Northwestern College Enterprise Risk Managment Paper

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u123

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Northwestern College

Description

You are a Consultant tasked with creating an ERM for an organization.  You can choose an organization you are familiar with, your own organization or make one up.  

In your 4-5 paged paper include the following requirements:

  • Discuss the organization and reason for selecting it.
  • Explain 2-3 potential risks in the organization that led to an ERM being implemented.
  • Describe the proposed ERM solution components. Include timelines, resources, visualizations, etc.
  • Discuss the benefits and challenges with the proposed ERM.

Explanation & Answer:
4 pages
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Explanation & Answer

Attached.

Running head: ERM

1

ERM
Student’s Name
Date
University Affiliation

ERM

2

General Electric Company
This is an American company located in New York City, with its headquarter in Boston. Since
2018, the company diversified its operations to incorporate segments such as aviation,
healthcare, power, renewable energy, finance, digital industry and lightning. The company ranks
18th in the United States. The club since 2018 has been the profitable company but has since
severely underperformed in the market making its profit to collapse. The company has to
continue to face numerous obstacles in the market, for example in 2019, the company was
accused by Ponzi scheme of being bigger fraud than Enron. The company was reported to have
been involved in $38 million fraud. Also, the company has been accused of displaying
insufficient reserves for long term care policies. Fitch Rating report in 2019 alleged that the
General Electric Company has not set aside a sufficient amount to cover for its long term care
liabilities. Finally, in 2017, General Company acquired a 62.5% interest in Baker Hughes. The
following year the company reduced its interest to 50.4% leading to the realization of a $2.1
billion loss. In response, Mr Markopolos reported an anticipated $8 billion loss upon disposition
of the Baker Hughes (Ocasio, & Joseph, 2018).
Reason for selection
The company is of interest due to the risk it is facing lately. One of the most profitable company
in 2017 is on the verge of collapsing by 2020. It is for this reason I have chosen the organization
to try and come up with necessary Enterprise Risk Management strategies to help salvage the
situations. There is a need for proper planning and controlling various activities of General
Electric Company to minimize the impacts of the identified allegations on the company’s capital
and earnings.

ERM

3

Explain 2-3 potential risks in the organization that led to an ERM being implemented
The company has faced serious and numerous allegations which have leads to loss of profits in
the marketing industry of the General Electric Company. The first accusation was reported in
2019 by Fitch Ratings. The findings alleged that the General Electric Company the company has
not set aside enough money to cover for its long-term projects and care liabilities. A court filing
was done in 2018 by participants in General Electric 401 thousand plan and shareowners for
violating Section 11 of the Security Act 1963. The lawsuit alleged misstatements and omissions
by insurance reserves and the general performance index of various General Electric Company’s
segments.
The second risk allegation against the General Electric Company was filled in 2017. Mr
Markopolos in his statement argued that its oil and gas business with Baker Hughes
Incorporated. It was alleged that in 2108 th...


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