Case Analysis : Amazon.com Inc.

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Amazon.Com Inc. Amazon.Com Inc. (Amazon) is the world’s largest online retailer led by their CEO, Jeff Bezos, whose focus continues to be a rapid expansion. The company is headquartered in Seattle, Washington and began as an online bookstore. Assessing risk management for the online retailer is determined by looking at the four high-level risk categories that include hazard risks, operational risks, financial risks and strategic risks. It is important for companies to understand these different types of risk and develop a risk program that addresses these risks. By using the International Organization of Standardization (ISO) 31000 Risk management process, Amazon can evaluate the risks that the company faces. The risk assessment process includes the following: 1. Identifying the organizational context - what are the company’s objectives, structure and operations? 2. Risk Identification - what are the possible risk events that the company faces? 3. Risk Assessment - what is the likelihood that the risk event will occur and what is the potential impact of the event? 4. Risk Evaluation – what is the organization’s level of acceptance of risk? 5. Risk Treatment – what steps must be taken to mitigate the risks? 6. Monitoring and Review – are internal controls working effectively to mitigate the risk? 7. Communicate – with shareholders and with employees throughout the company. (Brown, Roach, & Demchak, 2011). The company has a high level of acceptance of risk that
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