Workplace Flashcards
Exists when one party engages in risky behavior knowing it’s protected because another party will incur resulting loss (insurance)
Moral Hazard
Describes factors from internal and external sources. It is coordinated activities to direct control of an organization with regard to risk
Risk Management
Uncertainty on objects, it is potential of what could happen
Risk Effect
Ability to not just withstand high impact events or shocks but to improve and benefit from them
Anti-Fragility
Structural, Cognitive, Cultural
Barriers to Risk Management
Strategy, Operations, Financial Reporting, Compliance
ERM Framework of Risk Categories
Two Activities in ISO 31000 Process
Communication and Consultation / Monitor and Review
Agent makes decisions on behalf of principal, but has personal incentives that may not be aligned
Principal-Agent Problem
Influenced by two opposing sets. Exemplified in both moral hazard and principal-agent problem
Conflict of Interest
Steps and organization should take to ensure health, safety and well-being of employees and protect them from foreseeable injury
Duty of Care
PAPA Model
Prepare, Act, Park Adapt
Eliminate Uncertainty - Taking steps to guarantee positive risks will happen and negative will not
Optimize (+) / Avoid (-)
Redefine Ownership - Responsibility for financial costs and operations
Share (+) / Transfer (-)
Employ levers to increase or decrease effect - Seek to change amount of risk through levers
Enhance (+) / Mitigate (-)
Take no action - Ignore possible opportunity and accept occurrence of threat
Ignore (+) / Accept (-)
HQ has control over subsidiaries. Management tends to share same ethnic background, different than subsidiaries
Ethnocentric
Subsidiaries have independence, if profitable
Polycentric
Grouped into regions. Coordination within regions but not between
Regiocentric
A team each contributes knowledge
Geocentric
Emphasizes consistency and common corporate culture
Global Integration
Emphasis on adaptation, makes organization more flexible
Local Responsiveness
Low GI + Low LR. Coordinated federations
International Strategy
Low GI + High LR. Decentralized federations
Multi-domestic strategy
High GI + Low LR
Global Strategy
High GI + High LR. Glocalization
Transnational Organization structure
Long term investments and train executives in global perspectives
Strategic Systematic
Short Term Expenses don’t integrate WWOps leads to higher rate of failures
Tactical Reactive
Anyone that is not a citizen of the country in which they reside and doesn’t intend to become one
International assignee
Four layers and dimensions of diversity
Personality, Internal dimensions, external dimensions, organizational dimensions
Enacted by legislatures and rules designated to implement and interpret statutes are promulgated by administrative agencies
Statutes
Defined powers of the different federal goverment branches and how these entities operate and interrelate
Constitution
Type of liability insurance covering an organization against claims by employee’s former employees and employment candidates alleging their rights have been violated
Employment Practices Liability Insurance
