StudentShare solutions
Triangle menu

Corprate risk managment - Essay Example

Nobody downloaded yet

Extract of sample
Corprate risk managment

Risks can be beneficial if properly managed (Merkhofer, 1987). Fate favors the bold; those who dare to dream and take calculated risks. Without risks, there are no rewards. Every decision in an enterprise is based on risks. The decision to manufacture more goods in anticipation of a sales pitch is a risk, so is the decision to stock particular goods. There is no guarantee that there would-be customers or that the speculative effort will be rewarded, yet enterprises do take these risks and are rewarded for the same. Risk management is an integral part of doing business in any organization. It can be implemented at both the strategic and operational levels of the business. This necessitates the cultivation of a risk culture. There is no universally accepted risk culture or practices; this may be because different industries face different risks (Focardi and Jonas, 1998). Even if the organizations are in the same industry each organization faces their own unique risks, which will need a unique way of managing. However, the basic risk culture activities include scenario analysis; economic capital modeling and risk control self-assessments. Scenario analysis is the determination of the particular context within which the risk occurs; economic capital modeling involves making financial projections based on certain risk management decisions while risk control self-assessment involves the monitoring of the risks with the view of establishing whether the decision is still viable. The various types of risks include hazard risks, financial risks, operational risks and strategic risks. The paper will examine the decisions that a management can make when faced with a risk (Bouham, 2008). a) Key Risk Management Decisions Risk management is a cost-benefit analysis strategy (Kropp and Schoffran, 2007). Most of the risks usually externally originate threats. According to the SWOT analysis model, any factors that are internal and positives are the strengths of that organization, if they are internal and negative, then they are the weaknesses of that organization, if the factors are external and positive, they are considered to be opportunities that the organization can explore to its benefit while if they are external and negative, they are the threats to the company, and these are the factors that pose as risks to the organization. The costs of decisions to be made are juxtaposed against the benefits expected and the relevant actions can then be taken (Gabardi and Tichy, 2013). There are generally five key risk management decisions. These decisions depend on their impact and probability of happening. The first management decision may be to totally avoid taking the risks. This means that the organization drops the activity that has the probability of that risk arising; it infers total exit, for instance, if it is manufacturing company, then it stops manufacturing and winds up the business. The second decision is risk reduction. This involves making strategic decisions that will reduce the likelihood and or magnitude of the risk. The third decision may be to take alternative action by considering other viable options that minimize the risk. The fourth decision is to share the risk by taking insurance cover. Most companies prefer this decision, but it does not work in certain situations. The last decision may be to accept the risk when it occurs and enjoys all its benefits and incur all its ...Show more


Corporate Risk Management Name: Course: Professor: Institution: City and State: Date: Corporate Risk Management Risk management is the process of maximizing opportunities while mitigating any adverse effects that come with the opportunity. It is the process of determining the likelihood of an event happening and its magnitude (Crouhy, Galai and Mark, 2006)…
Author : cristobal84
Corprate risk managment
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Corprate risk managment"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Thus, sustainability concentrates upon the problems related to the present day corporate environment without making any compromise on the problems that could appear in future in the wake of the strategic change adopted by the organization on the one hand, and in the aftermath of alterations in the political, environmental, social, technological, legal and economic fields on the other.
3 pages (750 words) Essay
In order to meet these, managers must be well equipped with a range of abilities and skills to ride the wave of organizational development successfully. Underlined below are these key aspects. Roles refer to an organized set of behaviors. The roles of a manager are diverse and can mainly be classified as interpersonal roles, informational roles and decisional roles (Mintzberg, 1973).
8 pages (2000 words) Essay
Security and Risk Managment
There is a popular view or, in fact, popular news in every channel or communication media that the international terrorist activities are on the rise; it is spoken about in the
14 pages (3500 words) Essay
Risk managment
This is necessary both for the organization itself and for the society in which it operates. Euro Disney, the joint venture between the US parent company Walt Disney and the French government had to face severe and unexpected financial
10 pages (2500 words) Essay
Some of these appear obvious, such as undertaking strategic analysis (areas B2, B3 and B4), providing organisational leadership (B7) and
4 pages (1000 words) Essay
Risk managment and insurance
The regulation of an insurance entity begins at the point of licensing. The licensing pertains to reviews of insurer’s finances,
2 pages (500 words) Essay
When employees feel personally involved in the formulation and implementation of organization goals, they will get motivated and improve their work efficiency and output. This, in turn, leads to organizational success. Performance evaluation system
1 pages (250 words) Essay
Risk Managment
Risk management represents the process of highlighting, analyzing, and communication risk and embracing averting, transferring, or managing risk to an
6 pages (1500 words) Essay
Corprate law general partnership
However, these provisions differ from country to country based on the corporate specifications provided to govern business entities. In an argument by DeMott (2001) the law seeks to limit fraud
4 pages (1000 words) Essay
Risk & Risk Managment in ERP Systems of Microsoft dynamics GP
Organizations and enterprises are heavily investing in the modern management information systems for the purpose of increasing output, attaining competitive advantage over competitors and establishing effective management and control strategies. Microsoft Dynamics GP
4 pages (1000 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Corprate risk managment for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us