Environmental Scanning And Key Risk Indicators

809 Words4 Pages
Indeed, there are multiple tools that can be utilized to determine organization risk, such as Risk Analysis Questionnaire, Financial Statement Method, Flowchart Method, On-Site Inspections, Environmental Scanning, and Key Risk Indicators (Fraser & Simkins, 2010). Ultimately, I chose to use Environmental Scanning and Key Risk Indicators to assess The Kroger Company’s risk. Comparatively, each tool offers unique advantages and viewpoints of the organization’s operations, current risk, and perceived future risk. So, why did I choose Environmental Scanning and Key Risk Indicators as the tools to identify risk within Kroger? First, the decision had to made as to the type of risk to identify, such as environmental, regulatory, political, or technological. Then, the determination was made as to who or what would be impacted by the risk, so there were questions to be asked, such as: What is the business risks within Kroger’s market or industry? What impact would be caused as a result of changes in market conditions, such fluctuations in prices, interest rates, and exchange rates? What would happen as a result of operational risks associated with internal system failures because of mechanical problems or human errors? What legal risks could occur from failure to meet contractual obligations? (Risk, 2009). After determining the risk to be identified, I reviewed each tool to choose the one that best diagnosed risk exposure. Thus, the Risk Analysis Questionnaire is a checklist
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