security and physical security are experiencing greater formal cooperation. Organizations continue to implement more IP-based video surveillance cameras and building access controls both to upgrade capabilities and to reduce operational costs. Deploying IP-based security upgrades capabilities and reduces operational costs. Through the IP network a security system can assign priority to data and automatically discover new nodes such as IP cameras and control sensors, eliminating the time and effort of manual provisioning. Shifting building access controls from isolated networks to existing IP networks that house data, voice, and video can improve incident detection and assessment, authenticating both the user and device to provide efficient integrity checks. • Video...

Words: 10724 - Pages: 43

Premium Essay

Standard War

...The Art of Standards Wars Carl Shapiro Hal R. Varian S tandards wars—battles for market dominance hetween incompatible technologies—are a fixture of the information age. Based on our study of historical standards wars, we have identified several generic strategies, along with a number of winning tactics, to help companies fighting today's—and tomorrow's—battles. There is no doubt about the significance of standards battles in today's economy. Public attention is currently focused on the Browser War between Microsoft and Netscape (oops, America On-Line). Even as Judge Jackson evaluates the legality of Microsoft's tactics in the Browser War, the Audio and Video Streaming Battle is heating up between Microsoft and RealNetworks over software to deliver audio and video over the Internet. The 56k Modem War of 1997 pitted 3Com against Rockwell and Lucent. Microsoft's Word and Excel have vanquished WordPerfect and Lotus 1-2-3 respectively. Most everyone remembers the Video-Cassette Recorder Duel of the 1980s, in which Matsushita's VHS format triumphed over Sony's Betamax format. However, few recall how Philips's digital compact cassette and Sony's minidisk format both flopped in the early 1990s. This year, it's DVD versus Divx in the battle to replace both VCRs and CDs. Virtually every high-tech company has some role to play in these battles, perhaps as a primary combatant, more likely as a member of a coalition or Prepared for the Cnlifornia Management Review.Jh'is material...

Words: 11753 - Pages: 48

Premium Essay

Risk Management in Justice and Security

...Running Head: RISK MANAGEMENT IN JUSTICE AND SECURITY ORGANIZATIONS Risk Management in Justice and Security Organizations Rita A. Davis University of Phoenix CJA/520 Group ID: MSAS0KCAO6 RJ Schafer September 11, 2009 Risk Management in Justice and Security Organizations Introduction Risk management is essential to the security and well being of any organization. Risk management is crucial in guaranteeing that security controls and spending are proportionate with the actual risks to which the organization is exposed. Following a comprehensive and formal risk management approach requires a sound understanding of the principles of risk. Risk goes beyond the questions of efficiency, technique. This paper will discuss the role of risk management in justice and security organizations What is Risk? “Risk is the uncertainty of financial loss, the variations between actual and expected results, or the probability that a loss has occurred, or will occur… three main categories are personal, property, and liability” ( Broder, p. 3). An organization should perform a risk analysis, which is a, “management tool, the standards for which are determined...

Words: 986 - Pages: 4

Free Essay

Funny

...Consumer and commercial credit management By Robert Hartzell Cole Loan Portfolio Management - OCC of understanding or poor communications between credit management and ... commercial, real estate, consumer, international, and health care). Limits may also be placed on individual loan products within a loan category. For example, although a www.occ.gov/publications/publications-by-type/... S -B R Mind Your Commercial Credit Score Mind Your Commercial Credit Score By Cyndia Zwahlen TSpecial to The Times ... based powerhouse of consumer credit reporting. ... company’s commercial credit data as a risk-management tool. “The information availability, www.experian.com/small_business/pdf/la_times_reprint.pdf Job profile: Credit Risk - Directions If working in retail and commercial banking, the School of Finance ifs Professional Certificate in Banking covers aspects of credit and risk, including modules in the Principles of Lending and Credit and Consumer Credit Risk Management. www.directions.org.uk/media/job_profile_pdf/Credit-Risk.pdf Product Full Service Credit An Integrated, Full-Service ... An Integrated, Full-Service Credit Card Management Solution that Uses a Globally Recognized Processing Platform ... • Consumer • Commercial (business and corporate) • Commercial lines of credit • Installment loans • Co-branded cards www.cardsolutions.fiserv.com/.../Full%20Service%20Credit.pdf Understanding Your Credit Reports - Springboard Debt ... 1 ©2013 Springboard Nonprofit...

Words: 1242 - Pages: 5

Premium Essay

Business Stategy

...Business Strategy Review Questions Chapter 1 The Nature of Strategic Management 1. Distinguish between long-range planning and strategic planning. Long-range planning is used to optimize for tomorrow the trends of today, whereas strategic planning is used to exploit and create new and different opportunities for tomorrow. 2. Compare a company’s strategic plan with a football team’s game plan. A strategic plan is, in essence, a company’s game plan. Just as a football team needs a good game plan to have a chance for success, a company must have a good strategic plan to compete successfully. 3. Describe the three activities that comprise strategy evaluation. The three fundamental strategy-evaluation activities are (1) reviewing external and internal factors that are the bases for current strategies, (2) measuring performance, and (3) taking corrective actions 4. How important do you feel “being adept at adapting” is for business firms? Explain. The strategic-management process is based on the belief that organizations should continually monitor internal and external events and trends so that timely changes can be made as needed. 5. Compare the opossum and turtle to the woolly mammoth and saber tooth tiger in terms of being adept at adapting. Students’ answers will vary, but students are likely to make the argument that those species that are adept at adapting are able to survive, while those that are unable to adapt are more likely to perish...

Words: 2978 - Pages: 12

Free Essay

Supercase

...Strategy and non-technological innovation Assignment for part-time MBA Competitive Strategies, week 6 October 4, 2012   This paper describes the consequences of a non-technical innovation for the strategy of a firm that operates in cultural industry. The example chosen is that of the company Stage Entertainment. In the first part of this paper we will provide a brief history of Stage Entertainment, single out two non-technological innovations and discuss how these innovations have affected the strategic behavious of Stage Entertainment. In the second part we will discuss both the horizontal and vertical processes Stage Entertainment is involved in and argue why one of these should be considered more important to Stage Entertainment’s overall sustainable competitive advantage. Stage Entertainment is the brainchild of the Dutch creative entrepreneur Joop van den Ende (born 1942). Stage Entertainment is the result of a merger of several other entertainment companies owned and run by Van den Ende and was incorporated in 1999. It has seen rapid international expansion and is now active in 9 countries, employing 4000 people. The turnover is €600 million (Nispen, M. van, Jaekele S. and Charrington, J, 2009). Van den Ende describes the strategy of Stage Entertainment as a strategy consisting of three elements (Nispen et al 2009): 1. Venues: programming and managing a network of venues across Europe (i.e. theatres) 2. Productions: presenting a wide range of existing...

Words: 1973 - Pages: 8

Free Essay

Classic Chinese Art Market

...The Classical Chinese Art Fund The Classical Chinese Art Fund FR3208 Arts and Antiques Market: Coursework 2 The Classical Chinese Art Fund Content Page 1. The Classical Chinese Art Fund 1.1. What is the Classical Chinese Art Fund? 1.2. Investment Profile of the Fund 1.3. Rationale: The China Factor 1.4. Investment Approach and Strategies 1.4.1. Growth Strategies 1.4.2. Risk Management Strategies 2. Market Analysis 2.1. Art Segmentation 2.1.1. Chinese Calligraphy 2.1.2. Chinese Paintings 2.2. Major Players 2.3. Demand and Supply Analysis 3. Role of Public Institutions and Regulatory Policies 4. The External Competitive Environment 4.1. Correlation between Chosen Sector and other forms of Investment 4.1.1. General Outlook of the Art Fund 4.1.2. Comparative Analysis of the Fund and Other Art Investment Funds 5. Prospective Investment Portfolio of Art Works 6. Conclusion • Appendix The Classical Chinese Art Fund FR3208 Arts and Antiques Market: Coursework 3 The Classical Chinese Art Fund 1. The Classical Chinese Art Fund 1.1. What is the Classical Chinese Art Fund? The Classical Chinese Art Fund is an investment fund approach that capitalizes on the valuable asset class of Classical Chinese Art, specifically Chinese paintings and calligraphy art pieces. Chinese paintings and calligraphy art works are considered ...

Words: 5169 - Pages: 21

Free Essay

Integration of Faith and Learning

...Joshua had to take can be compared to those that take place in marketing management. Marketing management takes place when an individual takes the necessary steps to achieve desired responses from others in business. Marketing is not only about selling but more importantly it is about knowing your customers so the service you are offering them sells itself. This paper will analyze the scripture Joshua 1:9, as well as the book in comparison to marketing management. We can compare the story when Joshua led the Israelites to the Promised Land to the concept of marketing management. In Joshua 1:9 God says, “"Have I not commanded you? Be strong and courageous. Do not be terrified; do not be discouraged, for the LORD your God will be with you wherever you go." Within the context of marketing management this scripture tells us God wanted Joshua to be strong, and have courage in all that he did and wherever he went. In order to be a good leader in business, or in this case war, a person should hold these characteristics. Joshua had to be strong not just physically but also mentally so he would be able to tackle any challenge that he was faced with the help of God. To have courage requires mental and moral strength to help you make the right decisions. Challenging yourself and overcoming your fears when facing discouragement yet still acting rightly is very important. To have continued success in marketing management you need to have the same qualities that Joshua did when he led the...

Words: 704 - Pages: 3

Premium Essay

Mamanagement as Art

...Art and Science Management is both art and science. It is the art of making people more effective than they would have been without you. The science is in how you do that. There are four basic pillars: plan, organize, direct, and monitor. Make Them More Effective Four workers can make 6 units in an eight-hour shift without a manager. If I hire you to manage them and they still make 6 units a day, what is the benefit to my business of having hired you? On the other hand, if they now make 8 units per day, you, the manager, have value. The same analogy applies to service, or retail, or teaching, or any other kind of work. Can your group handle more customer calls with you than without? Sell higher value merchandise? Impart knowledge more effectively? etc. That is the value of management - making a group of individual more effective. Basic Management Skill #1: Plan Management starts with planning. Good management starts with good planning. And proper prior planning prevents… well, you know the rest of that one. Without a plan you will never succeed. If you happen to make it to the goal, it will have been by luck or chance and is not repeatable. You may make it as a flash-in-the-pan, an overnight sensation, but you will never have the track record of accomplishments of which success is made. Figure out what your goal is (or listen when your boss tells you). Then figure out the best way to get there. What resources do you have? What can you get? Compare strengths and...

Words: 6465 - Pages: 26

Free Essay

A Study on the Effects of Economic War on Organizations from a Leadership and Organizational Behaviour Perspective.

...A STUDY ON THE EFFECTS OF ECONOMIC WAR ON ORGANIZATIONS FROM A LEADERSHIP AND ORGANIZATIONAL BEHAVIOUR PERSPECTIVE. Individual Term Paper Table of Contents I. A. 1. 2. B. 1. 2. II. A. 1. 2. B. 1. 2. C. 1. 2. III. A. B. Background of the topic ............................................................................................................... 3 What is Economic War and what are its practices? .............................................................. 3 Pre-technological Era ........................................................................................................... 3 Technological Era ................................................................................................................. 3 How Competitive Intelligence translates into companies’ life? ............................................ 6 As a tool of Corporate Strategy ........................................................................................... 6 As a part of the Corporate Culture ..................................................................................... 6 Economic War and Corporate Culture .................................................................................. 7 Organizational Leadership....................................................................................................... 7 Where Economic War becomes a problem: advocating ethical behaviour ..................... 7 Where Economic War benefits: crisis leadership ...........

Words: 3585 - Pages: 15

Premium Essay

Corporate Strategy

...business today. You may have observed that the term is increasingly attached to people’s job titles and is used to dignify roles and elevate the status of projects that might otherwise not be regarded as sufficiently important. The dilution of the term strategic is unfortunate because one of the key functions of general managers in all organisations is to engage in strategic thinking. Strategy has a long heritage. The word ‘strategy’ comes from the Greek word for generalship. This betrays the origins of strategy, which lie in the military. Indeed, long before companies were said to have strategies, strategy was a well-developed art within the military sphere. The first writer on strategy is generally held to be the Chinese philosopher, Sun Tzu, whose most popular work, The Art of War, is widely read to this day (Sun Tzu, 2005). In Sun Tzu’s view, the art of generalship was about outmanoeuvring your opponent, convincing them that you were strong in places where you were weak and, conversely, that you were weak in places where you were strong. It was about luring the opposition into a position of weakness before battle was engaged, so that even if you possessed weaker forces, you could overcome the enemy through guile and cunning. Military writers often make a distinction between strategic decisions and tactical decision-making. Activity 1.1 Strategic and tactical decisions Pause here to reflect. Try to identify some differences between strategic and tactical...

Words: 6213 - Pages: 25

Free Essay

Implenting Martial Arts in Dps

...socialization such as physical education are eliminated or severely scaled down. According to an interview with Mrs. Cohen, UAW representative of Hamilton Elementary, $10,000 is required to educate each student, but Detroit Public Schools is receiving $7,000 per student. Although, the program “No Child Left Behind” was enacted to give children equal opportunity despite extraordinary circumstantial, academic and environmental conditions, inner-city students are beginning their educational endeavor discounted and disadvantaged. Educators are frustrated, many parents are uninvolved, and the children are angry and becoming more violent daily. Regular episodes of physical violence plague Detroit Public Schools; thus, a new channel such as Martial Arts needs integration into the school system to redirect instability. The Need School violence has negatively impacted the learning process and has forced the federal and state governments to enact programs for safer schools. According to Kym Worthy, prosecutor of Wayne County, “School violence is an issue that has plagued America for years (Detroit Public Schools).” Therefore, the Wayne County Prosecutor’s Office and the Safe Schools Program implemented a $41.7 million initiative to address school violence, truancy and safety. This program works with 17 schools to establish anti-bullying hotlines, sex offender registries, teen courts, safe school zones and more. In addition, the Wayne county Office of Violence Reduction, in...

Words: 3406 - Pages: 14

Premium Essay

History of Arnis

...HISTORY OF ARNIS The History of Arnis dates back before the colonization of the Spaniards, during those periods it was called Kali and the techniques of the art is focused on bladed weapons fighting. Kali was widely practiced throughout the archipelago; both nobleman and commoners were enthusiast and practitioners of the said art. Also during those days Kali is being taught in a school like training grounds, which was called Bothoan along with military tactics, Alibata (Native Alphabet), and herbal medicines. On the dawn of April 27, 1521 the Portuguese navigator and warrior named Ferdinand Magellan was defeated by a native warrior chief named Lapu-lapu this was the recorded incident which Kali was used against foreign invaders. Forty years after that event, on April of 1564 another warrior navigator from Spain named Miguel De Legaspi landed in Abuyog Leyte Philippines. He was aware of the unfortunate fate of Magellan so took a non-hostile approach to avoid battle with the native. He befriend the warrior chief Malitik, it is at this point he witnessed the deadly fighting skills of the natives through a demo to entertain them. Afterwards he traveled to the nearby island of Sugbo and met another warrior chief named Tupas, he took a non-hostile approach to again avoid confrontation. For the second time he witnessed the formidable fighting techniques of the natives through a demo. Years have passed by Spain was able to colonize the Archipelago thru the use of religion and what...

Words: 1479 - Pages: 6