Essay on Risk Management

Words: 10229
Pages: 41
02-046
Copyright © 2002 Lisa K. Meulbroek
Working papers are in draft form. This working paper is distributed for purposes of comment and discussion only. It may not be reproduced without permission of the copyright holder. Copies of working papers are available from the author.
Integrated Risk
Management for the
Firm: A Senior
Manager's Guide
Lisa K. Meulbroek
Harvard Business School
Soldiers Field Road
Boston,MA 02163
The author gratefully acknowledges the financial support of Harvard Business
School's Division of Research. Email: Lmeulbroek@hbs.edu
Abstract
This paper is intended as a risk management primer for senior managers. It discusses the integrated risk management framework, emphasizing the connections between
This article presents a managerial overview of integrated risk management, using a series of examples to illustrate the range of management decisions that it can influence and the benefits for the firm from its implementation. By applying integrated risk management, managers will benefit from new insights about the interplay among different types of risk and traditional financial decision areas, connections easily missed without a comprehensive framework. Because the three ways to manage risk are functionally equivalent in their effect on risk, their use connects
4
seemingly-unrelated managerial decisions. For instance, because capital structure is one component of a firm's risk management strategy, effective capital structure decisions cannot be made in isolation from the firm's other risk management decisions.
Consequently, a firm's capital structure choice is inextricably linked to its capital expenditure plans, along with many other operational decisions. This paper's discussion of the integrated risk management framework emphasizes the connection between the ternary mechanisms to alter the firm's risk profile, and offers guidance on their practical application. There are those that question whether firm-wide risk management can add value to the firm. Certainly in the hypothetical Modigliani-Miller world of

Related Documents: Essay on Risk Management

Risk and Risk Management Essay

achieve global targets and compete with the other competitors. It shows that the company predict customer needs and handled well to risk. Global company and risk management Brindley (2004) suggest that global competition, technological change and the continuous search for competitive advantage are the primary motives behind organisations turning towards risk management approaches in the international chain industry. Furthermore, the increase in economic activity at the global level encourages…

Words 1353 - Pages 6

Introduction: Risk and Management Risk Management Essay

Management of Risk Definition Organizations of any kind face internal and external factors and influences that make it uncertain whether, when and the extent to which they will achieve or exceed their objectives. The effect this uncertainty has on the organization’s objectives is “risk”. (AS/NZS ISO 31000:2009, p. iv) Thus risk is the effect of uncertainty on objectives. Typically projects have a variety of objectives. For example typically construction projects have objectives related to time…

Words 1055 - Pages 5

Walmart Risk Management

the goals of risk management for the Walmart corporation. I will also discuss the company's identification of application risk factors, strategies to manage risk, plans to monitoring risk and social implications an responsibilities. Walmart has over 1.6 million associates and 3,500 facilities. With that being said, due to the fact that they manage such a huge corporation,they are faced with many different types of risk. However, Walmart has done a great job at managing these risk. This fact is…

Words 841 - Pages 4

Essay about Risk: Risk Management

Risk Management In today’s business world there are many opportunities for small problems and mistakes to cause large problems for companies. There are also easy opportunities for criminals and competitors to steal material or information that would be devastating to the company. Whether it’s an outside or internal factor if it is missed it could cause the end for a company. These are some of the aspects that are assessed in risk management. In risk management plans need to be established with the…

Words 1673 - Pages 7

Risk Management Plan

MARCH 19, 2014 RISK MANAGEMENT PLAN WATER PROJECT IN SUB-SAHARAN AFRICA PREPARED BY MINA GADELRAB 11584190 Risk Management Plan – 11584190 TABLE OF CONTENT EXECUTIVE SUMMARY ..................................................................................................... 3 1. 2. 3. 4. INTRODUCTION ............................................................................................................ 4 1.1. Project Information ....................................................…

Words 5845 - Pages 24

The Importance Of Risk Management

level of consideration. Improved understanding for its staff and management is needed therefore will require to implement a Compliance driven training regime that promotes essential elements such as TCF. An inherent function within this change of culture would be to adopt a ‘Compliance Champion’ in each business unit. The Compliance Champions structure would typically work in parallel with…

Words 1055 - Pages 5

Importance Of Risk Management

Chapter3 - Risk Based Management Thinking in NPD Introduction to Risk Management Definitions: Risk: “Effect of uncertainty on objectives”. [BIB-02] Note1 – An effect is a deviation from the expected positive and /or negative Note2 – Objectives can have different aspects (such as financial, health and safety, and environmental goals) and can apply at different levels (such as strategic, organization-wide, project, product and process). Note3 – Risk is often characterized by reference to potential…

Words 1948 - Pages 8

Risk Management Process

Running head: RISK MANAGEMENT 1 Risk management Process: Altex Corporation Brandon Ellison BUS 697 Dr. Shawn Milligan 1. where is your introduction? [Shawn Milligan] 1 2 2. All assignments in this class are academic papers and should include introduction, conclusions, thesis statements, and conceptual headers. Academic papers allow you to demonstrate that you can write clearly and think critically. Question and Answer do not show these skills. [Shawn Milligan] -1- RISK MANAGEMENT PROCESS 2…

Words 1827 - Pages 8

Disadvantages Of Risk Management

Agyepong in 2013 it is asserted that the probability of risk management practices is proportional to the organization’s capital which implies risk taking decision will be done in cognizance to the amount of exposure that the organization shall be exposed to in terms of the financial consequences whether positive or negative. A positive risk management decision will be driven by a large capital base whereby management will either take more risk strategically in order to realize high returns on investment…

Words 993 - Pages 4

Project Risk Management

Project risk management is about identifying new risks or changes in the threat level of existing business processes. The challenge for project managers is how to get teams, functional areas, business processes, systems, and vendors aligned to new goals; moreover, how to get the needed transparency into the activities that have been agreed upon in project execution and how to prioritize the issues that surface every step of the way, until the project is completed. The benefits of embedding project…

Words 321 - Pages 2