Corporate Risk Management
Executive Summary
This report can freshly divide into few parts with the simple knowledge of risk assessment of three corresponding companies working in a distinct sector. The first part introduces the topic with the three overviews of distinct companies. The second part is the assessment of risk for this company in the development of the market. Further in the report, it is stated that risk response and risk communication of this company in the market. The final part of this report deals with the summary of the findings that can reflect the success of this report.
Introduction
Risk management involves a different method and process for an organisation to minimize financial loss. Corporate risk involves certain external and internal factors to modify company product along with financial position to influence the stock price of a company. Three distinct UK companies are selected working in distinct fields in the market to analyse corporate risk factor.Channel 4 is a television network company operating in the market of UK with the collaboration with Virgin TV. The headquarter of this company is located in Leeds of UK and forecast 138 channels in the market. This company has initiated broadcasting from the year of 1993 and executed with a transmission policy with a commercial broadcasting network (Channel4.com. 2021).
Technologies and internal department perform various practices in the management of risk factors to reduce exposure and loss for the company. However, Altria is another UK marketing company to develop its market with the largest producer of cigarette and tobacco-related product. This company has started its journey in the market from 1985 in the US market and expanded in the international market. The company has collected an annual revenue of 2536 crores of USD every year that reflect the success story of this company in the market. Altria has an employee strength of 8300 and sustains its growth with the involvement of the subsidiaries (Altria.com, 2021). This company has met the demand of customers with a diverse range of product in the vast region of business.
A journey of Marks and Spencer started from 1884 to become the multinational retailer in the market with the development of a product. The headquarter of this retail company is located in London and specialised in selling clothing and home products. This company has expanded in a market with its effective decision of CEO Steve Rowe. This organisation is founded with the joint influence of Michael Marks and Thomas Spencer and developed numerous products and collected 1018 million GBP in every financial year (M&S.UK, 2021). This reflects the marketing strategy and the management of risk that increase this company in the international market. This assignment will focus on contrast and comparison of three UK marketing company with the factor of risk management in corporate sector
Identification and assessment of risk
Risk is the vital factor that involves the factor of uncertainty for the business with the concept and practices. Modelling and simulation of various variables imply knowledge and concept with the management of the problem in the change of business goal that can effectively manage the corporate risk for the company. Identification of risk involves few factors that can involve the management of risk in the market with the growing demand of company in the market (Zhaoet al., 2018). Assessment and identification of involve typical strategies and factor in the development of accomplishing resolution to meet the customer needs. Risk and uncertainty involve the impact of variable change on the objective of businesses with the development of four typical categories for M&S.
Figure 1: Factors for identification and assessment of risk for M&S
(Source: Created by the learner)
Pure Hazard deals with loss and changes with the outcome of a company in the development of risk factor to increase the possibility of the profit.
The company deals with financial risk in the development of product derivative to attract customers in the market.
Operational risk is a vital concept that can expose potential losses and involves an internal process in the development of external events.
Strategic risk involves the poor business decision that can relate to demographic and regulation with the modern trends in the development of business objective (Stevenson, 2018).
Channel 4 is a networking company that has developed its management of risk with the development of the matrix to sustain market growth. This company has applied the epistemic policy in the development of risk management with the dependency and risk management to bridge the problems to reduce the gap in the market. This networking company has developed a various strategy in the development of current practices. Channel 4 has focused on four factors that can help in the development of risk matrix with the identification and assessment of risk in the leading market. Networking Company in market deals with the development of risk matrix that can help in modification and uncertainty with the development of risk that can help in change of business objective.
Description of Risk: Television networking channels deal with various risk factor in the development of the market. Financial risk and development of epistemic policy influence this company for utilisation of resources to increase the market demand with the development of risk and uncertainty (Arimbiet al., 2019). This factor describes the market risk for a company that acts as threat in the further expansion of a business.
Purpose of Risk: This factor states the reason and purpose for the management of risk in the development of marketing essentials. The networking company access various reason to change the market objective to reduce the market gap in development of project design with the current practices.
Project design and deliverable: The design of project can help in development of market of the company with the identification of risk to enhance employee relations. This factor can design various projects with deliverable objective in the development of various factor to increase the marketing demand of company.
Figure 2: Factors involved in Risk Assessment of Channel 4
(Source: Created by learner)
Project Schedule: The assessment of risk involves generation of project schedule for this networking company. OFCOM is an important project that can illustrate the relation of company with market objectives in the assessment of risk. This can change the company objective with the support and modification in employee relation (Kaczorek, 2017).
Altria has developed few factors in the identification of risk for its customer with the development of policies in for the alteration of applicant’s liability. Implication of agency involves identification of practical and transparent framework to guide the company in market.
Importance in Public Health: Tobacco companies has a vital importance for the importance of public health which involves the risk factor. The development of quality product influences the company in further development of public health policy. The alteration in the trade policy can enhance the growth of this company in leading market of tobacco with the change in business objectives.
MRTP Substantiation: This policy deals with trade affairs and generation of policies along with restrictive trade practices. This can help in help in development of this factor to increase few policies of company along with liability and transparency (Ward-Lasher et al., 2017). This factor enhances few health factors for further modification in business strategies that support the substantial growth of a tobacco organisation such as Altria.
Risk Response
Risk management and response involves a framework of nine factors for management of risk and development of strategy in reduction of threats. Development of a framework for response to risk involves distinct types and action in the identification and assessment.
Avoid: This factor deals with the negative response for risk with the application of business objective that influence business growth. Avoid is one of the crucial factors in the development of risk response. This can act as policy with the change in project to bypass the risk to deal with public opinion and technical risk. Legal and regulatory risk of the companies are considered under this factor in the development of public opinions.
Transfer: This factor can act as the threat for the company as to deals with risk response however, few risks can be considered as third party and can be regulated with insurance. Few commercial and strategic risk can involve in the design of environmental risk with the development of insurance (Boehlje and Langemeier, 2017).
Figure 3: Types of Risk response for the various industries
(Source: Created by the learner)
Reduce: This can deal with the risk and likelihood of the impact with the reduction in time. This can deal with wide operation along with scope and creep for the modification in personality clashes. Organisation and management deals with poor staff and leadership in the selection of technical negligence. This can involve poor leadership and staff selection that can influence this reduce factor in the response of risk. Altria is the tobacco company in the market that applies its resources to apply this approach in the response of risk and in development of marketing demand.
Contingency: This factor deals with leadership approach with the realisation of risk that can help in development legal and regulatory factor. Risk needs a contingency plan that can reduce the economical factor in the development of risk response with the rate of fluctuation (Blountet al., 2018).
Channel 4 applies the transfer policy is the risk response to support various public opinion in the development strategic policies. This can act as commercial influence with the modification of third party that involves the stakeholders of the company. Investors and shareholders play a crucial role for the transfer of technology in the development of strategic regulation. The marketing objective if company can be influenced with the accept of various policies with the modification in the development of commercial risk. Identification and assessment of risk involve various factor that can help in development of scope to forecast the distinct program (Paltrinieriet al., 2019). Model and concept involve the development of channel 4 along with fluctuation rate and insurance policy to support shifting of risk and transfer of risk. Risk transfer involves three factors in the development of business along with control strategy that are related with CNA insurance.
Exploit: The overuse of policy to transfer third party that involved risk response strategy in the development of business. This can act as the elimination of variation to support shifting of risk can enhance the growth of business. this can act as the vital factor in the development loss of risk with transfer of policyholder.
Figure 4: Two vital element of transfer approach applied by Channel 4 in Risk Response
(Source: Created by the learner)
Share: This can be another factor to share technology and policies by the company with the change in the concept of networking industry in the reduction of risk. This factor can help in the reduction of risk in the development of transfer agreement with the firms and the stakeholders of the company.
Retail companies like M&S applies the contingency approach for the risk response in the development of threat and opportunities in the market. Various department of retail company designs the strategy and plan for risk management which, can be considered as Catastrophes. M&S applies a contingency approach that can help in the development of leadership model and the change in the growth of exceptional plan with the development of various consequences. The threat and opportunity deal with the development of risk response that can implement various techniques in the change of expected plan with the development of risk matrix that can help in the determination of threat (Madry et al., 2019). The reduction of threat in the leading market can influence the business of the company with the responses along with specific action to create an opportunity for a devised plan along with consequences. Contingency approach involves three factors to explain the risk response for M&S in the market are as follows:
Protection:This factor highlights the protection of policies in the development of a retail market that can help in development of contingency plan with the decrease in market risk. The protection act involves contingency planning in the development of various factor that can support the reduction of marketing leadership model.
Figure 5: Components of contingency approach followed by M&S
(Source: Created by the learner)
Detection:This is another factor that eliminates few policies with which are identified and detected as unnecessary for a company. This can power the company with the development of various factor with the trend of the company that is crucial for market expansion. The change in approach can be considered as vital in the development of contingency approach.
Recoverability:This can focus on the recovery of the various policy with the importance and growth of various factor that can act as important for M&S in the market growth. The amendment of policies can generate the market objective in the development of strategies with the change in market demand and reduction of risk and response with the leadership approach.
Risk communication
Exchange of information and opinions among people and experts along with threat refers risk communication along with health and economic factor. The change in decisions that involve ultimate purpose in the support of business objective. Modification in information and management of risk involves conclusion and stakeholders in the development of business. Three companies from distinct sector help in development of market value and importance with the communication with the risk factor. Risk communication theory deals with the basic communication with a critical communicating tool and public hazards for the development of communication with risk in the industrial sector (World Health Organization, 2017). The risk communication theory deals with three vital stages in the development of three distinct levels that can essentially illustrate the risk communication factor in the company. Risk communication involves a few basic elements in the effective change along with related issues.
Importance and concern for the risk hazard along with severity and magnitude.
It can help in the measurement for urgency of a situation.
Probability and trends of hazards in the development of risk communication for a company.
Probability and distribution of hazard as exposed to the issues for a specific company (Thaler et al., 2017).
Channel 4 is a British networking company has developed the framework and policy for communication with the experts of the company and people in the market to assess the risk factor for company. the alteration of company objective deals with the risk communication theory in market from the lower to the higher level. The increase in the risk communication help in the development of the company objective along with the magnitude and probability in the development of situation urgency (Benavideset al., 2020). This organisation has applied the risk communication theory with the expansion of long-term risk along with the negative assessment. ERC can be considered as the strategic and effective communication n process in the development of an interactive process on the time of Emergency.Identification and assessment of risk involve various factor that can help in the development of scope to forecast the distinct program. Model and concept involve the development of channel 4 along with fluctuation rate and insurance policy to support the shifting of risk and transfer of risk.
Altria is a tobacco company that manufactures various category of product for people in the development of magnitude and probability. Increase in the risk communication with the people ensure the change in business objective for the company in the development of probability and magnitude. This organisation has developed various hazards along with the change in risk communication with the change in the development of an urgent situation. This company has focused on the high level of risk communication that ensure the market growth of the company. The innovative product for this company can segment market essentials with the support of high value in risk communication(Zio, 2018). Tobacco companies have vital importance for the importance of public health which involves the risk factor. The development of quality product influences the company in the further development of public health policy. This policy deals with trade affairs and generation of policies along with restrictive trade practices. This can help in help in the development of this factor to increase a few policies of the company along with liability and transparency.Risk is the vital factor that involves the factor of uncertainty for the business with the concept and practices. Modelling and simulation of various variables imply knowledge and concept with the management of the problem in the change of business goal that can effectively manage the corporate risk for the company.
M&S is a retail company that has applied the network of risk communication with the modification of a few approaches and the development of risk theory by the company. the change in the development of trade affairs can change the market demand of company with eth help of various target audience. The communication of risk involves economical. Political and social factor in the development of business with the generation of contingency approach to sharing the company information with customers for promotion of a brand. M&S applies the contingency approach for the risk response in the development of threat and opportunities in the market. Various department of retail company design the strategy and plan for risk management which, can be considered as Catastrophes (Alaliet al.,2018). M&S applies a contingency approach that can help in the development of leadership model and the change in the growth of exceptional plan with the development of various consequences. The threat and opportunity deal with the development of risk response that can implement various techniques in the change of expected plan with the development of risk matrix that can help in the determination of threat. Identification of risk involves few factors that can involve the management of risk in the market with the growing demand of company in the market.
Conclusion
It can be concluded from the finding and literature that identification of risk involves few factors that can involve the management of risk in the market with the growing demand of company in the market. Assessment and identification of involve typical strategies and factor in the development of accomplishing resolution to meet the customer needs. Networking Company in market deals with the development of risk matrix that can help in modification and uncertainty with the development of risk that can help in change of business objective.Altria has developed few factors in the identification of risk for its customer with the development of policies in for the alteration of applicant's liability. The implication of agency involves the identification of practical and transparent framework to guide the company in market. Tobacco companies have vital importance for the importance of public health which involves the risk factor. The development of quality product influences the company in the further development of public health policy.
The alteration in the trade policy can enhance the growth of this company in the leading market of tobacco with the change in business objectives. This policy deals with trade affairs and generation of policies along with restrictive trade practices. This can help in help in the development of this factor to increase a few policies of the company along with liability and transparency. This factor enhances few health factors for further modification in business strategies that support the substantial growth of a tobacco organisation such as Altria. The marketing objective if a company can be influenced with the acceptance of various policies with the modification in the development of commercial risk. Identification and assessment of risk involve various factor that can help in the development of scope to forecast the distinct program. M&S applies a contingency approach that can help in the development of a leadership model and the change in the growth of exceptional plan with the development of various consequences. The threat and opportunity deal with the development of risk response that can implement various techniques in the change of expected plan with the development of risk matrix that can help in the determination of threat.
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