Chapters 26 through 29 presented four mini-case studies on ERM and risk. Each one presented a slightly different risk scenario. Assume that you have been asked to advise the Akawini management team on
Shiva Kumar Pagadala
week 13 Discussion
COLLAPSE
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Risk management is the process involved in identification, assessment, and control of possible threats to a business enterprise. The threats target the earnings and the capital of the organization. The threats arise from financial uncertainty, strategic management errors, legal liabilities, accidents and natural disasters. Organizations also experience IT security risks, risks associated with management strategies, and data-related risks. Akawini should therefore use performance measures in developing and monitoring of business risk management (Hopkin, 2018). The performance measures are used to measure the strategies of the Akawini business operations. It will also provide information on the existing gaps between the actual business performance and the targeted performance. It will also be important in determining the how Akawini is effective and efficiency of their operations.
The key performance measures that I would recommend for Akawini are like qualitative and quantitative indicators, leading and lagging indicators, input, process, and output indicators, tangible measures, flexible measures, and standardized measures. Qualitative measures are based the qualities or characteristics rather than quantity value. Quantitative measures are based on quantifiable data such as counts, percentages, rations and objectives. A combination of the two performance measures can provides a more holistic performance picture (Si et al., 2017). The leading measures also use their predictive nature to give warning. They can therefore be important to Akawini enterprise in highlighting the expected overall performance level change to trigger monitoring. Lagging indicators will be important in providing insights of possible failure or success of a product upon completion.
The input, process, and output indicators will also be useful in evaluating an end-to-end process for Akawini. The input indicators will measure the resources used in activity execution, while process indicators will serve in efficiency or productivity measurement. On the other hand, output indicators also measure the process or activity result. Other measures such as flexible performance measures involve various adjustments to various changes in risk and organization landscape (Parmenter, 2019).
References
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.
Parmenter, D. (2019). Key performance indicators (No. 1, pp. 1-xxxi). Wiley,.
Si, S. L., You, X. Y., Liu, H. C., & Huang, J. (2017). Identifying key performance indicators for holistic hospital management with a modified DEMATEL approach. International journal of environmental research and public health, 14(8), 934.
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Prashanth Kumar Belde
Discussion Board
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Assume that you have been asked to advise the Akawini management team on how they should promote and monitor the transformation of risk management in their business. What performance measures would you recommend Akawini to use so that they can monitor progress and performance?
In the Akawini management, the team should be knowing how they need to promote the transformation of the risk management in the business and the exchange cost fluctuates dependent on the capacity prerequisites, unpredictability, utilization, and data transfer capacity. The expense of exchange in risk management depends on the square size. Be that as it may, these two rivals each other similarly. They contrast dependent on the reason; Bitcoin is considered as a substitute wellspring of money or the computerized cash while ethereum gives the distributed applications and agreements through the own money vehicle. This is the explanation risk management has been considered as the steadiest computerized type of money while ethereum is the more intelligent agreement application (Scott, 2014).
Risk management was surrounded to go about as the installment technique as well as it runs over the decentralized brilliant agreements without the chance of any vacation, extortion, oversight, or the outsider obstruction. The convention of risk management has been worked to permit the adaptability and furthermore to build the usefulness that gives the capacity to program different kinds of keen agreements that are available inside the Ethereum framework. With the blockchain investigation, one can ready to follow the exchanges make by an individual while paying or buying a specific assistance or item with the digital currency like the risk management. It was intended to shape the safe method of installment technique that is distributed decentralized (Scott, 2014).
As everything is shown over the open edge, the blockchain gives the sure method of exchange that is real and the prerequisite to confide in the gathering that has been arranged. Bitcoin works dependent on the verification of-work strategy to make the squares and add them to the blockchain that one ought to settle through complex scientific procedures. This will ensure that the information gets very troublesome just as costlier that helps in the counteraction of the extortion and unsafe movement in light of the cost that has been associated with the formation of the square (Scott, 2014).
References
Scott, B. (2014). Using Risk Transformation to Improve Business Performance. Retrieved from,
https://deloitte.wsj.com/riskandcompliance/2014/04/15/using-risk-transformation-to-improve-business-performance/
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