Stakeholder Expectations

Question 1

What stakeholders does the CSFSRS acronym describe?

Answer 1

Customers
Staff
Financiers
Suppliers
Regulators
Society

Question 2

How does the ISO Guide 73 define stakeholders?

Answer 2

A person or group concerned with, affected by or perceiving themselves to be affected by an organisation.

Question 3

Stakeholders don’t always share the same interests. Give an example.

Answer 3

Environmental pressure groups may have interests that conflict with the shareholders of an energy company

Question 4

Relevant stakeholders are entitled to receive information about the risk profile of the organisation. What should this include?

Answer 4

General data (strategy/vision/plan, corporate profile and principle markets)
Financial data (annual report, financial statements
Corporate governance/social responsibility data (CSR policies/compliance with combined code)
Shareholder information (analysis of shareholder size/constituent and directors share dealings)
Relevant news (Access to all news releases and presentations, developments that might affect the share size)

Question 5

Explain how business process re-engineering improves core processes?

Answer 5

Analysis of stakeholders and an understanding of their expectations allows an org to define and refine core processes to meet their requirements.

Question 6

Evaluate the business process re-engineering method of improving core processes

Answer 6

The method can be time consuming however it can help to identify the most vulnerable core processes, and the stakeholders likely to be least satisfied

Question 7

What types of stakeholders are strategic risks most likely to impact?

Answer 7

Major stakeholders including financiers.

Strategic core processes need to be the most robust as poor strategic decisions are most likely to devalue the company

Question 8

What type of risks should tactical stakeholders be most concerned with?

Answer 8

Impact of implementing new technology, changes to production techniques - mainly affecting staff and suppliers.

Question 9

What type of stakeholders are most likely to be affected by interruptions to operational processes?

Answer 9

Customers and Suppliers

Question 10

How do some European companies ensure that stakeholders are involved in their corporate governance?

Answer 10

Staff on the board contributing to decisions.