Preview

Turnaround and Down with Richard Brown: Eds 1999-2003

Satisfactory Essays
Open Document
Open Document
303 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Turnaround and Down with Richard Brown: Eds 1999-2003
1. What are the pros and cons of implementing an Enterprise Risk Management System?

The pros of implementing an Enterprise Risk Management System are to forecast potential risks and prevent significant risks and work with the company’s culture to achieve the entity objectives.
The cons of implementing an Enterprise Risk Management System are involved with too many resources, sometimes it is quite time consuming and hard to determine the possibility of the risks.

2. Use COSO’s eight ERM components – Internal Environment, Objective Setting, Event Identification, Risk Assessment, Risk Response, Control Activities, Information and Communication, and Monitoring ---to evaluate EDS’ risk management processes under Brown. Prepare a report using Simons’ (1999) risk exposure calculator to assess EDS’ internal environment and Simon’s levers of control when discussing their control activities.

Using Simons’ (1999) risk exposure calculator:
Part one:
Growth = Pressures for performance + Rate of expansion + Inexperience of key employees
= 4+4+1 = 9
Culture = Rewards for entrepreneurial risk taking + Executive resistance to bad news + Level of internal competition
= 4+4+5 = 13
Information Management = Transaction complexity and velocity + Gaps in diagnostic performance measures + Degree of decentralized decision making
= 5+4+1 = 10
In a total, the risk is 32. It falls into the caution zone.

3. Why did Brown fail? Was he just unlucky in the aftermath of 9/11 or were EDS’ issues more systemic?

There are two reasons that Brown failed. The first one is too focus on the short-term profit and did not pay attention to the long-term. Brown sacrificed the long-term profit to achieve a short-term boom. The second one is that he did not listen to other people’s advice towards the targets. He was just executive resistance to bad news.
No, he wasn’t. No matter whether 9/11 happened or not, his strategy would

You May Also Find These Documents Helpful

  • Satisfactory Essays

    The factors that are most important in the creation of an organization’s culture include founders’ values, preferences, and industry demands. A company’s culture, particularly during its early years, is inevitably tied to the personality, background, and values of its founder or founders, as well as their vision for the future of the organization. It is shaped in the early days of a company’s history. When entrepreneurs establish their own businesses, the way they want to do business determines the organization’s rules, the structure set-up in the company, and the people they hire to work with them. While founders undoubtedly exert a powerful influence over corporate cultures, the industry characteristics also play a role. Industry characteristics and demands act as a force to create similarities among organizational cultures. For example, despite some differences, many companies in the insurance and banking industries are stable and rule oriented, many companies in the high-tech industry have innovative cultures, and companies in the nonprofit industry tend to be people oriented.…

    • 437 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Bsbpmg510A Kbq

    • 635 Words
    • 3 Pages

    Risk Management: While a new process or equipment may seem desirable this is not always the case due to the risks involved whether it be financial or otherwise. All these risks must be kept to a minimum through risk analysis in the planning and brainstorming phases or the new project could have a detrimental effect on the business or individuals.…

    • 635 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    RAR Template 07112007 3

    • 5647 Words
    • 25 Pages

    The <System Name> risk assessment was conducted in accordance with the methodology described in National Institute of Standards and Technology (NIST) Special Publication (SP) 800-30, Risk Management Guide for Information Technology Systems. The methodology used to conduct this risk assessment is qualitative, and no attempt was made to determine any annual loss expectancies, asset…

    • 5647 Words
    • 25 Pages
    Powerful Essays
  • Good Essays

    The employer should carry out suitable and sufficient risk assessments and put control measures in place. If need be, competent persons may be engaged to enable the employer implement these measures. Staff shall be provided information on risks and the employer shall see that employees ate trained and competent to carry out all…

    • 853 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    BSD115 Business Brief

    • 718 Words
    • 3 Pages

    An entrepreneurial culture allows innovation and change to occur in order to adapt to a changing external environment (Samson & Daft, 2012, p. 330 & 32). This can be achieved through the creation of a new product/service, or innovation of existing product/service (Schaper & Volery, 2007, p. 400). By doing so, a competitive advantage can be created within a marketplace. To encourage creativity, managers need to establish an internal organizational culture of freedom, ownership, participation, support and failure embracement (Turley, 2011, p. 22-23; Samson & Daft, 2012, p. 331). This also means the organisational structure has to be flatter and flexible in order to allow knowledge and ideas to pass horizontally between departments. This approach results in a cross-fertilization of ideas and in doing so, it promotes a better response to consumer demand and ensures quicker delivery of new products or services (Innovation is more than just a good idea, 2008; Samson & Daft, 2012, p. 336). A flat structure also limits hierarchical levels and provides lower-level employees with decision-making power (Samson & Daft, 2012, p. 30-31). Having a right entrepreneurship culture is a critical element in the long-term success of any organisation (Schaper & Volery, 2007, p. 401).…

    • 718 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    ISSC363 Assignment 3

    • 586 Words
    • 2 Pages

    Conducting a thorough risk assessment is certainly one of the top priorities in the overall risk management program. It is a process of identifying and evaluating the risks that can have a negative impact on an organization. Once the risks have been successfully captured, they can be assessed and prioritized according to the severity of their potential impact. While every organization should have a continuous risk management program, a risk assessment is conducted at a given moment in time, and as such should be repeated on some predetermined schedule to reevaluate the risks and adjust as appropriate. To conduct an effective risk assessment, it’s important to be able to fundamentally describe of the purpose of a risk assessment, risk scope and identify critical areas for an assessment. Additionally, a methodology that is appropriate for the risk assessment should be selected.…

    • 586 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The "Enterprise Risk Management - Integrated Framework" (2004) website describes the eight interrelated components of an Enterprise Risk Management system that include internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring. A formal risk assessment has been performed that have identified several potentially serious risks that could expose the company to substantial liability, they are…

    • 2248 Words
    • 9 Pages
    Better Essays
  • Better Essays

    Before developing a risk management plan an analysis of risk needs to be performed. This analysis should include all aspects of the project that may be part of an uncertain event or condition that may have a positive or negative effect on the project objectives and outcome. The overall goal is to work to address any type of risk before they become problematic. Analyzing and relaying the level and probability of the risk to the stakeholders, sponsors and project team can help in reducing mistakes that can be cause for project failures. Some common mistakes that can be overlooked when analyzing risk, is not understanding the benefits of a risk management plan, not allowing time for risk management, not properly identifying and assessing risk.…

    • 1195 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Corporate turnarounds are almost never engineered by a single person. A CEO who takes a failing company and makes it successful again obviously has help from management, a board, along with customers and shareholders. The vision for how a company can change and the execution skills to put the vision to work begin with the chief executive.…

    • 3844 Words
    • 10 Pages
    Better Essays
  • Powerful Essays

    Week 10 Technical Paper

    • 2283 Words
    • 10 Pages

    Every organization is faced with some risk or potential threat that could cause an interruption to the organization’s operations. These risks and threats can come from within or outside of the organization. To prepare for the worst that could happen, organizations must focus their attention on how to assess different types of risks to protect the organization from the possible negative effects to the daily operations. Performing a risk assessment is one of the most important steps in the risk management process (eHow, 2011).…

    • 2283 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Enterprise risk management (ERM) has become a critical practice in organizations that are dedicated to managing uncertainty and its effect on achieving organizational objectives. ERM helps organizations focus on the most relevant risks to achieving an organization’s goals and objectives, both from an operational, as well as a strategic, perspective. How much risk an organization assumes—either knowingly or unwittingly— plays a large part in whether that uncertain future outcome actually improves or worsens the organization’s position. It is therefore crucial for an organization to define and determine its Risk tolerance levels since it will help the organization make major decisions based on what has determined to be acceptable risk.…

    • 1635 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Implementing documented processes for managing risk that supports the organization’s mission and goals aids leaders give employees and consumers self-assurance in the organization. Directors and senior leadership benefit from fostering functional collaboration promoting accomplishment of its programs among departments (Jones & Cotta, 2009). Risk management allows a facility to nurture a work environment that encourages growth through training and education reduces risk. Organizational strength demonstrates innovative decision-making and openness to change. Nurturing a work environment that encourages growth through training and education reduces risk (Chee, Kamal, & Wingender, 2011).…

    • 1687 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Komatsu Case Study

    • 475 Words
    • 2 Pages

    I believe Tanaka dealt with the issues pretty well with a good strategy to get away from overall growth and focusing on profits. Although his strategy was well planned, Tanaka lacked the leadership that would have made him more successful. He did well in terms of profit, but failed to compete on market share against CAT, as had been the norm of his predecessors.…

    • 475 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Business Failure Paper

    • 430 Words
    • 2 Pages

    This paper will discuss how organizational behavior theories could have predicted or can explain the failure of a company. Businesses face many challenges which can contribute to the growth and demise of the business, According to recent article publish in gaebler.com, 2010 most business large or small fail due to bad investment, lack of knowledge, lack of planning and so forth. Although size contributes to the damage of society due to the demise of a business small business such as mom and pop stores may show little effect due to small staff, small inventory and small investment. Whereby, large business can cause large percentage of unemployment to the country, high crime rate, and even suicide. Let’s examine a large company like Enron whom loss billion when it collapse in 2001.…

    • 430 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Honeywell

    • 1283 Words
    • 6 Pages

    A decision has to be taken on the adoption of the new Enterprise Risk Management Program considering its cost implication and savings offered in perspective of adequate coverage of all risks. This decision could well lead on to establishing long term Risk policy for Honeywell as well as whether this integration approach would be suitable for Honeywell. This case identifies the benefits of integrating risks and shows how such an approach might be valuable. Honeywell has diverse variety and variant degree of risks. Given this, how should its risk be managed?…

    • 1283 Words
    • 6 Pages
    Powerful Essays

Related Topics