Think about all the ways, both large and small, that leaders affect an organizat

Question

Think about all the ways, both large and small, that leaders affect an organization’s culture and goals. In an example described in the magazine The Economist, Howard Schultz, CEO of Starbucks, decided that Starbucks should strive to be a “third place” in its customers’ lives, after only home and work (“The New Oases,” 2008). This directive influences all aspects of the organization, from the decoration of stores to the attitudes of employees. The governance of an organization will also affect its risk management strategies both directly and indirectly. Factors like organizational structure or culture can affect how a given organization assesses and approaches risk. In this Discussion, you will evaluate your own experiences to more fully understand the factors that determine how organizations manage risk.Consider an organization where you work or one with which you are familiar, and think about how the culture and structure of that organization affects its approach to risk management.

Briefly describe the organizational structure (governance). This should include elements of culture, internal and external stakeholders, and the impact of the role of certain stakeholders on the organization’s risk management approach.

Describe the organization’s approach to risk management.

Describe the advantages and disadvantages of its approach.

Make one or more recommendations on how you would improve its approach.

Explanation / Answer

Answer:

Question 1- Briefly describe the organizational structure (governance). This should include elements of culture, internal and external stakeholders, and the impact of the role of certain stakeholders on the organization’s risk management approach.

Answer1: In our company, the organization structure is the staffing of employees for managing and executing the business operations in the organization. The employees are divided into departments/functions with the need of specific skill sets needed to achieve department level objectives/goal.

Culture Element -The behavioral and environmental culture of the organization.

Internal stakeholders – Employees and management of the organization

External Stakeholders – Board of directors, investors, customers.

The organization’s risk management approach is basically influenced by the board of directors and the senior management team of the employees. The approach is affected by them. These stakeholders have a significant impact on the risk management approach of the organization. They align the risk management process with the buying of the business culture and direction of key stakeholders.

Question 2- Describe the organization’s approach to risk management.

Answer2: The organization’s approach to risk management is defined as the process of risk management in the organization. Our organization follows the involvement of management in risk analysis and risk management. The management organizes a cross functional meeting to discuss the risks together and work out the best possible strategies and solutions for managing the business risk such that the business objectives are met with lowest possible impact to the organization. This is a cross functional decision along with management involvement.

Question 3- Describe the advantages and disadvantages of its approach.

Answer 3:

Advantage of approach:

Disadvantage of approach:

Question4- Make one or more recommendations on how you would improve its approach.

Answer 4: The risk management approach could be improved by below approach

New Approach: Periodic preventive risk investigation and management approach in the organization will help to identify the risk in preventive approach and initiate the necessary action in advance so that the actions can be taken well in advance and the risk can be managed effectively. This process will help in on time management of risk and avoiding any adverse impact on the business due to risks in the businesses.

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