Corporate Risk Management

As discussed in the given information, following types of risks is addressed by the organization.

Financial Bundle Cash flows

All of these risks are associated with specific type of management as follows

Strategic Tactical Operational

For brief information, Strategic levels are responsible for taking decision about the future prospects to be invested in, such as the Board has overviewed an industry and collectively agreed upon chasing their desired profits. This describes How the Corporation would be divided into further Strategic Business Units (SBU). Moving downwards, on to Tactical level, where the information is acquired after decision on selection of the industry. Creation of service to be delivered, and What would be the process in achieving the desired results on investments. For example, A company might look to buy Securities for a fixed period of time and earn their discount to deem their investment OR look to create a product that satisfies the unmet need of market, as in the case of Samsung Smart Phones. Operational level supervises the flaws and unconformity and relevant issues that are faced in the Process of Production, Distribution and Collection of Revenue. We know that there are some External and Internal factors that influence the smooth growth of an organization. In order to avoid those fluctuations and provide a smooth platform to Operations at a SBU under a Corporation, we use a Risk Management Process. Survival is the key in most difficult scenarios for an organization and a Risk Management Process is a just guide to survival. In the modern era of business, when an organization thrives for operational excellence, they look to benchmark market leaders in the industry to overcome their flaws ultimately reducing their Operational Risk. Strategic Business Management provides a more clear perspective on managing the organization with respect to unforeseen and possible threats either internal or external. We can study Risks by Environmental Scanning and getting information about past, present and future of the organization, in the relative industry. It provides healthy insights to gain a competitive edge on other competitors and gain leverage on the customers expectations too The biggest challenge of corporate risk management is those risks that are akin to market risk but arent market risk. An oil company holds oil reserves. Their value fluctuates with the market price of oil, but

what does this mean? Oil reserves dont have a market value. As another example, suppose a chain of restaurants is thriving. Its restaurants are valuable, but it is impossible to assign them market values. Something that doesnt have a market value doesnt pose market risk. This is almost a repetition. Such risks are business risks as opposed to market risks. Risks vary from one corporation to the next, depending on such factors as size, industry, diversity of business lines, sources of capital, etc. Practices that are appropriate for one corporation are inappropriate for another. For this reason, corporate risk management is a more elusive notion than is financial risk management. It encompasses a variety of techniques drawn from both financial risk management and asset liability management. The challenge for corporations is selecting from these, adapting techniques to suit their own needs. The most suitable way, practiced at Justin and Early Engineering is to integrate all these ascertained risks into one risk register, which are addressed by a comprehensive Risk Management Program. This program calculates the total risk, under the breakdown of these three above mentioned levels. Experts are divided into team for looking up as a monitor and mentor at the same time for probable interruptions in the process, then study the causes for their occurrence, so they can be eliminated to ensure the smoothness of business process. At different levels, Portfolios (SBU) are run by different people, but governed by the same body. These personnel have to focus in one direction that is the companys vision to move one step nearer to the destination. The cash flows are constantly updated with facts from finance departments and checked in for errors, this helps in reducing mismatches, repetitions, overstated or understated values that may cause confusions at the end of an accounting period. This facilitates in reducing time costs in reconciling and correcting the errors associated to Financial Statements. Precisely, risks are those hurdles in the way of an athlete, which he has to jump over, tackle upon, survive and avoid for getting to the finish line. The athlete is taken as SBU, his physical trainer as Operational Manager, and yes the Corporation level belongs to Coach. Concluding on the point that, Justin and Early engineering have to cope with whatever comes their way in order to meet the expectations of their stakeholders, that they are going along nicely to achieve by implementing their comprehensive risk management system. The supervision and monitoring of the personnel adds into their possibilities of doing so. For other organizations, lacking behind in the race to finish line, they should also replicate their process and benchmark their management of risks to avoid interruptions in the smooth running of business that would help them in getting more profitable.

Sources
Guldimann, Till (1994). Introduction, RiskMetrics Technical Document, second edition. Morgan Guarantee: New York.

Guldimann, Till (1994). Introduction, RiskMetrics Technical Document, second edition. Morgan Guarantee: New York.

 Guldimann, Till (1994). Introduction, Risk Metrics Technical Document, second edition. Morgan
Guldimann, Till (1994). Introduction, RiskMetrics Technical Document, second edition. Morgan Guarantee: New York

Guarantee: New York.

Enterprise Risk Management Committee (May 2003). Overview of Enterprise

Risk Management (PDF).

Moteff, John (2005). Risk Management and Critical Infrastructure Protection:

Assessing, Integrating, and Managing Threats, Vulnerabilities and Consequences (Report). Washington DC: Congressional Research Service.