The course is Corporate Risk Management.
Justine and Early Engineering, Inc. wants to assure that they fully integrate the risk register at the corporate, SBU and project levels. The risk management process looks like:
Management: Strategic Level: Corporation Risk: Finance
Tactical Level: SBU Risk: Bundle
Operational Level: Project Risk Cashflows
1) Discuss how the management and risk at each level of the corporation is brought together into a comprehensive risk management program.
2) Be sure to explain the terms (a) strategic, (b) tactical, and (c) operational for each of the levels of the corporation and examine the financial, bundling and cash flows at those levels.
Risk management has been put high in the agenda for developing companies because of the changes that are being experienced in the business world such as increase in customer demand and market globalization. An effective risk management system should have a process in place to identify the major business risks in each sector of the corporation. For the organization and its operations to remain sustainable the management body of the corporation should put risk management as a crucial element. It is important to note that taking risks are essential for the organization to grow. The risks in the organization should hence be mitigated and not eliminated so that the rewards that are attached to the risks can be obtained and boost the operations of the company (Risk Management, 2011).
The Risk Management Process:
A risk management process gives a description of the steps that should be taken in the identification, monitoring and controlling or risks. Risk management has a lot of procedures that have to be followed. It entails the identification of the risks in the organization and analyzing the implication together with the solutions so minimize the risk. Responses that have been ascertained to be appropriate are allocated to the risk situation. To maintain the risk management plans of an organization, this process should be undertaken in a continual and cyclical manner so that the risk management process can be continuous and not a linear process (Smith, 2006).
In the management of risks in the company, risk management ...
Management and risk at each level of the corporation is brought.