Analysis Of Palmer's Concrete Limited Liability Company

Risk management is the process where individual and overall risks are understood and managed, thus optimizing success by minimizing the threats and to maximize opportunities [APM Body of Knowledge, p. 179]. All projects are inherently risky, because it performed by people and subject to the external influences or environment. Risk is something that it cannot be predicted. That is why into the company’s organization, risk management has an essential and vital part in any project whether that is in the planning procedure or to project implementation. Risks are always exists and can be translated as an opportunity to gain benefits. In addition a risk may incur serious monetary losses. The first step of risk management begins when identifies risk. These are identified through several techniques that risk management can select and use. One of the most effective techniques is brainstorming where members are attending meetings in order to gain ideas of either to identify a risk or how to overcome the arising risk. However a document review technique is also applied which is also very helpful, in this technique, documents are reviewed from prior projects which leads to a better understanding of the risks that may do occur. If a company seeks risk management capabilities, is to gaining competitive advantage, riskier businesses seek potential and higher profits.

Align strategy and corporate culture: The WP management team will create better risk awareness by using ERM. Also, a positive and open culture with respect to risk and risk management will be created as well. This will make every people at every level in WP to participate into the risk management activity which will be a huge benefit to WP and its employees.

A holistic view of risks is crucial for business profitability and this can be achieved through a process of frequent evaluation, training, monitoring and feedback sessions with key stakeholders (Chugh, 2016). This approach provides a framework for understanding the patterns and trends of potential risks and how they relate to the industry. A successful business should have efficient procedures, which include management and financial reporting systems. There many examples of organizations which have successfully managed their risks and turned the opportunities into concrete returns for the shareholders.

According to Floyd Palmer, (personal communication, November 15, 2015), experience is the founding strength to Palmer’s concrete as Floyd himself has a combined thirty years. Total Quality Management is important for Palmer’s concrete, therefore as C.E.O focusing on the customer, having a strategic approach to improvement, and encourage mutual respect, plus teamwork is all important (Blocher, Stout, Juras, & Cokins (2013). Other strengths of Palmer’s concrete are being family owned, traditional inventory, and the business location in an historical district, but like most corporations, there are times when the economy is nondiscriminatory.

According to Floyd Palmer, (personal communication, November 15, 2015), experience is the founding strength to Palmer’s concrete as Floyd himself has a combined thirty years. Total Quality Management is important for Palmer’s concrete, therefore as C.E.O focusing on the customer, having a strategic approach to improvement, and encourage mutual respect, plus teamwork is all important (Blocher, Stout, Juras, & Cokins (2013). Other strengths of Palmer’s concrete are being family owned, traditional inventory, and the business location in an historical district, but like most corporations, there are times when the economy is nondiscriminatory.

In the analysis of Palmer’s Concrete Limited Liability Company. The company seems to have many opportunities to regain the industrial statues that made them a thriving company prior to the 2007-2009 economic recession. Floyd Palmer, owner gives the company the most prestigious advantage, the combination of thirty-year’s experience. Although, Floyd is a Baby-Boomer he understands that hard work today does not come cheap for most his age. For Floyd, learning a skilled craft was the most important part of becoming successful. Floyd does not hold a college degree, as he began working with his father immediately after high school (Floyd Palmer, personal communication, November 15, 2015). Baker, (2013) published in the Chicago Tribune, “Why gaining work experience is more important than your education.” Baker argues that colleges are the first to tell you that you need more than a degree to get hired and graduates with work experience are more attractive than those without.

Traditional risk management deals with hazard risks to the organization. Hazard risks, or negative risks, are transferred through of through the use of insurance or to an external party (Elliott, 2012). A CRO must align the objectives of the risk management program with the objectives of the organization. This involves understanding the tolerable uncertainty or risk tolerance that the management can handle. If the bank management tends to be very conservative and risk adverse, then the risk management program will have to take that into account especially in areas of insurable hazard risks. When an organization is assessing hazard risks using traditional risk management techniques, the CRO is evaluating risks based solely upon the event in question and its probability of occurrence without any regard to interdependence on other factors (Elliott, 2012). Three hazard risks that the management program has prioritized are the risks of property loss, of workplace violence, and of business interruption.

Setting up a project makes it necessary that risks that are likely to affect the business are determined. The characteristics of the risks are to be documented. Participants in the risk management process vary, and they include personnel such as end users, customers, risk management team, project team, outside experts, stakeholders and other project managers (Piazza-Waggoner, Adams, Goldfarb, & Slater, 2002). The risk identification process is therefore supposed to be interactive. The project team for example forms the first interaction, primary stakeholders and the entire project team forms the second interaction. To reduce the level of biases, it is important to have the third interaction; third persons need to form the third interaction.

Risk management is a way to find, analyze, and then prioritize risks or hazards that may be associated with an organization. The purpose of Hazard Analysis and/or Risk Management is to be proactive rather than reactive in controlling potential problems that may occur both fiscal, environmental, and human. In almost every organization there are some types of hazards and risks: safety issues, supplier issues, weather issues, legal or credit issues, disasters, completive attacks, etc. Risks and hazards are so common that standards have been set to identify, and hopefully help mitigate, potential issues (See Figure 1) (International Organization for Standardization, 2009).

In the current global economic environment, identifying, managing, and exploiting risk across an organization has become increasingly important to the success and longevity of any business. Businesses now view risk as a necessary failure that

Risk management has become an integral part of an organization. Expectation from the risk managers are increasing in order to meet up with the increasing competition and changes in the market. Currently the risk management techniques are having broader spectrum which covers operational, strategic and the entire enterprise besides being focused only into the financial risks. ERM (Enterprise Risk Management) is the need of hour and market is expecting the risk managers to possess more skill sets in managing the ERM. But this change is not being accepted by all due to various professional requirements (Bugalla & Kallman, 2012).

Long gone are the days when risk management was left to a single resourceful person within an organization. The individual assumed the role of reporting to the middle management the specific aspects of the business that need to be changed in an effort to minimize occurrence of risks within an organization. It has however been tested and found true that business risks need to managed at the source regardless of the industry sector. There has been current success in ERM that show clear evidence that everyone has a role to play in enterprise risk management (Oplatka, 2012). Everybody has a role of understanding the risk within their portfolio and have the necessary tools that makes it possible to manage such

risks is required to consider by understanding 4 key areas to the company like Strength,

Managing risk is a complex issue in the world of business today, and covers issues from budgets, to legal issues as well as security for a company, and these are topics that will be discussed in this study. Often the success of a company depends on the risk management skills of the team and leaders. How well risk management in business is handled will decide whether the mission of the company will be carried out and it is primary to security. This study will look at issues that are affected by risk management and draw conclusion on how they should be used in order for a company to reach optimal success.

In enterprise risk management, a risk is defined as a possible event or circumstance that can have negative influences on the Enterprise in question. Its impact can be on the very existence, the resources (human and capital), the products and services, or the customers of the enterprise, as well as external impacts on society, markets, or the environment.