Management
Select either Chapter 12 or Chapter 20. Answer all questions for the chapter selected.
Chapter 12
Do not limit your discussion of the topics to the textbook. Use outside sources for examples.
Explain how Key Risk Indicators assist companies in identifying emerging risks. Select a company other than Intuit and provide examples of how KRIs would be useful.
Explain how Key Performance Indicators help companies to manage existing risks. Select a company other than Intuit and identify at least three KPIs unique to their business. Explain how the KPIs can assist the company in managing risks specifically related to their company/industry.
What is the effect of not measuring performance of an ERM program on the overall quality of the program?
How can the Board of Directors be confident in the information reported on management’s progress in responding to significant risks?
Chapter 20 Implementing Risk Management within Middle Eastern Oil
1. Identify and discuss at least three of the challenges the newly formed risk management team faced.
2. Select one of the divisions (IT, Legal, Project Management or Environmental) and explain how that department can interact with and support the risk management team to help manage risks identified with that department.
3. What were some of the challenges of the data gathering process used for the Corporate Risk Exercise used in 2010/2011?
4. Using the case study information (Exhibits 20.9, 20.10, 20.11, and 20.12), provide a list of at least 10 potential corporate risks that might have been identified by the project team. In your opinion, identify the three most important risks that should be addressed and explain your reasons for selecting each risk.
Required:
Provide an initial posting of 400 to 600 words by Thursday. Then provide two responses of at least 100 words each that extend or provide alternate views for the initial posts of at least two students by Sunday. Repetition of the questions and the reference list are not included in the word count.
Do not access the threads until you are ready to post your entire answer. If you make a mistake, do not edit the response; reply to your own answer with the revision.
Use formal writing. Errors will reduce your grade.
Respond to the initial posts of at least two students, extending the discussion by adding new insights, different examples from your experience, or from other sources.Add value to responses to classmates and provide support in the form of a reference and citation in at least one of the responses.
Apply critical thinking. Probing questions or challenging assumptions are strongly encouraged for maximum points. Agreement, quoting other learners, or repeating the case content will count as zero words and zero points. It’s great to ask questions in your responses to classmates, but also provide substance and do not ask questions after 8pm on Sunday, as you cannot expect responses to them that late on the last day of class for the week.
The textbook is not considered common knowledge. If you use information from the book in your answer, citation to the book is required.
Post answers directly in the discussion box instead of attaching documents.
Discussion Rubric Criteria
Points
Provided accurate information that showed in-depth understanding of the topic by using information learned from the assigned readings and additional research.
Used grammar and spelling accurately and properly supported and cited sources.
20 pts
Responded to the initial responses of at least two classmates with substantive comments that added to the discussion.
10 pts
Total
30 pts
Danielle’s Posts
I agree with Danielle that the critical risk indicators allow organizations to determine what risks may arise in the future. These are like hints given to the company to help them in preparing for the events that may happen in the future. Identifying and understanding the significant risk indicators can help organizations develop strategies that better position the organization to manage new risks as they arise (Hristov and Chirico, 2019).
In 2021, Michael Company focused on the key risk indicators that hinted at the more significant risks that could occur in the future and encouraged the organization to adapt the processes that enabled them to handle the risks. Key risk indicators are metrics that show the potential risks that can negatively influence a business. They are an effective way of monitoring and quantifying each risk. The key risk indicators act as an early indicator and warning risk detection system that helps companies efficiently manage, monitor, and mitigate risks.
The key risk performance indicators help an organization measure how successful its business approaches are. They help a company determine how well they perform in certain areas and which areas they lag. Understanding the indicators can ensure that employees can identify the opportunities and threats. At Michael’s, the key performance indicators include sales data, customer satisfaction, and employee satisfaction. All the key performance indicators help the company determine whether its current approaches are effective.
I agree with Daniella that every ERM program performance should be measured to help guarantee that the strategies used are helpful in managing risks. The board of directors can be confident with the progress towards managing certain risks if there is evidence such as the key performance indicators that manage or monitor the risks.
Breanna’s Post
I agree with Breanna that the management uses the key risk indicators to measure and indicate the risk of specific business operations. They give an early signal of increasing risk exposure in different sectors of the business. They have played a significant role in enterprise risk management programs within companies. These metrics offer a way of monitoring and quantifying various risks. For instance, Addidas has relied on key risk indicators to constantly monitor and evaluate information about the market and competitors in the shoe industry. This has allowed proactive marketing strategy modifications. The key risk indicator measures the likelihood of risks and the consequences that exceed the risk and ability of the organization to succeed. The key risk indicators act as vital predictors of unfavorable events that can negatively influence the organization.
I concur with the post that the key performance indicators assist the management in measuring and recognizing the growing risks. Measuring and knowing the right KPIs will help in achieving the results faster. Effective key performance indicators ensure that a business accomplishes its objective. These quantifiable measures can determine how well the company objectives are met.
Key performance indicators are vital indicators of the progress towards the desired results. Key performance indicators focus on operational and strategic improvement and help focus on what is more important (Ishaq Bhatti, Awan, and Razaq, 2014). For instance, the lagging indicators show past organizational success, while the leading indicators show the antecedents of future success.
I also agree with the post that failing to measure the ERP program means that there is no improvement to the risk structure, analysis, and reporting. Learning and reflecting from the ERP program help drive changes that improve performance. The board of directors is confident of the information reported in the management process if it indicates the risks and potential opportunities within the organization. The information is more significant if it’s measured through enterprise risk management programs that allow the company to identify, assess and prepare for any risks.
References
Hristov, I., & Chirico, A. (2019). The role of sustainability key performance indicators (KPIs) in implementing sustainable strategies. Sustainability, 11(20), 5742.
Ishaq Bhatti, M., Awan, H. M., & Razaq, Z. (2014). The key performance indicators (KPIs) and their impact on overall organizational performance. Quality & Quantity, 48(6), 3127-3143.
