Assignment: Risk Mitigation Strategies

Assignment: Risk Mitigation Strategies

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Assignment: Risk Mitigation Strategies

Question Description
Risk Mitigation StrategiesAccording to the article presented by EY (“Turning risk into results,” 2013), “Our point of view is that companies with more mature risk management practices out perform their peers”. Our client experience, research and study results strengthen that perspective.” (“Turning risk into results,” 2013, p. 1). This suggests that companies that development an ERM (Enterprise Risk Management) plan -have a much better chance of managing and mitigating their business risks. So what should DRD do to mitigate these risks? EY suggests a three-prong approach which includes (1) focus on ERM (2) reducing the cost of controls (3) create value (“Turning risk into results,” 2013). Additionally, EY’s research recommends that business risks should be communicated internally and externally ensuring employees and stakeholders are made aware of the risks, risks and their acceptance levels are identified and tracked and controls are in place to capture and communicate metrics regarding the risks, and that technology is leveraged to monitor and report risks (“Turning risk into results,” 2013). Examples of Risk Mitigation StrategiesSpecifically, for DRD, this means that they may need to establish new processes to track, monitor, manage, report and communicate their risks (1) competition (2) income (3) products (4) sales distribution channels. Each risk should be owned by someone in the company responsible for monitoring and tracking specified metrics which they will measure against acceptable risk tolerances (“Turning risk into results”, 2013). Examples of metrics that DRD may need to track is the increase in the number of new competitors. This metric may help them determine at what point they believe competition could eroding their market share. In addition to developing the risks, and devising risk tolerance metrics, they need to develop a risk mitigation strategy for each risk so that they are prepared with an action plan and know when to execute it.. Conclusions In order to turn “risks” into “results”, EY has identified a multifaceted approach including; Enhanced Risk Strategy, Embedded Risk Management, Optimized Management Functions, Improve Control Processes, Enable Risk Management Communication ((“Turning risk into results,” 2013). Setting up and ERM program for many companies is very complex, due to the size and distribution of employees. However, in this case, I believe DRD actually has an advantage – as they are a small family run business with limited staff. I believe the key for DRD is to assign clear ownership of the risks, devise metrics to track, monitor and report on them, and to ensure risks are effectively communicated to employees and stakeholders.ReferencesBeamish, P (2016). Deep Roots Distillery. Richard Ivey School of Business Foundation (2016-03-09 ).Pride, W. M., Hughes, R. J., & Kapoor, J. R. (2017). Foundations of business (5th ed.). Boston, MA: Cengage Learning.Turning risk into results – How leading companies use risk management to fuel better performance (2013). Retrieved from www.EY.COM Please complete on the study attached

Summarize the risks the company is exposed to.

What strategies can the company use to mitigate these risks or turn them into opportunities?

http://www.ey.com/Publication/vwLUAssets/Turning_r…

ATTACHMENTS Case study

Assignment: Risk Mitigation Strategies

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