Organisational Vision and Values Flashcards
Why is the org’s vision and values an important consideration for RM?
It shapes the objectives and turns the process into a practical exercise.
How did Body Shop address risks associated with an unproven market in socially and environmentally responsible brands?
Excellent communication of benefits
How does Coca-Cola translate its objective of ‘sustainable, quality growth’ into practical benefits?
Maximised long-term benefits for the shareholder, through lean and responsive working practices.
Why can it be difficult to justify investment in RM?
The cash value of an event that did not occur is hard to capture.
How can the benefits of RM be quantified?
Key Risk Indicators (KRIs) allow orgs to measure added value of good RM. These can be generic e.g. staff turnover rates or industry specific e.g. No NHS ‘Never Events’
How is ‘added value’ described in the context of RM?
Secure, compliant, legal and competitive operations bringing success that comfortably exceeds the cost of RM activities.
Describe how the character of an org’s objectives might shape its risk emphasis.
Differing sectors will have different areas of focus e.g. retail = brand management, pharmaceuticals = drug efficacy and safety, local authorities = delivery of services, PLCs = shareholder value
Why is it important to consider the geographical aspect of an org in risk management?
Need to understand exposure to environmental risks, legal frameworks, insurance arrangements, local culture.
What is the impact of changing regulatory frameworks such as Solvency II and Basel 3?
Costly governance reforms
