27 Aug Read the following announcement https://www.wsj.com/articles/amazon-adds-revenue-streams-as-holiday-season-approaches-11661091352?reflink=desktopwebshare_permalink Name the risk types used
Read the following announcement
https://www.wsj.com/articles/amazon-adds-revenue-streams-as-holiday-season-approaches-11661091352?reflink=desktopwebshare_permalink
Name the risk types used by the company, in a table attached in Microsoft words, that describes the Cause-Event-Effect; include anticipated consequences. (table)
Part of your response may be your own opinion based on the details of the article. In addition, were these good risk decisions? (280 words)
Name the "risk types" Amazon used, in a table, that describes the Cause-Event-Effect; include anticipated consequences. we discussed these in class 23 August and covered them in the provided power-points. Part of your response may be your own opinion based on the details of the article. In addition, were these good risk decisions?
|
Risk Type |
Cause |
Event |
Effect / Consequences |
|
Risk Reduction |
|||
|
Risk Transfer |
|||
|
Risk Avoidance |
|||
|
Risk Reduction |
|||
|
Risk avoidance |
,
Introduction to Risk Management
Mana.6330
Overview
Risk Management is the continuing process to identify, analyze, evaluate, and treating loss exposures and monitoring risk control and financial resources to mitigate the adverse effects of loss.
Enterprise Risk Management, expands the province of risk management to define risk as anything that can prevent the company from achieving its objectives.
Risk Management Overview
| Operational | Reputational | Business | Cyber |
Corporate Risk can be defined in four categories.
The four basic types of risk management to consider:
Risk Avoidance
Risk Reduction
Risk Transfer
Risk Retention
Risk Items that can produce CRISIS
Economic: Events or situations like strikes, market crashes, and labor shortages.
Informational: Loss of important information (organizational records, public and confidential records), theft through phishing attacks, social engineering, leaking of sensitive data.
Physical: Comprised major equipment, loss of suppliers disruption in key operations.
Human Resources: Loss of key team members, vandalism, and/or workplace violence.
Reputational: Rumors/gossip hurt the reputation of the organization.
Psychopathic: Terrorism, kidnapping, tampering with products.
Natural Disasters: Tornadoes, earthquakes, fire, flash floods, disease outbreaks, etc.
CRISIS is the final step of Risk, taking no action for risk mitigation
The Stages of Crisis Management
Stages of Crisis Management
Pre-Crisis
Crisis Response
Post-Crisis
Prevention and preparation, i.e., reducing the known risks that can lead to crisis.
When management must respond to a crisis.
The post-mortem phase is when companies look for ways to better improve preparations for the next crisis as well as fulfill commitments made during crisis response.
Risk “…risk has always been with us.” Thomas Aquinas
Risk: “…the possibility that events will occur and effect the achievement of objectives.”1
This the typical definition which should alert the reader to the fact that both qualitative and quantitative probabilities are required in the recognition of risk.
1 COSO 2017
Risk Fundamentals
Perception of risk is subjective.
Risk approach is driven by a tendency to look backwards.
Observation is the key to “risk”.
“Cause and Effect” which is the most common approach.
Thought must be expanded to “Cause – Event – Effect (or the Consequence)”
Example of Cause and Effect
| Year | Cause | Event | Effect |
| 2001 | Rise of Islamic fundamentalism; failure of intelligence; inadequate air defense systems; lax of airport security | World Trae Centre (9/11) terrorist attack | 3,000+ deaths in the WTC; second Iraq war; global security crackdown. |
| 2010 | Defective cement on the well; cost-cutting decisions; inadequate safety systems; inadequate industry practices and government policies | BP Deepwater Horizon, Macondo well | Total discharge at 4.9 million barrels; clean-up costs, charges and penalties more than $65 billion; disaster for the ecology |
Risk Fundamentals continued
Risk management is critical in enhancing resilience, that is the ability to anticipate and respond to change.
Strategic Resolutions are part of the daily understanding running a business is making choices and trade-offs.
Risk management is not just involved in assessing the project and the details, but involved in response development and response controls and making sure that contingency plans are adequate if a high-impact event or events happen.2
2. Mastering Risk Management,pg.17
Risk Fundamentals continued
Risk Management is as much about continuous improvement and increasing the range of opportunities, as about threats and hazards.
Management of a firm is driven by its objectives.
Understanding risk will force clarity in the objectives
Embed risk management within the firm
Build and align the culture of the firm.
Provides structure, internal controls and reduce ineffectiveness
Consistent and continuous risk process
Risk Fundamentals continued
Risk Management approach for resolution:
Identify the risk
Assess the risk
Treat the risk
Monitor and report on the risk
Risk Concepts within the Organization
Five factors to consider in all Risk:
Corporate Strategy
Supply Chain Organization
Process management
Performance Metrics
Information and Technology
Risk Concepts within the Organization continued
Another approach to Risk management can be defined as once the “event” occurs how does the company respond:
Risk Avoidance: withdrawing from a risk scenario or deciding not to participate
Risk Reduction: keep risk to an acceptable level and reduce severity of loss
Risk Transfer: risk can be reduced or made more acceptable if it is shared
Risk Retention: accepting risk and accounting for it in budgeting
Migso-pcubed.com/blog/pmo-project-delivery/four-step-risk-management-process/
,
Introduction to Risk Management
Mana.6330
Overview
Risk Management is the continuing process to identify, analyze, evaluate, and treating loss exposures and monitoring risk control and financial resources to mitigate the adverse effects of loss.
Enterprise Risk Management, expands the province of risk management to define risk as anything that can prevent the company from achieving its objectives.
Risk Management Overview
| Operational | Reputational | Business | Cyber |
Corporate Risk can be defined in four categories.
The four basic types of risk management to consider:
Risk Avoidance
Risk Reduction
Risk Transfer
Risk Retention
Risk Items that can produce CRISIS
Economic: Events or situations like strikes, market crashes, and labor shortages.
Informational: Loss of important information (organizational records, public and confidential records), theft through phishing attacks, social engineering, leaking of sensitive data.
Physical: Comprised major equipment, loss of suppliers disruption in key operations.
Human Resources: Loss of key team members, vandalism, and/or workplace violence.
Reputational: Rumors/gossip hurt the reputation of the organization.
Psychopathic: Terrorism, kidnapping, tampering with products.
Natural Disasters: Tornadoes, earthquakes, fire, flash floods, disease outbreaks, etc.
CRISIS is the final step of Risk, taking no action for risk mitigation
The Stages of Crisis Management
Stages of Crisis Management
Pre-Crisis
Crisis Response
Post-Crisis
Prevention and preparation, i.e., reducing the known risks that can lead to crisis.
When management must respond to a crisis.
The post-mortem phase is when companies look for ways to better improve preparations for the next crisis as well as fulfill commitments made during crisis response.
Risk “…risk has always been with us.” Thomas Aquinas
Risk: “…the possibility that events will occur and effect the achievement of objectives.”1
This the typical definition which should alert the reader to the fact that both qualitative and quantitative probabilities are required in the recognition of risk.
1 COSO 2017
Risk Fundamentals
Perception of risk is subjective.
Risk approach is driven by a tendency to look backwards.
Observation is the key to “risk”.
“Cause and Effect” which is the most common approach.
Thought must be expanded to “Cause – Event – Effect (or the Consequence)”
Example of Cause and Effect
| Year | Cause | Event | Effect |
| 2001 | Rise of Islamic fundamentalism; failure of intelligence; inadequate air defense systems; lax of airport security | World Trae Centre (9/11) terrorist attack | 3,000+ deaths in the WTC; second Iraq war; global security crackdown. |
| 2010 | Defective cement on the well; cost-cutting decisions; inadequate safety systems; inadequate industry practices and government policies | BP Deepwater Horizon, Macondo well | Total discharge at 4.9 million barrels; clean-up costs, charges and penalties more than $65 billion; disaster for the ecology |
Risk Fundamentals continued
Risk management is critical in enhancing resilience, that is the ability to anticipate and respond to change.
Strategic Resolutions are part of the daily understanding running a business is making choices and trade-offs.
Risk management is not just involved in assessing the project and the details, but involved in response development and response controls and making sure that contingency plans are adequate if a high-impact event or events happen.2
2. Mastering Risk Management,pg.17
Risk Fundamentals continued
Risk Management is as much about continuous improvement and increasing the range of opportunities, as about threats and hazards.
Management of a firm is driven by its objectives.
Understanding risk will force clarity in the objectives
Embed risk management within the firm
Build and align the culture of the firm.
Provides structure, internal controls and reduce ineffectiveness
Consistent and continuous risk process
Risk Fundamentals continued
Risk Management approach for resolution:
Identify the risk
Assess the risk
Treat the risk
Monitor and report on the risk
Risk Concepts within the Organization
Five factors to consider in all Risk:
Corporate Strategy
Supply Chain Organization
Process management
Performance Metrics
Information and Technology
Risk Concepts within the Organization continued
Another approach to Risk management can be defined as once the “event” occurs how does the company respond:
Risk Avoidance: withdrawing from a risk scenario or deciding not to participate
Risk Reduction: keep risk to an acceptable level and reduce severity of loss
Risk Transfer: risk can be reduced or made more acceptable if it is shared
Risk Retention: accepting risk and accounting for it in budgeting
Migso-pcubed.com/blog/pmo-project-delivery/four-step-risk-management-process/
,
Introduction to Risk Management
Mana.6330
Overview
Risk Management is the continuing process to identify, analyze, evaluate, and treating loss exposures and monitoring risk control and financial resources to mitigate the adverse effects of loss.
Enterprise Risk Management, expands the province of risk management to define risk as anything that can prevent the company from achieving its objectives.
Risk Management Overview
| Operational | Reputational | Business | Cyber |
Corporate Risk can be defined in four categories.
The four basic types of risk management to consider:
Risk Avoidance
Risk Reduction
Risk Transfer
Risk Retention
Risk Items that can produce CRISIS
Economic: Events or situations like strikes, market crashes, and labor shortages.
Informational: Loss of important information (organizational records, public and confidential records), theft through phishing attacks, social engineering, leaking of sensitive data.
Physical: Comprised major equipment, loss of suppliers disruption in key operations.
Human Resources: Loss of key team members, vandalism, and/or workplace violence.
Reputational: Rumors/gossip hurt the reputation of the organization.
Psychopathic: Terrorism, kidnapping, tampering with products.
Natural Disasters: Tornadoes, earthquakes, fire, flash floods, disease outbreaks, etc.
CRISIS is the final step of Risk, taking no action for risk mitigation
The Stages of Crisis Management
Stages of Crisis Management
Pre-Crisis
Crisis Response
Post-Crisis
Prevention and preparation, i.e., reducing the known risks that can lead to crisis.
When management must respond to a crisis.
The post-mortem phase is when companies look for ways to better improve preparations for the next crisis as well as fulfill commitments made during crisis response.
Risk “…risk has always been with us.” Thomas Aquinas
Risk: “…the possibility that events will occur and effect the achievement of objectives.”1
This the typical definition which should alert the reader to the fact that both qualitative and quantitative probabilities are required in the recognition of risk.
1 COSO 2017
Risk Fundamentals
Perception of risk is subjective.
Risk approach is driven by a tendency to look backwards.
Observation is the key to “risk”.
“Cause and Effect” which is the most common approach.
Thought must be expanded to “Cause – Event – Effect (or the Consequence)”
Example of Cause and Effect
| Year | Cause | Event | Effect |
| 2001 | Rise of Islamic fundamentalism; failure of intelligence; inadequate air defense systems; lax of airport security | World Trae Centre (9/11) terrorist attack | 3,000+ deaths in the WTC; second Iraq war; global security crackdown. |
| 2010 | Defective cement on the well; cost-cutting decisions; inadequate safety systems; inadequate industry practices and government policies | BP Deepwater Horizon, Macondo well | Total discharge at 4.9 million barrels; clean-up costs, charges and penalties more than $65 billion; disaster for the ecology |
Risk Fundamentals continued
Risk management is critical in enhancing resilience, that is the ability to anticipate and respond to change.
Strategic Resolutions are part of the daily understanding running a business is making choices and trade-offs.
Risk management is not just involved in assessing the project and the details, but involved in response development and response controls and making sure that contingency plans are adequate if a high-impact event or events happen.2
2. Mastering Risk Management,pg.17
Risk Fundamentals continued
Risk Management is as much about continuous improvement and increasing the range of opportunities, as about threats and hazards.
Management of a firm is driven by its objectives.
Understanding risk will force clarity in the objectives
Embed risk management within the firm
Build and align the culture of the firm.
Provides structure, internal controls and reduce ineffectiveness
Consistent and continuous risk process
Risk Fundamentals continued
Risk Management approach for resolution:
Identify the risk
Assess the risk
Treat the risk
Monitor and report on the risk
Risk Concepts within the Organization
Five factors to consider in all Risk:
Corporate Strategy
Supply Chain Organization
Process management
Performance Metrics
Information and Technology
Risk Concepts within the Organization continued
Another approach to Risk management can be defined as once the “event” occurs how does the company respond:
Risk Avoidance: withdrawing from a risk scenario or deciding not to participate
Risk Reduction: keep risk to an acceptable level and reduce severity of loss
Risk Transfer: risk can be reduced or made more acceptable if it is shared
Risk Retention: accepting risk and accounting for it in budgeting
Migso-pcubed.com/blog/pmo-project-delivery/four-step-risk-management-process/
