SCMG301 Week 5 DQR
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5/4/23, 6:17 AM W5: Risk Management Frameworks - SCMG301 B001 Spring 2023
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W5: Risk Management Frameworks
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Week 5 Discussion: Risk Management Frameworks
CO5: Gain knowledge on emerging risk management frameworks along with tools, techniques and approaches
Discussion Prompt:
1. Several elements are required of successful ERM systems. Take a look at this video on Enterprise Risk Management, which offers an overview of ERM.Section five details some requirements of successful ERM’s. Choose and summarize two of these elements. Could one of these be more important than another?
2. Ch. 10 offers examples of probabilistic modeling. How does scenario planning at DuPont offer an example of a company becoming outward looking in managing supply chain risk?
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5/4/23, 6:17 AM W5: Risk Management Frameworks - SCMG301 B001 Spring 2023
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Week 5 Jonathan Gonzalez Jonathan Gonzalez posted May 3, 2023 10:11 PM Subscribe
Aloha Classmates and Professor;
Reference 1: In the video on business risk management; section five discusses two
important elements necessary for successful ERM systems. The first element is a
conscious culture of risk, which implies creating a mentality throughout the organization
that recognizes and includes the importance of risk management. The second element is
solid communication and collaboration, which guarantees that information and ideas are
shared effectively at all levels and departments of the organization (Risk Management
Association, 2017)
Reference 2: Chapter 10 of the book "Management of corporate risk a common framework
for the entire organization" provide examples of the probabilistic model, which provides for
the use of statistical techniques to generate simulations of potential results based on
different scenarios. This can help organizations identify and evaluate different risks and
evaluate the potential impact of these risks on their operations and financial services
(Fraser&Simkins 2016)
Reference 3: Dupont is an example of a company that has become external in the risk
management of the supply chain through scenario planning. Dupont developed a system
called Marco Dupont Integrated Risk Management (IRM), which implies analyzing different
scenarios and developing strategies to manage potential risks. In doing so, Dupont has
been able to identify possible supply chain risks and develop strategies to mitigate these
risks, thus improving its general risk management capabilities (Dupont, N.D.).
It is difficult to determine which of the two elements mentioned in the first reference is
more important than the other since both are crucial for the success of an ERM system. A
conscious culture of risk guarantees that risk management is integrated into the strategy
and general operations of the organization, while sold communication and collaboration
guarantee that ideas and information are effectively shared throughout the organization,
what which is crucial to identify and manage risks. Both elements are interconnected and
strengthen each other, and both are necessary for a successful ERM system.
The planning of the scenario in Dupont, as discussed in the 3rd reference, is an example of
how an organization can become external in the management of the risk of the supply
chain. By analyzing different scenarios and developing strategies to manage potential
risks, Dupont has been able to improve its overall risk management skills and ensure that
its supply chain is more resistant to potential interruptions. This approach can help
organizations become more proactive in the management of the risk of the supply chain
and ensure that they are better prepared for unexpected events
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References:
Fraser, J., & Simkins, B. (2016). Enterprise risk management: A common framework for the
entire organization. John Wiley & Sons.
Very Respectful
Jonathan Gonzalez
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Week 5: ERM Marshall Williams posted May 1, 2023 5:44 PM
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Last post yesterday at 3:59 PM
by Cody Privette
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Hello class,
For our week 5 discussion we were asked to watch a video on Enterprise Risk Management
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Dorvil: W5: Risk Management Frameworks DOMINIQUE DORVIL posted May 1, 2023 10:13 PM Subscribe
Policy and reporting structures are two essential elements of successful Enterprise Risk
Management (ERM) systems. The policy provides the framework for identifying, assessing,
and managing risks. At the same time, the reporting structure ensures that information
about risks is conveyed to the appropriate decision-makers promptly and accurately.
Policy refers to the written guidelines and rules that set out the organization's approach to
risk management. A comprehensive policy will define the scope of risk management,
outline the roles and responsibilities of those involved, and establish the risk management
framework, including the risk appetite and tolerance levels.
Reporting Structures refer to the processes by which risks are identified, assessed, and
reported throughout the organization. These structures ensure that risks are effectively
communicated to decision-makers and that appropriate action is taken to manage them.
5/4/23, 6:17 AM W5: Risk Management Frameworks - SCMG301 B001 Spring 2023
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Last post yesterday at 3:35 PM
by Cody Privette
Both policy and reporting structures are important elements of an ERM system, as they
provide a foundation for effective risk management. However, if I had to choose one, I
would say that policies are perhaps the most important element. Policies provide the
framework and guidance for how risks should be identified, assessed, and managed within
an organization. They establish the tone from the top and set the expectations for risk
management practices throughout the organization.
DuPont's scenario planning approach, which incorporates external events and factors that
may impact its supply chains, is an example of the company becoming outward-looking in
managing supply chain risk. Scenario planning involves identifying potential future
scenarios that could impact the organization and developing strategies to address those
scenarios. By actively incorporating external events and factors in its scenario planning
approach, DuPont is stress-testing its supply chain and preparing for potential disruptions
before they materialize, which helps to mitigate the risk and maintain operational
continuity. Furthermore, by involving stakeholders in the scenario planning process,
DuPont has developed a shared understanding of the risks it faces and a risk-aware culture
within the organization.
- Dorvil
Enterprise Risk Management - Introduction Training (2008) -
https://www.youtube.com/watch?v=QgyiRWcZYS4
Schlegel, G. L., & Trent, R. J. (2014). Supply Chain Risk Management: An Emerging
Discipline. Boca Raton: Taylor & Francis Group.
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WK 5 Cody Privette posted May 3, 2023 3:07 PM Subscribe
Hello Class,
After watching the YouTube video, I chose Policy from the Hard element and Performance reviews from the motivational element. To manage risks, companies establish policies that outline specific actions for everyone to follow. These policies establish a plan for determining acceptable levels of risk and assigning responsibilities to those key individuals. As for Performance Reviews, Regular check-ins are crucial to ensuring the effectiveness of our risk management system. These reviews allow us to identify areas for improvement and assess the overall progress of the process. During these evaluations, it is essential to cover all aspects of risk management, including risk identification, response, and monitoring. It also enables better decision-making by sharing feedback with senior management to ensure continuous improvement of the ERM system.
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Determining the more significant factor for an ERM system to function effectively can be challenging. Both factors are of utmost importance and should not be overlooked.
Following the devastating 2008 financial crisis, In order to effectively manage their supply chain, DuPont recognized the importance of considering external factors that may pose potential disruptions. As a proactive measure, they implemented a scenario planning system that enables them to prepare for a range of unforeseen events such as natural disasters, political instabilities, or economic slumps. By utilizing this approach, DuPont remains flexible and capable of responding to unexpected situations by conducting thorough analyses of various scenarios and developing contingency plans. This proactive strategy serves to prevent supply chain disruptions and ensures smooth and uninterrupted operations, even in the face of challenging circumstances.
Cody
Schlegel G L & Trent R J (2014) Supply Chain Risk Management: An Emerging Discipline Boca Raton: Taylor & Francis
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Risk Management Frameworks Liza Escalante posted May 1, 2023 8:54 PM • 330 Words
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Last post yesterday at 11:08 AM
by Javad Seyed
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Establishing Key Performance Indicators (KPIs) for top-level management is
i l t ff ti ERM t Th f th ERM t b more
W5 Disccusion Darrian Kelly posted May 1, 2023 11:58 PM Subscribe
Hello Class,
This week We viewed a video on Enterprise Risk Management Systems (ERM). This film
was published in 2008 by Risk Central. The topic of ERM is usually discussed between
directors and managers of Corporations. A well conducted ERM plan reduces the risks in
companies but does not eliminate them.
ERM does not have a standard design system. Exercising Risk management is the
proposed continuous process. Hard elements provide leaders with the 5 ws, who, what,
when where and why. Hard elements are usually a document. These documents include
information such as methods, policies, tools, rules, and guidelines.
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Last post yesterday at 11:01 AM
by Javad Seyed
The risk management techniques listed in these documents are crucial to business
success. Within the policies information regarding strategy, objectives, roles,
responsibilities, and the organizational vision can be studied. The tools and methods
include action plans along with risk assessments. The rules and guidelines indicate when,
how, and the proper way in which leaders should manage risks. The Information
management involved goes over risk action plans, risk registers, rules and ERM policies and
procedures.
Then we have motivational elements which assist with enabling all to adhere to the set
forth rules and guidelines. This includes Key performance indicators, reporting structures,
performance reviews and perception value. The reporting structure involves requirements
and management meetings. Key performance indicators within risk management are used
by senior management.
With all being said, the most important aspects of ERM are having accurate assessment
methods, systematic reviews, and proper management requirements. These important
pieces are broiled within motivational and hard elements of ERM. All the elements
discussed are equally important to have effective ERM systems in place.
References:
Enterprise Risk Management - Introduction Training (2008) -
https://www.youtube.com/watch?v=QgyiRWcZYS4
Schlegel, G. L., & Trent, R. J. (2014). Supply Chain Risk Management: An Emerging
Discipline. Boca Raton: Taylor & Francis Group.
V/R
Darrian Kelly
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WK5 Tanishia Robinson posted May 2, 2023 8:06 AM Subscribe
Hello Class,
Effective ERM systems need both a rigorous approach at the highest levels
and accurate risk assessment. A systematic strategy guarantees that all
material risks are identified, analyzed, and managed (Risk Central, 2016).
Before appropriate controls can be implemented, risks must be recognized,
assessed, and prioritized. To efficiently distribute resources, accurate risk
evaluation is essential. Inaccurate risk evaluation may lead to resource
misallocation and inappropriate prioritization or management of risks.
Businesses need a proper risk assessment to efficiently manage supply chain
hazards. One approach used by DuPont for supply chain risk management is
scenario planning. DuPont is a company going outside its boundaries to
reduce supply chain risk. DuPont uses scenario planning to minimize possible
difficulties in the company's supply chain. This method entails developing
hypothetical scenarios based on a variety of criteria. They may therefore
make better-informed decisions and plans for the future by recognizing and
assessing various risks and their possible consequences. DuPont can boost
its competitiveness and performance by methodically detecting, evaluating,
and managing supply chain risks. (Schlegel & Trent, 2014). The approach
allows DuPont to transition from a reactive to a proactive risk management
strategy. This highlights the use of probabilistic modeling to mitigate supply
chain hazards.
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Last post yesterday at 10:57 AM
by Javad Seyed
Both are required for efficient ERM systems; however, accurate risk
quantification may be more important. Resource misallocation and risk
prioritization or management are conceivable without exact risk estimates.
The firm's risk profile may grow, exposing it to higher potential losses. As a
result, firms must establish credible risk quantification tools to direct their
resources where they will have the most effect.
-Tanishia
Schlegel, G. L., & Trent, R. J. (2014). Supply chain risk management: An
emerging discipline. Crc Press.
Risk Central. (2016). Enterprise Risk Management Training (2008).
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W5: Risk Management Frameworks Jennipher Armstead posted May 1, 2023 9:49 PM
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Two of the elements required for successful ERM systems, as outlined in the video, are:
1. A clear and comprehensive risk framework: This involves establishing a structured
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