2. WHY SUDDENLY THERE IS
INCREASED FOCUS ON RISK
IN CORPORATE?
Today’s business world is constantly changing—it’s
unpredictable, volatile, and seems to become more
complex every day. By its very nature, it is fraught with
risk.
Historically, businesses have viewed risk as a
necessary evil that should be minimized or mitigated
whenever possible.
In recent years, increased regulatory requirements have
forced businesses to expend resources to address risk.
Shareholders have begun to scrutinize whether
businesses had the right controls and risk control
measures in place.
The increased demand for transparency around risk
has not always been met or met in a timely manner.
3. As evidenced by the Financial market
crisis, where the poor quality of
underlying assets impacted the value
of investments.
In the current global economic
environment, identifying, managing, a
nd exploiting risk across an
organization has become increasingly
important to the success and longevity
of any business.
4. Aspects of Risk
Managements
Risk Management is increasingly
recognized as being concerned with
both positive and negative aspects of
risk.
Generally recognized that
consequences are only negative and
therefore the management of safety
risk is focused on prevention and
mitigation of harm.
5. The focus of good risk management is the
identification and treatment of risks.
Its objective is to add maximum sustainable
value to all the activities of the organization.
Risk Identification
Risk Description
Risk Estimation
Risk Analysis methods and Techniques
Risk Profile
Risk Evaluation
6. Governance over the risk assessment
process must be clearly established.
Risk assessment begins and ends with
specific objectives.
Effective risk assessment requires a
consistent
approach, tailored to the organization.
7. Potential Risk to a Passenger
Car Company
In the course of CAR business, Firms are exposed to a
variety of market and other risks including the effects of
demand dynamics, commodity prices, currency exchange
rates, interest rates, as well as risk associated with financial
issues, hazard events and specific assets risk.
Business Risks
The automotive industry is very capital intensive. Such
investments require a certain scale of operation to generate
viable returns. These scales depend on demand. Competition
in Design, content, layout and performance of vehicles of
Passenger Cars.
Health and Safety Risks
Labor Management Risk
Supply Chain Risk
Product Risk
Technology Risk