Risk Management Plan Research Assignment Paper (Case Study Sample)

Risk Management Plan
Name
Institution
Risk Management Plan
Commercial enterprises aim at maximizing outputs while minimizing costs. They look forward to achieving a huge customer base that consequently results in high profitability (Cohen et.al, 2013). In this regard, two cases studies were used, and a comprehensive analysis was conducted regarding legal and ethical challenges, regulatory compliance, and potential impacts of legal, safety, environmental, and financial risks. Legal challenges comprised of corporate challenges, disputes, assets, and regulatory risks. Ethical issues in businesses are products of existing rules and regulations prevailing in organizations, customer satisfaction, and managerial structures. Moreover, the cases provided an exhaustive evaluation of challenges that arise in instances where organization's internal changes are brought to the public domain. Political influences affecting management decisions in organizations include government policies and regulations, taxation, trade policy, and employability. In the two public cases, there were both instances of support and opposition to the decisions made by these institutions. The two public cases involved Marks and Spencer Company and UBS financial firm.
Over 1,800 UBS volunteers in the United Kingdom participated in the decision-making process in banking since 2003. They contributed to over 21,500 hours in bridging all related activities in UBS financial firm ("Case study: Banking on achievement | Business in the Community," 2012). Besides, there was a significant opposition in Marks and Spencer from customers. Factors that contributed to the opposition included a ban on the use of free bags, attempt to mainstream consumer behavior, and poor customer perception towards ethics in business. Marks and Spencer Company noted that there was a need to mainstream clients and dictate the kind of services they would access ("Marks & Spencer and Influencing Consumer Behavior | Business in the Community," 2011). Uncertainly, management decisions may either result in initiative risks or boost the stability of organizations.
Legal and Ethical Challenges
Legal Challenges
Businesses have numerous options in defining the organizational structures upon which goals and objectives are to be set. The two public cases are good examples of organizations facing legal challenges. First, there are corporate challenges where the organization management fails to agree on best measures to address customer needs. The latter is also influenced by the set government regulatory procedures that guide performance of the institutions. In solving these corporate challenges, the two organizations should define and comprehend the pros and cons of their organizational structures and adopt a corporate managerial style that promotes legally accepted business decisions and practices. Second, the assets of these companies are facing risks; tangible assets include things such as buildings while intangible assets include human capital and intellectual expertise. Third, disputes have been identifiable legal risks between management and customers. In the case of Marks and Spencer Company, customers were contented with the introduction of free courier bags only to face a blow after the company's top management decided to abolish the use of these bags. Their argument was based on the hazardous effects these bags were impacting on the environment ("Marks & Spencer and Influencing Consumer Behavior | Business in the Community," 2011). Lastly, there were regulatory risks where the public cases had to obtain credentials for their operations. In a case where the two cases experienced a withdrawal of licenses, their economic value and stability would be adversely affected.
Ethical Challenges
There are various notifiable ethical risks in the two public cases. There is a broad range of issues raised by customers regarding the integrity and performance of respective institutions. Additionally, it was the responsibility of the top management to understand the needs of their clients. The UBS financial firm did not effectively eradicate poverty among disadvantaged people in the given society due to ethical concerns that revolved around people's perception towards financial services and consumer behaviors ("Case study: Banking on achievement | Business in the Community," 2012). Ethical issues in businesses are also products of rules and regulations prevailing in organizations, customer satisfaction, and managerial structures. Undoubtedly, the people in the case of UBS financial firm felt unfairly treated in their quest for fairness and what they perceived as a form of justice for the alleviation of poverty. Therefore, in ensuring that ethical practices are upheld, an organization and its customers must exercise transparency and accountability towards holistic growth and productivity.
Approaches to Legal Compliance
In ensuring legal compliance, a company should fully engage itself in various activities that include collaboration and coordination, evaluation of security measures, documentation of efforts, and management of information. Collaboration and coordination activities intend to ensure a continued and synergized flow of all actions in a company. Moreover, these activities aim at making sure all departments work together to address any rising or potential risk in management. Involvement of central authorities such as the IT should be done harmoniously through the enactment of viable compliance measures. In the evaluation of security measures, a company should regularly encourage its employees from all the respective departments to brainstorm all the possible ways through which critical information and data could be compromised, and then define the means to tackling the problem. Additionally, a firm should examine the existing security obligations and improve the technological expertise that will eliminate any cases of security jeopardy. Documentation of efforts is a corporate responsibility that a company should entirely engage itself into, for optimal performance. The latter provides room for improvement and proper allocation of responsibilities. Moreover, documenting customer and employee efforts is significant during awarding of loyal clients and designation of suitable compensation plans among workers. Management of information provides a scenario where the latter is easily accessed and controlled. The managed information should be transparent and account for all important files in the company.
Methods of Mitigating Ethical and Legal Risks
In regulating and controlling risks, a company should design a documented risk mitigation framework. The latter serves a tool to which both ethical and legal challenges are addressed and solved. First, there should be formal signoffs by the affected bodies. By so doing, it becomes easier for a company to reduce time and costs of mitigation and ensures sufficient cooperation across all departments. Second, in mitigating risks, the firm has an obligation of enacting a compliance personnel code of conduct that will allow for periodic reviews of important progress visa-vi the set plans. Third, there should be equity in information sharing between the management, its employees, and the customers. The latter eliminates privacy and builds on confidence and trust towards the organization. Lastly, regular audits should be conducted including self-assessments that play a fundamental role in mitigating ethical and legal risks.
Potential Impacts of Legal, Safety, Environmental, and Financial Risks
In the public cases provided, legal risks included corporate risks, disputes, asset risks, and regulatory challenges. Identifiable ethical risks resulted from customer dissatisfaction and internal management instability. On the other hand, environmental risks were associated with adoption of free courier bags that led to environmental degradation since these bags were hazardous to the natural ecosystem. Marks and Spencer Company introduced free carrier bags as a way of attracting more customers. Later on, the company's administrators complained that the bags were hazardous to the environmental ("Marks & Spencer and Influencing Consumer Behavior | Business in the Community," 2011). Consequently, their use was banned. In the UBS financial firm that had been endowed with the task of elevating living standards of low-income families in society, the success rate was significantly low despite all the investments that had been injected into the project.
Nevertheless, there are various costs associated with these risks. First, there are costs of entry when a company decides to venture its operations into the society. This cost is often paid when the companies are trying to establish a suitable risk management plan. Moreover, these risks also result from the application of techniques, training of customers, and tools used. Therefore, as a way of dealing with costs of entry, organizations should invest in infrastructure as a way of supporting risk mitigation measures. The staff must be well trained to deal with all customers favorably. Secondly, other costs are attributed to damages and maintenance. In the case of Marks and Spencer Company, the administrators banned the use of free courier bags that had been fully embraced by their customers. The company was in danger of losing its loyal clients who had shown much satisfaction with the use of these bags ("Marks & Spencer and Influencing Consumer Behavior | Business in the Community," 2011).
Thirdly, there are risk assessment costs that arise during implementation of risk mitigation process. They include time spent in regulatory evaluation and resources utilized. Lastly, addressing costs during risk reduction were evident in the two public cases. The companies had a responsibility to win people's trust and confidence. Moreover, they were to meet customer sa...