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Risk Management for Small and Medium Companies

Small to Medium Companies

Equipped with the basic foundation to create a risk management program for a small- to medium-sized manufacturing company, what would you recommend to the leadership of the organization who has asked for your input to choose among these three choices:
- Establish a skeletal program and build on it.
- Commit a significant investment to creating and implementing a comprehensive risk management program.
- Keep doing what you are doing and accept the losses as they come, as you have in the past.
Explain your choice and justify your recommendation.

Solution Preview

I personally would advise creating a skeletal program and building on that with the savings from value gained. For the risk program I would deal with first safety issues, then disaster plans, and finally on employee planning. None of these are actually more important than the other, but each needs to be addressed. In a small business, safety issues are very important due to the costs associated with fires, injuries, deaths, or machinery breakdowns. Safety is addressed first also because the training information can be formulated in house and ...

Solution Summary

Discussion on what kind of plan and why one would choose this particular plan, its components, and what is less attractive about the other options.