This week, you will finalize your marketing plan for your selected product or service. In preparing for Part II, you may have to consider some of the suggestions made by the instructor in Part I feedb

RISK MANAGEMENT REPORT 11

Risk Management Report

Name

University

Professor

10/12/2020

Extract

A business can't run without experiencing challenges and threats. Sometimes the challenges are beyond the entity mitigation measures and efforts. Threats that require consultancies services and assistance contribute to the critical threats for the organization. This paper explores the dynamic and change of technology as a crisis to the old-fashioned business entities. It specifically assumes a case of cyber-crime for a company leading to a loss of data and money through hacking. The proliferation of the technology and the capabilities brought to the collapse and decline of the traditional methods of working. It will also focus on the positive and negative implications of technology on the business.

Introduction

A business crisis is experienced when the stability of the business organization or the company is at risk. The threat can either originate from within the business or without. The internal or external business environment can pose a crisis of untold magnitude. These issues may escalate to the point that the management and the entire fraternity cannot resolve it. In case the problem is not curbed, it may lead to the collapse of the enterprise (Tan & Tan, 2012). However, adopting and implementing crisis management personnel entitled to promptly work on any potential crisis at the onset is prevalent and predominant. These teams anticipate a threat and offer possible solutions in case of an occurrence.

The coming of the technology brought a huge threat to the existence of the traditional methods and styles of management and workflow. Computerization of tasks and the shift from the manual to automation posed a huge threat to not only the employees but also the business leaders. The advancement of technology and other capabilities in the business arena has become inevitably critical. Companies have to adapt to new marketing solutions. Decisions on the new investment opportunities and stiff competition are worth a change. These are phenomena that had not been imagined by the business. They are beyond the business capabilities and talents and need an external aspect to resolve them. The CEOs are inadequately inclined to solve the dynamic challenges and technological threats.

Business Crisis

This report is based on a company that suffered a crisis of data and money loss through the criminal access of the company system through hacking by cyber-criminal. The leaders who were highly implicated by the crisis included the human resource manager as most of the data about the employees’ profile was lost. The finance manager was also involved and the company CEO. Technological threats occur when the business is hit by the need to automate and change its operations to incorporate scientific innovations to solve their problems in better and less costly ways. The technology is highly dynamic and practically the businesses need to respond and move by the changes (Sherman, 2014).

This is a real problem as the company may be unaware of and unprepared for the change. Other times the threat may be caused by the already installed system that may be rendered obsolete or even not functional. Consultancy becomes the final resort especially when the business cannot resolve the threat. Most of the current business entities are digitally operated. Information management systems have been installed and the companies are computerized. Nevertheless, this creates an even bigger risk to management. The threats range from cyber-crimes to the breakdown of the systems causing huge risks and resources to the business. The business may arise to a loss of money over the cyber-crimes and another hacker related criminal activities. The breakdown of the system causes a huge loss of data, money, and time. The companies have to be ready for the occurrence of such a problem.

Ethical implications

The use and application of technology are value-laden by the way it is commercialized and disseminates a spectrum of commitments on values that commence on individual autonomy and freedom, fairness, and transparency. The technology should be developed on a more ethical based performance and interaction. The technology assumes the values of access and the simplicity and freedom may cause an issue during its use. The firms and organizations should involve ethical choices in the use of technology. The technology affects business ethics by assuming some paramount procedures and access to technology by the customers. For example, the use of mobile phone tracking by the business to sell their products highly overlook the aspect of consent and affordability of the product by the potential customers (Park, 2011).

The drones watch what is needed by the people at different places and delivery is done. Technology has repercussions, test norms, acts for us, make biased decisions, and sometimes change what we do. It also threatens individual privacy, autonomy, and violate other rights of people. Causes physical and financial harm to the people and companies. They are also ethically contentious by influencing societal norms and personal values. Technology does not offer any attention to the managerial norms and culture of the organization. Machine learning offers business automation leading to a lack of recognition of the societal norms. Data biases may lead to discrimination of different people based on race and gender. The incorporation of the automated programs should be evaluated to create accommodate all the stakeholders in a business setting.

It has become prevalent that technology firms have a moral obligation to address challenging assumptions resulting from the outcome of the innovations in technology. The companies are entitled to ensure adherence to societal and business ethics to address various issues in the business. These efforts are evident especially from big firms like Google where they are setting policy standards for responsibly using artificial intelligence. Online marketing creates a platform that does not abide by the regulations of affordable and appropriate product promotion ethics. Data aggregation violates consumers’ privacy and desired consent.

Effects of crisis on SWOTT of the company

During the mitigation of the crisis, it is relatively important to note that the company has to incur an additional expense on various capabilities. The strengths of the business in terms of the personality, teams, and training of the individuals to align them with the adequate skills to deal with the challenge is vital. The firms will only use such strengths to solve issues. Tangible assets that include the capital, other technologies, and the machinery were highly threatened as the company attempted to revert the situation. Due to the deficit in the technical training, the company had to consult from the external experts in solving the crisis.

The mismanagement of the installed computer systems highly contributed to the perpetration. However, the crisis brought a new opportunity to the company as it had to train the leaders to ensure that they were equipped with adequate knowledge in case of a similar occurrence. A new direction was set and the company adopted a more encrypted system. Through consultancy services, the company increased its customers and created more networks. New functionality was added to the existing system which added to the opportunities of the company. New technology and its effects were the main threat that was caused by the crisis. During the crisis, most of the customer services were threatened. Consequently, the reputation of the company was tarnished and many customers had to seek services from elsewhere.

As a leader, I would portray the knowledge and experience in crisis management across the business. Being consistent with the methods of solving a crisis is an important quality of a leader. Showing strong values and corporate characteristics in key. Tracking the risk data and analyzing them is another way to show a clear view of the crisis. Being proactive in identifying risk prevention and mitigation solutions and examining their efficiency is critical. Individual accountability in coordinating the process of mitigation exhibits the capability of the leader. The leader should also create and attempt the various solution possibilities to provide a less costly way of curbing the problem.

Risk management process

Risks are likely to occur at different times and situations of the business. How the companies can move through a crisis is attributed to the effective and modern leadership. As a leader, it is paramount to learn and evaluate the available possibilities to prevent and prepare for the occurrence of a crisis (Hopkin, 2018). To manage any risk in a business setting, the following steps are followed:

Identify the risk. Using the entitled team of risk management, the first step is to expose, acknowledge, and explain the risk that is likely to hit the company and its outcomes. This risk may be among others, financial, operational, strategic, and hazard risks. The company can identify the risks through research, consultancy, or industry professionals. Brainstorming through groups could also be applied. The steps should be regularly revisited due to the frequent changes of the peril environment.
Measure the magnitude and severity of the risk. The likelihood of the risk occurrence should also be determined. Hit maps can be used to achieve the latter. This will help to identify which perils are likely to happen or not. The possible impacts should as well be weighed. With the knowledge of the frequency and likelihood of occurrence, the company can allocate time and resources to the relevant priorities.
Examination of the alternative measures. The possible solutions should be weighed and the most cost-effective and likely to solve the problem chosen. Affordability and efficiency should be the main focus in the selection. Acceptance of the risk is critical to solving it and realizing that the risks are inherent to the business. The company may take an insurance cover to transfer the peril to another party.
Choosing the best measure and implementation. At this point, the solution has arrived through proper consultation. The implementation phase should be the next step. Allocation of staff and funding to the implementers is embarked. A plan should be set and signed by the manager or the leader involved to ensure accountability. An implementation process is essential to ensure logical and consistent procedures for successful mitigation.
Monitoring the results. The process is not an initiative that should be forgotten. There should be a regular check of whether the expected outcome was achieved. It is vital to determine whether any update is needed to add on the project or not. Effective communication among the implementers of the mitigation process should be maintained.

Implementation of the risk management plan

To ensure successful implementation, the acquisition of the required machinery was done, new computers had to be purchased and the installation of a more encrypted system. The company had to employ consultancy services from external experts. The flow of resources was the second consideration. Any required material or assistance by the implementers was provided at the minimum time. This ensured a continuous and timely mitigation process. The company was ready with the resources to resolve the crisis. The optimum output is expected when the implementation is done clearly and effectively. Once the resources are available and ready to be put into the process, the coordination should be the core aspect of focus. This is done to ensure every input is executed whenever it is needed at a minimum cost. An operational plan should be drafted and daily oversight ensured. Finally, reporting the results followed by regular retrieval should have adhered.

Ways of identifying and managing uncertainties in a corporate environment

Be ready and prepare for numerous consequences. The business should always be prepared to face any outcome with resources and time.
Revisit the business plan. Refine the plan and adjust the strategy to accommodate the occurrence of any risk or threat. The value proposition should be changed and SWOT analysis should be done.
Ensure retention of the quality of the product and services offered by the enterprise. This will ensure the growth and relevancy of the business to its customers.
Keep the cash flow in order. The projections, tax estimates, and profit margins should be well put and recorded. This will reduce the impulse costs incurred due to the occurrence of uncertainty. It helps the company to control debts and costs.
Expand products and services. It is vital to operate a wide range of products as an assurance of continuity in case one fails. Complimentary products should be offered (Townsend, et al. 2018).

References

Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

Park, Y. K. (2011). The Dynamics of Opportunity and Threat Management in Turbulent Environments: The Role of Information Technologies. ProQuest LLC. 789 East Eisenhower Parkway, PO Box 1346, Ann Arbor, MI 48106

Sherman, H. J. (2014). The business cycle: growth and crisis under capitalism. Princeton University Press.

Tan, J., & Tan, A. E. (2012). Business under threat, technology under attack, ethics under fire: The experience of Google in China. Journal of business ethics, 110(4), 469-479.

Townsend, D. M., Hunt, R. A., McMullen, J. S., & Sarasvathy, S. D. (2018). Uncertainty, knowledge problems, and entrepreneurial action. Academy of Management Annals, 12(2), 659-687.