Project Scenario:

After graduating from X College the members of your group have obtained employment with an established Risk Management Consulting firm with expertise in modeling Enterprise Risk Management Frameworks and Processes for a wide variety of organizations specifically in their Operations and Supply Chain Management activities. There are two parts to the project, the first is an enterprise-wide Risk Assessment which requires the Consultants (each team) to review operations and supply chain risks. This approach to risk assessment includes the identification, analysis and assessment of each risk faced by the organization. This process considers a broad spectrum of risks, including those relating to four main categories of risk including:

1. Compliance risks

2. Hazard risks

3. Control risks

4. Opportunity risks

The causes and the consequences of each risk are considered and, where appropriate, linked to strategic and tactical objectives. The second part of the project is a Risk Management Plan. Management controls to monitor and mitigate risks are documented. Risk owners are assigned to each risk. The risk response is based upon the assessment of potential risk exposure and the level of acceptable tolerance. The response reflects whether the organization accepts the risk based on its assessed level of exposure and mitigating controls currently in place, where possible, or reduce the risk through additional mitigation to bring it in line with required levels of tolerance. As with any business, the chosen organization faces risks and uncertainties daily. It is the effective assessment and management of these risks that places the organization in a better position to be able to achieve their strategic objectives.

Question: Briefly describe the following question:

Organizational Risk Assessment - needs to complete the following for each of the four risks (at least one in each risk category):

a) Description of the risk and how it affects the organization

b) Explanation of why the risk is in that risk category

c) Explanation of the likelihood and impact of the risk on the operations and supply chain

d) Made a recommendation & conclusion combining each types of risk.