The company I chose is Amazon Then, select 1 of thecontempo...

Question

The company I chose is Amazon  Then, select 1 of thecontemporary manag...

Accepted Answer

Contemporary management technique listed Enterprise Risk Management Organizations take risks all the time but fail to monitor and manage risk effectively for the enterprise A cavalier approach to risktaking results in disaster providing case studies for future generations on how poor risk management leads to the demise of corporations even those with strong brands Gone are the years of simplicity in business operations Exponential growth and change in risks regulations globalization distributed operations projects strategy processes competitive velocity technology and business data encumbers organizations of all sizes Keeping this complexity and change in sync is a significant challenge for boards executives as well as risk management professionals throughout the business Organizations need to understand how to monitor risktaking whether they are taking the right risks and whether risk is managed effectively Enterprise Risk management in this context is an integrated part of everyones job and not just for the back office of risk management The modern organization is Distributed Even the smallest of organizations can have distributed operations complicated by a web of global supplier agent business partner and client relationships The traditional brick and mortar business with physical buildings and conventional employees have been replaced with an interconnected mesh of relationships and interactions which define the modern organization Complexity grows as these interconnected relationships processes and systems nest themselves in intricacy Dynamic Organizations are in a constant state of flux as distributed business operations and relationships grow and change At the same time the organization is trying to remain competitive with shifting business strategies technologies and processes while keeping pace with change to risk environments around the world The multiplicity of risk environments that organizations have to monitor span regulatory geopolitical market credit and operational risks Managing risk and business change on numerous fronts has buried many organizations Disrupted The explosion of data in organizations has brought on the era of Big Data and with that Big Risk Data Organizations are attempting to manage high volumes of structured and unstructured data across multiple systems processes and relationships to see the big picture of performance risk and compliance The velocity variety veracity and volume of data is overwhelming disrupting the organization and slowing it down at a time when it needs to be agile and fast Understand the Interrelationship of Risk and Its Impact Enterprise risk management is often misunderstood misapplied and misinterpreted as a result of scattered and uncoordinated approaches Risk is pervasive there are a variety of departments that manage risk with varying approaches models needs and views on what risk is and how it should be measured and managed These challenges come at department and process levels and build as organizations develop operational and enterprise risk management strategies Risk management silos where distributed business units and processes maintain their own data spreadsheets analytics modeling frameworks and assumptions pose a major challenge Documents and spreadsheets are not equipped to capture the complex interrelationships that span global operations business relationships lines of business and processes Individual business areas focus on their view of risk and not the aggregate picture unable to recognize substantial and preventable losses When an organization approaches risk in scattered silos that do not collaborate there is no opportunity to be intelligent about risk as risk intersects compounds and interrelates to create a larger risk exposure than each silo is independently aware of A siloed approach fails to deliver insight and context and renders it nearly impossible to make a connection between risk management and business strategy objectives and performance It can be bewildering to make sense of risk management and its varying factions across enterprise operational project legalregulatory thirdparty strategic insurance and hazard risks This makes enterprise and operational risk management a challenge when risk management strategy forces everyone into one flat view of risk to conform and have significant issues in risk normalization and aggregation as they rollup risk into enterprise risk reporting Providing 360 Contextual Awareness of Risk Managing risk effectively requires multiple inputs and methods of modeling and analyzing risk This requires information gathering risk intelligence so the organization has a full perspective and can make better business decisions This is only enabled through strong business intelligence and analytics with a user experience that is intuitive and relevant to varying levels of the organization This is an important part of developing a risk analysis framework Mature risk management is built on a risk management process information and technology architecture that can show the relationship between objectives risks controls loss and events In light of this organizations should consider Does the organization understand the risk exposure to each individual processproject and how it interrelates with other risks and aggregates in an enterprise perspective or risk How does the organization know it is taking and managing risk effectively to achieve optimal operational performance and meet strategic objectives Can the organization accurately gauge the impact risk has on strategy performance project process department division and enterprise levels Does the organization have the information it needs to quickly respond to and avoid risk exposure and also to seize riskbased opportunities Does the organization monitor key risk indicators across critical projects and processes Is the organization optimally measuring and modeling risk Gathering multiple perspectives on risk is critical for producing effective relational diagrams decision trees heat maps and scenarios This risk intelligence comes from The external perspective Monitoring the external environment for geopolitical environmental competitive economic regulatory and other risk intelligence sources The internal perspective Evaluating the internal environment of objectives projects risks controls audits loss performance and risk indicators and other internal data points Organizations are best served to take an enterprise and federated approach to risk ....

The company I chose is Amazon. Then, select 1 of the contemporary management techniques listed in...

90.2K

Verified Solution

Question

Accounting

The company I chose is Amazon. Then, select 1 of thecontemporary management techniques listed in Chapter 1 of theBlocher et al. text. Why and how do you feel that the contemporarymanagement technique selected would be a positive force in helpingthe company achieve its critical success factors??

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students

Calculate the molality, molarity,and mole fraction of NH3 in an 14.60 mass % aqueous solution (d...

You have isolated a protein, JAMP (Just A Membrane Protein), from the plasma membrane of a...

500 WORDS MINIMUM!! a) Define Pay Structure. Discuss why pay structure is an essential component of compensation...

Give your personal opinion about Miranda V Arizona case

Two identical circular loops each of radius r carrying currents i and i are placed...

8 Two mountain peaks R and T can be observed from an alpine meadow To...

8 of 13 30 area 6 Resources Find the area of the given region The...

Select the different types of transformations you can have with a function:Select one or more:a....

Rudd Clothiers is a small company that manufactures tall-mens suits. The company has used a...

Assume another product line is also being considered bookshelves. Only use this information for...

The firm's target capital structure is the mix of debt, preferred stock, and common equity...

Sarah is single and self-employed realtor and is 42 years old. Her rental income is...