Culture Relevance in Enterprise Risk Management
Blue Wood Company makes chocolates and sells them to a market involving a wide variety of customers. The company has experienced several challenges and managed to get through some in its quest for success. Risk tackling strategies, proper regulations, and leadership involve management issues that are a concern (Grace et al.,2015). It is important for a company to have a well laid-out structure concerning the responsibilities of staff and the collective.
The company has experienced certain challenges such as inconsistent profits and lack of smooth operations which affects the ability of the company to provide for excellent product development. It’s strange that the management lacks a clear explanation of the effect hence causing the need for proper scrutiny of the management, employees, work structure and the market environment.
It is important for the company to devise important regulations and practices that govern how operations and processes need to be delivered to arrive at the final product. A new financial manager was given the post while she did not have the necessary knowledge concerning the structure and company activities (Florio & Leoni,2017). Sally Holton lacked the inner knowledge to know the exact processes to address, hence causing concerns over whether other senior employees be considered for the job due to their knowledge about the company.
Good culture is necessary for the successful running of a company. Blue Wood needed to have a risk management department to tackle all the issues involving risk concerns. Such a department would give initiatives to the management, which will have no option but to implement it (Gatzert & Schmit, 2016). Well-structured leadership chain, good communication channels, professional ethics and employee relationship, few experienced members and clearly laid out strategies are factors that promote good corporate culture.
Firms should work towards ensuring that all the possible signs of poor operations and company culture are eliminated as quickly as possible. They may prove hard to eliminate once the employees get used to it. Unprofessional communication, uneven leadership structure, incompetent staff, lack of proper ethics, poor values and discipline strategies all lead to a negative environment that is unconducive for workers (Berry‐Stölzle et al.,2018). It is, therefore, necessary for companies to try all ways possible to promote a good working structure and eliminate poor working structure.
References
Grace, M. F., Leverty, J. T., Phillips, R. D., & Shimpi, P. (2015). The value of investing in enterprise risk management. Journal of Risk and Insurance, 82(2), 289-316.
Florio, C., & Leoni, G. (2017). Enterprise risk management and firm performance: The Italian case. The British Accounting Review, 49(1), 56-74.
Berry‐Stölzle, T. R., & Xu, J. (2018). Enterprise risk management and the cost of capital. Journal of Risk and Insurance, 85(1), 159-201.
Gatzert, N., & Schmit, J. (2016). Supporting strategic success through enterprise-wide reputation risk management. The Journal of Risk Finance, 17(1), 26-45.
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