Enterprise Risk Management

To maintain financial stability, businesses cannot afford to let unforeseen areas of risk remain unidentified. Liability lawsuit outcomes, distribution channel issues, and dependence on technology are just a few of the risks businesses must evaluate regularly, as discussed in Chapter 3.

Assignment:

1. Identify a small, local business that could benefit from a risk management analysis.
2. Interview a manager to identify the companys biggest concerns. Ask what they worry about in the business, and what worst case scenario could jeopardize their finances.
3. Write a 2-3 page paper that summarizes your manager interview and the topics below.
4. Share your findings and recommendations with the manager you interviewed.

Evaluation criteria:

Score	Points
	15	Using the internet, your textbook or any other resources, discuss enterprise risk management programs (include sources): What is it? How does it benefit business organizations?
	15	Summarize your interview with a small business manager: What type of business are you evaluating? Are they concerned with risk management?
	15	Describe one area of large potential loss for this small business: What potential loss could cause financial harm to the business? How much money could the loss cost the business?
	20	Evaluate the current risk management practices of the organization for the identified risk area: What is the business doing to protect itself from the loss? Is insurance available to pay for any possible losses? Does the business have insurance? Is it enough insurance?
	15	Recommend ways to improve the management of risk: What can you suggest to the business to avoid loss? What is the cost to improve the risk situation?
	5	Research sources are identified
	15	Prepare a written risk management analysis that recommends helpful advice and provides value to the manager/owner you interviewed
	100	Total Points