The main essence of this report is to provide an analysis of the Enterprise Risk Management (ERM) of the retail store Walmart that addresses the retail giant’s online space. This paper provides the essential pillars and bases for the applicable ERM programs including risk identification, risk governance, disaster recovery, risk evaluation, and business continuity planning. Two risks, cyber threats and the degradation of reputation are analyzed with respect to ERM. Additionally, this paper addresses the company’s stakeholders, market segments, the current situation regarding ERM, business characteristics, and competition. Since the retail giant lags in online space but leads in physical space, there is a need to address this issue. The paper further identifies the potential solutions to carry out ERM, in addition to a well-detailed list of other risks involved at the retail company.
In the world of business, the Enterprise risk management concept involves the processes and techniques applied by firms in risk management and the seizure of opportunities regarding achieving their goals and objectives. A risk management framework is provided by ERM which normally consists of the identification of certain circumstances or events relevant to the objectives of the organization, assessing the events factoring in the magnitude and potential of impact, assessing a strategy for a response, and monitoring approaches. With the identification and analysis of opportunities and risks, organizations can create value and protect their relevant stakeholders including the customers, owners, and the overall community. The ERM approach may also be identified as a risk-based technique for enterprise management, one that integrates internal control concepts and strategic planning.
For each organization, different strategies of ERM have to be applied all depending on a company’s complexity, nature, and size. Mammoth corporations the likes of Walmart necessitate a process that is simplified and one that can mitigate and evaluate the many risks faced by the company. In the company’s ERM plan devised in the 1990s, the five-step approach was formulated based on four basic queries. The first query seeks to identify the risks, the second seeks to identify the course of action with regard to the risks, the third query seeks to find answers on the type of measurements to be conducted to identify whether the risk has a negative or positive impact on the business, whereas the fourth query main aim is to find answers on how well the firm can demonstrate stakeholder value.
The five-step procedure starts with the identification of risks, where a risk map is applied in the risk evaluation based on an XY-axis, where the Y-axis shows impact and the X-axis shows probability, an approach crucial in the prioritization of Walmart’s potential risks. The second step involves the mitigation of risks. In this step, five of the most significant risks are defined further in a mitigation workshop. In the workshop, the individuals most affected by a certain risk are accorded the chance to participate. The main essence of these workshops is the reduction of the managers’ workload. To achieve this, a procedure inventory is conducted for measures already in existence to cope with specific risks. The third step involves action planning, where the project teams formulate activities plans, setting out the deadlines. In the fourth step, performance metrics are formulated to measure the performance of the ERM process, and finally, a Return on Investment or Shareholder Value analysis is conducted to identify the significance of the ERM process on the business at large.
Enterprise Risk Management Committee (May 2003). “Overview of Enterprise Risk Management”. Casualty Actuarial Society: 8. Retrieved from https://www.casact.org/research/erm/overview.pdf. Retrieved 20 October 2019.
PLACE THIS ORDER OR A SIMILAR ORDER WITH GRADE VALLEY TODAY AND GET AN AMAZING DISCOUNT