Research Paper

Running head: EFFECTIVENESS IN A BUSINESS 1

EFFECTIVENESS IN A BUSINESS 5

Research Topic: Effectiveness in a Business

Naveen Kumar Reddy Tileti

University of the Cumberland’s

Date: 09/16/2020

Research Topic: Effectiveness in a Business

Introduction

Enterprise risk management (ERM) is an essential tool in operating businesses as it focuses on healthy transactions that help achieve economic goals. It is a strategy based on a set of business operations that pinpoints assessed dangers prospected in the market; thus, one of the best approaches to curb hazards may interfere with firms' objectives. Kenton (2019) attributes that ERM strategies do not only identify risks a business may likely face but entirely incorporate the contributive value of investors, stakeholders, and shareholders in annual assessment reports. A hand full of industries that are not limited to construction, finance, public health, insurance, and international development all depend on ERM for effective operation (Kenton, 2020). This paper discusses issues, protocols, methods, business frameworks, and contribution of ERM to corporate success.

Issues in business

Various forces face business activities before attaining the overall goal of profit generation. Factors such as technological failure, regulation and compliance, reputation, performance monitoring, financial management, and uncertainty significantly hit business operations. Thus, the introduction of appropriate strategies can uphold performance. Most enterprise risk management professions find that lack of proper training, equipment and facilities, accountability, and positive reputations is likely to bar a business operation (Beattie, 2020). The goals of corporates can only be achieved through understanding possible challenges and ways to address them faithfully.

Beattie (2020) suggests that it should not depend on a single customer for the effectiveness of a young and growing business. Employees should be able to balance their abilities to work for extended hours and maintain their business goals. More so, the owner needs to train the management to operate entirely without his/her involvement (Beattie, 2020). He adds that a growing business dependent on one customer is similar to an independent contractor. For a firm to be self-sufficient, the investor needs to have diverse customers.

In most cases, growing businesses are accompanied by long working hours and demand for intense funding. The business owner, in most cases, works for extended hours compared to employees. The long hours occur when the owner maintains his job to fetch extra income for funding processes and dependency on his presence for business success (Beattie, 2020). Some ERM professionals find that it is worthy of investing in a business fetching good revenue. However, others may suggest that taking a loan to run a growing company may reduce financial pressure and ease the managerial processes. ERM finds that it may be catastrophic to own a business that may not continue its full operation in founders' presence; thus, training on independence operation may reduce possible risk in owners' absence.

Protocols Followed in a Successful Business.

Solving various challenges in a growing business needs proper consumer-centered protocols and can increase the firm's reputation. The main procedures that consumers are so sensitive to our front office presentations focus on attitude, dressing code, and etiquette. They are highly trained and groomed front office employees to contribute to business growth by a hundred folds. Vitez (2017) suggests that proper etiquette knowledge is essential in an ever-dynamic corporate world.

Different countries tend to have a varied business culture. Understanding the protocols followed in the aspects of dress code, negotiation, perception of etiquette, equality, corporate structures, and privacy can help in successive business processes (Newman, 2017). In buzfluent.com., different countries vary in soft business cultures. While many Americans think America and Canada share the culture, Canadians criticize it and find it somewhat offensive (Newman, 2017). The assumptions are also said to ignore critical essence in business culture. Although both nations consider professionalism and the right timing in business, Americans rely much on numbers and business success factors. Canadians depend much on group-oriented results.

In communication, both Nations address a business partner as 'Mr or Mrs..' However, with continued interactions, the vendor prefers to address using the first name. Americans prefer blunt speech with the business partner, but Canadians consider incorporating subtle humor (Newman, 2017). In business meetings, American allows confrontation and respect each other's disagreement. Interruption of one's speech is often termed as rude. Meetings are set to bring consensus on possible disputes or making new business partners. However, Canadians hold most reserved business meetings.

Management style is different in that Canadians disregard authoritarianism, contrary to Americans who empower managers with abilities to have full accountability and business decisions. When it comes to dressing code, subtle differences are observed in rural where they might use informal dress codes. In urban, Newman affirms that both nations conform to a dark business suit with a tie and a skirt with a jacket for men and women. ERM professions have an in-depth understanding of such varied cultures, and they can contributively help a business succeed in meeting, solving disputes, and making partners.

Methods

Methods facilitating business growth incorporate all forms of communications. The approaches vary from project discussion, meetings, presentations, conference calls, and business proposals. According to doingbusiness.org, business methods incorporate procedures in establishing a business, costs, and time. Law, policies, and regulations are well assessed before setting business procedures considering the economic and time needed for compliance. Methods required in following a full process ensure that set time, costs, and any reforms are followed before legal clearance with the authorities for the entire operations.

Business Framework

A business framework is then designed to allow a fully self-sustained business to operate. With the help of partners and top management, the inventor design operational procedures and policies that guide decision-making. Business-to-you.com describes Porter's business framework model (Administrator, 2018), helping in understanding business operations. They include; the rivalry between established businesses, prospected new entrants, product alternatives, suppliers, and buyers' bargaining power. The mentioned framework, if not well understood, can result in the possible failure of a starting business. Thus, enterprise risk management plays a role in advising the investor on how to make favorite decisions while investing to counter the completion.

Conclusion

Enterprise risk management forms the best base in business operational success. Business professions get an in-depth assessment and analysis of the issues, operating procedures, methods, and policies a company is operating on. Based on findings, ERM can advise on suitable decisions to prepare possible business uncertainties and obstacles such as lawsuits, market trends, dynamism, damages, calamities, and management risks. In this case, decisions such as insurance, adequate staff training, business independency, and culture can be addressed, enhancing attaining objectives. Some company increases its stability by having hired chief risk officers.

References

Administrator. (2018, October 23). Top 5 Business Frameworks, according to Strategy Consultants. Business. https://www.business-to-you.com/top-5-business-frameworks/.

Beattie, A. (2020, August 28). 5 Biggest Challenges Facing Your Small Business. Investopedia. https://www.investopedia.com/articles/pf/12/small-business-challenges.asp.

Doingbussiness.org. (2020). Methodology for Starting a Business. World Bank. https://www.doingbusiness.org/en/methodology/starting-a-business.

Kenton, W. (2020, August 28). How Enterprise Risk Management (ERM) Works. https://www.investopedia.com/terms/e/enterprise-risk-management.asp

Newman, E. (2019, March 11). Canada Vs. America's Business Culture. Bizfluent. https://bizfluent.com/about-6574247-canada-vs--america-s-business-culture.html.

Vitez, O. (2019, February 11). Business Etiquette in the USA. Bizfluent. https://bizfluent.com/about-6167549-business-etiquette-usa.html.