Sei sulla pagina 1di 7

ENTERPRISE RISK MANAGEMENT ANALYSIS

Enterprise Risk Management: Analysis

Student Name

University Name

Authors Note

Please insert the Authors Note here.


ENTERPRISE RISK MANAGEMENT ANALYSIS

Abstract

This paper provides an in-analysis of the application of two different models on the applicable

risk in the business proceedings of United Grain Growers (UGG). The different risks within the

business operations of the company are analyzed in detail and evaluated based on their impact

factors. A further extensive risk analysis (LI, FAN, QING & LIU, 2009) is performed on the

risks and their scales are defined to establish risks on the basis of their operational applicability.

Furthermore, the evaluation is done using the PAPA model (Nilsson, Martinez & Hjelm, 2004)

which lays down a detailed breakdown of the workings of UGG. The model offers a module by

module look at the different avenues of Privacy, Accessibility, Property, and Accuracy. These

allow the drawing of a comprehensive case for the evaluation and applicability of all the risks in

play pertaining to the scenario of the case study. Further evaluation is also conducted on the

basis of the different scenarios applicable in the context of the case. The feasibility of application
ENTERPRISE RISK MANAGEMENT ANALYSIS

of Monte Carlo Simulation is also evaluated to be thoroughly aware of the different possibilities

in the context of the case and conclusive distinction is established for clarity.

Keywords: risk, risk-assessment, risk-mitigation, mitigation, APA, strategy.

Strategic Objectives

The major objective through the course of the risk analysis is the identification of

applicable risks and their intensity. This allows the drawing down of the major objectives in the

context of this case study.

1) Identification of Major Risks applicable in the case of UGG.

2) Identification of the scale of risks in the form of Risk Assessment Matrix.

3) Plotting the scenario into a PAPA model.

4) Contrasting the difference between both models.

5) Applicability of Monte Carlo Simulation.


ENTERPRISE RISK MANAGEMENT ANALYSIS

Strategic Risks

The major applicable risks in the scenario are recognized and categorized as listed below.

Business Interruptions

1) Accuracy of Data

2) Preference of Consumers

3) Disturbance in Civil Situations

4) Exposure of Marine/ Cargo

Employee Liabilities

1) Industrial Espionage

2) Loss in Important Personnel

3) Performance of Employees.

PAPA Model

The breakdown of the applicable PAPA model in the context of the risks applicable in the

scenario will done as the following.

Privacy

1) Exposure of crucial location-sensitive data

2) Security of Information.

3) Theft of identity.

Accuracy

1) Lack of Context to understand Data.


ENTERPRISE RISK MANAGEMENT ANALYSIS

2) Liability of Litigation.

3) Rumors created against the company.

Property

1) Company’s ownership of its contents

2) Ownership of products produced

3) Permanent Accessibility

Accessibility

1) Access to markets for grain.

2) Shipping and Transport Channels

3) Network Availability.

Risk Matrix

The different risks applicable in the scenario will be broken down and understand as per the

following analysis.
ENTERPRISE RISK MANAGEMENT ANALYSIS

Conclusion

Hence it can be concluded that on the basis of the separate analysis performed by both

models, there are some major risks currently being faced by UGG. The extent of the level of risk

is plotted down in the form of both PAPA model and Risk Analysis Matrix which allows the

drawing down of strong references of the risks and their scalability in the context of this paper.

The Monte Carlo simulation (Kwak & Ingall, 2009) is not applicable in this scenario due to the

clarity of probability of risks and their factors, this removes any requirement of the use of the

Monte Carlo simulation.


ENTERPRISE RISK MANAGEMENT ANALYSIS

References

Abkowitz, M., & Camp, J. (2017). Structuring an Enterprise Risk Assessment Protocol:

Traditional Practice and New Methods. Risk Management And Insurance Review, 20(1), 79-97.

doi: 10.1111/rmir.12068

Kwak, Y., & Ingall, L. (2009). Exploring Monte Carlo simulation applications for project

management. IEEE Engineering Management Review, 37(2), 83-83. doi:

10.1109/emr.2009.5235458

LI, T., FAN, C., QING, Z., & LIU, X. (2009). Risk assessment model for an information

system based on classification of risk events. Journal Of Computer Applications, 29(10), 2806-

2808. doi: 10.3724/sp.j.1087.2009.02806

Nilsson, H., Martinez, A., & Hjelm, M. (2004). Full band Monte Carlo simulation - beyond the

semiclassical approach. Monte Carlo Methods And Applications, 10(3-4). doi:

10.1515/mcma.2004.10.3-4.481

Potrebbero piacerti anche