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

Substantive post replies:

Post 1:

Hi all,

Amongst the case studies, one of them is the Akawini mining company. The enterprise risk management has not been implemented efficiently at this company; thus, the management cannot possibly handle the protentional risks and future risks, which in turn lead to the company being acquired by United State Minerals and it implemented the new enterprise risk management plan. This United State Minerals follows the ISO standard ISO 31000 and implemented the new risk management plan and following principles are followed which are effective decision-making principles, transparent and inclusive type of principles, dynamic, iterative and responsive principles and continues development and improvement of the company are all security principles followed in risk management plan (Ten Six, 2019).

The performance metrics of the risk management plan are the total number of risks detected in organizational business and by using risk management plan we can detect the number of risks. The cost of risks and the number of closed risks, the total number of resolved risks, and further such metrics determine the performance metrics of the risk management plan. I would like to recommend the performance measures are the cost of risk management, the time taken to resolve the risks, the total risks resolved in each month, and the number of tickets closed in a month and further management performance metrics. By using all these performance measures, we can identify the performance of the risk management plan, and if any issues we can the risk management plan that is implemented in an enhanced risk management plan (Ten Six, 2019).

References

Ten Six. (2019). 7 RISK MANAGEMENT METRICS TO TRACK. Available at:https://tensix.com/2019/02/7-risk-management-metrics-to-track/.

Post 2:

Hi all,

Akawini Copper is the mining company. This company faced some of the business risks and unable to handle the risks properly. For better handling of risks required to develop the better risk management framework is enterprise risk management framework. The United Minerals acquired the Akawini Copper company. The owners of Akawini Copper company realized and need to develop the better risk management plan for risk mitigation. From coast this company plant is 50 kilometers distance and by using trucks for export of material. The total revenue earned by Akawini Copper company is $774 million and the employees in the plant is 1,500 employees.

After acquiree process the United Minerals developed the new risk management framework based on standard is ISO 31000 and developed the risk management plan. According to ISO 31000 it provides the list of principles and guidelines for developemnt of risk management plan. In this risk management plan covered the risks are financial risks, safety risk and project risks. According to ISO 31000 standard the developed risk management plan performs the activities are risk identification, risk analysis, risk evaluation, risk treatment, monitor and review, communication and consultation are the functionalities of risk management plan. In transformation of risk the performance metrics are identification of total number of systematic risks, in risk assessment process areas involved percent, the key risk monitoring percent, percent of key risk mitigation methods, the cost of risk management and closing time of risks in risk management. All are the performance metrics and based on all these metrics evaluate the performance of risk management (logicmanager, 2018).

logicmanager. (2018). Meaningful Metrics: Measuring Enterprise Risk Management Performance. Available at:https://www.logicmanager.com/erm-software/2018/09/05/how-to-measure-your-enterprise-risk-management-effectiveness/.