Environmental Scanning And Key Risk Indicators

For the case study provided with this Assessment Task, you are required to review risk management processes and determine scope and objectives, taking into account stakeholder input and both internal and external environmental factors affecting the organisation. With the information gathered, you are

impact of the identified risks to the organization based on key business drivers (loss of life, loss of

Internal failures often happen for many different reasons including receiving defective products from vendors, having the wrong settings set on the machines used to produce the product, using equipment that is not up to the correct safety standards, as well as using the improper methods when operating the machines, carelessness of employees, and not using the proper material handling procedures set forth by the company. The costs of internal failures include loss of production time, having to scrap and rework products, having to investigate circumstances within the workplace that are costing the company money, and damage done to the equipment. Regarding rework, often times the salaries and wages of employees can be affected. With his, there are many steps and procedures that a company must undergo and figure out to be able to get to the bottom of the issues that lie within this aspect of internal failure costs.

Effective planning & execution of risk assessment procedure in all financial & operating sectors to identify potential risk to organization.

Identify the potential risks which affect the company and manage these risks within its risk appetite;

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2. The purpose of “Risk Assessment” is to identify organizational risks, analyze their potential in terms of costs and likelihood of occurrence, and install those controls whose projected benefits outweigh their costs (Bagranoff, Simkin, and Strand 2005, 111).

Environmental scanning is a critical piece of the planning process in the POLC framework and “means that planners must be aware of the critical contingencies facing their organization in terms of economic conditions, their competitors, and their customers.” (Carpenter, M., & Bauer, T. (2009). Introduction to Principles of Management. In Principles of management (p. 9). Nyack, N.Y.: Flat World Knowledge.) The American auto industry is no exception to this fact and must face the impact of shifts in global competition and changing consumer expectations on their industry. The global recession that started in 2007 has impacted the American and worldwide automobile industry by forcing corporations out of business, into bankruptcies and corporate restructurings. There have also been changes in the supply chain of components that go into these vehicles due to the same economic hardships hitting the companies that provide the components. The global demand for automobiles is rising and emerging markets in the BRIC nations (Brazil, Russia, India, China) as well as an increased appetite for higher margin vehicles in North America will create opportunities for the auto industry if it can properly plan and forecast sales growth and consumer demand. “Apart from sales volume growth, four challenges will shape the near and medium-term future. The industry response to these challenges could raise profitability...these challenges will matter much more for established markets than for emerging

Like any other company Walmart continually faces with risks, and it can be either from external or internal sources. The changing markets, increasing government regulation, and employee turnover could be the factors of any risks, and these risks cause changes in the company’s day-today operations; therefore, the company must establish effective and efficient internal control to reduce risks and prevent and detect fraud and error. According to Turner and Wieckgenannt (2013), the risk assessment is a process to identify existing threats and any potential for additional risks and stands ready to respond should these events occur.

Based on AS/NZS 4360:2004, risk identification and classification is the second significant stage because any unidentified risk will be omitted from further analysis and any misclassification would become a threat to further procedures.

* Operating in International Markets involves exposure to volatile movements in foreign exchange rates. The economic impact of foreign exchange rates movements on them is complex because such changes are often linked to variability in real growth, inflation, interest rates, governmental actions and other factors.

Strategic risk managers play the role of environment scanning as they look out for opportunities as well as the threats that might affect business processes. The threats that are always scanned in this respect include those risks that effect firm strategic objectives and value of shareholders. The managers are relationship oriented where they build relationships with shareholders and key partners. The group is also highly sensitive to policy frameworks that might be formulated in an organization and they are also politically sensitive. The specific relationship of the three broad areas will be discussed on how it is related to organizational risks.

There are wide range of chemical benefits in the society, such as industrial productivity, increased agricultural and improvements in the control of disease. Nevertheless, chemicals have the potential to cause damage, ill-health to the environment and many potential effects of spill. There are complex risks to humans from exposure to the chemicals. The risks are a combination of two factors, in which under specified conditions, there’s probability that a substance or situation can produce harm. There’s probability that an adverse event can occur such as exposure from a chemical incident and the consequences of adverse event such as the effects from exposure to the chemical. (APHO, 2002)

Typically companies have a higher tolerance for financial risks than operating risks. Financial risks include risks associated with foreign exchange rates, liquidity, credit decisions and the operating risks include risks associated with supply chain, information technology. Financial risks are generally easier to quantify and control as compared to operating risks, many of which are due to being influenced by external factors out of a company’s control. (Compliance week, 2008) The process of risk management has been greatly influenced by the evolution of financial markets and institutions. Over the last decade the financial market has undergone swift and philosophical changes. As the market progressed, the changes in our financial

Environmental scanning is a process of gathering, analyzing, and dispensinginformation for tactical or strategic purposes. The environmental scanning processentails obtaining both factual and subjective information on the businessenvironments in which a company is operating or considering entering.Environmental scanning is the process in which a firm continually collects andevaluates information about its external environment. There are six main categoriesof environmental data to consider when evaluating marketing decisions. These aresocial forces, demographic forces, economic forces, technological forces, politicaland legal forces, and competitive forces.