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ESSAY: Risk Management

After reading this week’s material, answer the following questions in the Forum (In 250 words or more):

The focus of this wee’s reading is risk management. If a company is to be successful, risk management should be a big part of their every day operations. This week, I would like you to present a company and describe at least 1 way that they are managing their risks. You can choose to use the company that you presently work for, but please make sure that you have enough information to fully explain their processes. While you are not required to formally cite your sources within the forum, you should make sure that you are incorporating information from the readings into your responses. Your responses should clearly show that you have read the material.

ANSWER

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Risk Management Techniques

Risk management is a major activity of organizational management that ensures that the organization becomes successful in its businesses activities. Therefore, risk management refers to the process by which a company identifies, assesses, and controls uncertainty to its investment and earnings (Bromiley, McShane, Nair, & Rustambekov, 2015). The risks stem from various sources which range from financial, legal, technological, natural disasters, security or data-related issues. Dell is one of the companies that employ various risk management…

Technology risk is one of the risk areas where Dell Company employs risk acceptance technique to manage it. Dell being a computer and information technology company, it is exposed to the risk of technology change and the emergence of new technologies that threaten its business. Thus, the company accepts that there is a risk and every year it allocates enough finances for research and development as a way of minimizing the technology risk. The company also invests in training its technical staff to…

Operational risk is another business risk that Dell is exposed. The company manages this through mitigation. Dell strives to limit the impact of operational risk so that if the risk occurs it causes less damage to the corporation (Bromiley et al., 2015). This risk management technique is employed in the manufacturing process that involves assembly and functional testing of computer systems. Dell decided to employ flexible build-to-order manufacturing process to enhance fast inventory turnover and…

References

Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk management: Review, critique, and research directions. Long range planning48(4), 265-276.

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