University of Miami Risk Management Essay

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utututu150781349

Business Finance

University of Miami

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Assignment: Operational Risk Assessment (Assignment Instructions) Assignment Guidance: Attached at the bottom of this file is information to help write the paper. It consists of information which coincides with the required deliverables for the assignment. Formatting: Use the 7th edition APA template which I have attached to the question posting and use proper in-text citation. (Please find and use at least three credible references). The paper must consist of seven pages of text. References: (Please find and use at least three credible references). Do Not: Overly use in-text citation or create lots of small paragraphs to take up space on the paper. The paper must look respectable and academic. Assignment Description: The paper must begin with a clear value proposition. Business Proposal You are an independent consultant who specializes in risk management and loss prevention. The management of PK Village Stores LLC has requested a proposal from you for the completion of a Comprehensive Risk Assessment on the entire company's operation. To demonstrate your approach to risk management, you have decided to include a "free sample" in your proposal, consisting on the assessment of three possible risk areas derived from the knowledge you have on the company's operating model. Assignment Requirements: Deliverable Consulting Proposal to be presented to the management of PK Village Stores LLC to prepare a Risk Assessment of their existing operations. The proposal must contain the following elements: • • • • Identification and description of three potential risks that may cause extended disruption in the company’s operations, along with the corresponding characterization in terms of likelihood and severity. Description of three possible mitigation measures for each of the risks identified above that, if implemented, could reduce their exposure (likelihood) and/or impact (severity). Explanation of the process you would follow to identify and assess risks and propose mitigation measures, should your proposal be the one selected for the comprehensive assessment project. Description of the final risk assessment report deliverables (major table of contents items), should you be the chosen consultant. Useful tips: • • • • Search the web for risk assessment frameworks Search the web for consulting proposals Search the web for business continuity planning Search for articles on supply chain disruptions
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7 pages
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Please view explanation and answer below.Hello.This is the paper, based on the initial instructions, above, and where applicable, your outline. The professor's instructions are not supplemental to the original instructions, above. To me, they are new instructions, constituting a new, entirely different task. The initial instructions were clear on what needed to be done. What you just posted requires something totally different.

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PK Village Stores LLC’s Risk Assessment Proposal

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PK Village Stores LLC’s Risk Assessment Proposal
Business leaders must manage risks to ensure that their entities stay in business. For this
reason, most managers believe that risk management is a normal part of governing an
organization. Traditionally, business entities have relied on business unit leaders to deal with
risks within their area of jurisdiction (Beasley, 2020). For instance, the chief technology officer
in an organization would be expected to oversee the risks touching on the information
technology (IT) operations. On the other hand, the treasurer would be expected to manage risks
relating to cash flow and financial factors. Thus each manager plays a distinct role from the other
managers in terms of managing risks in the organization. Most organizations have preferred this
approach, commonly known as silo or stove-pipe risk management (Beasley, 2020). It is given
this name because each silo leader has to oversee risks in their silo. However, business leaders
have realized over the past few decades that this risk management approach has some inherent
risks, including an overemphasis on internal risks and mitigation factors that make it insufficient
to deal with threats considering the dynamic nature of risks that organizations have to deal with.
As such, more and more business leaders are adopting the concept of enterprise risk management
(ERM), intending to solidify the oversight capacity of their organizations (Beasley, 2020). In
addition, ERM can be used as a strategic tool incorporated into the organization's overall
strategic plan. In the same vein, PK Village Stores LLC looks to adopt ERM as part of its
strategic approach. This proposal aims to help PK Village Stores LLC identify some of the risks
it faces and elaborate how risk assessment can be conducted to ensure that the company is well
prepared to deal with any eventualities.

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ERM Value Proposition
When investing in ERM, organizations do it with a value proposition in mind. It is the
best justification for employing ERM as it ensures that shareholders are risk-free and that their
interests are well taken care of if the organization manages risk on their behalf (Woon et al.,
2011). Research shows proper use of risk management influences corporate value. ERM should
help business performance in several aspects, including profit maximization, improving
economic asymmetries, reducing the tax burden, eliminating expensive external financing, and
reducing financial distress cost. ERM can protect organizational value because it helps firms
reach their target rating, avoid huge losses, and deal with volatility in the market. It can also
drive profitability and growth via risk-management approaches to generate revenue and increase
profit and return on equity (Heiligtag et al., 2014). It also encourages calculated risk-taking in
research and development and investments.
Potential Risks
Inventory Damage as a Risk
PK Village Stores LLC assets face the threat of physical damage from various sources.
They include accidental damage and man-made catastrophes such as spilled liquids, electrical
surges, and high...

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