ERM and JAA Inc

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22 hours ago

Sudheer Kumar Ramayanam 

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ERM Implementation in JAA Inc

JAA Inc is a retail and wholesale chain that deals with the sale of clothing. The Market in which the company operates is volatile to both internal and external threats. It is therefore important for the company adopts and implements the ISO 31000 Enterprise Risk Management. Notably, the implementation of the ERM risk will help the business to understand the risk associated with different markets and therefore reduce the losses that result from risky markets.

In addition, in the unfortunate scenario a risk strikes, the ERM plan reduces the amount of time taken to jump back into business. As a matter of fact, the risk plan allows a maximum of three days of interruption from a disaster or a cyber attack (Wieczorek-Kosmala, 2014). According the plan, the business should normalize the sale of clothing after the three days. Additionally, ERM increases customer satisfaction by ensuring that the products returned by customers should not exceed 1 % of the total amount of clothes manufactures. Besides, the plan will also reduce the civil suits filed by customers by outlining speedy measures of replying to complain and strict adherence to contracts.

The JAA Inc ERM plan is a comprehensive plan that I wouldn’t mind to implement in my future organization. However, the plan lacks measures to be undertaken to prevent and mitigate the effects of US dollar fluctuations. A decrease in the rates of US dollar would result to financial loses due to the fat that the company operates in over 10 countries overseas (Scordis, 2018). Therefore, JAA Inc needs to include currency deprecation as a major risk and outline plans of mitigating loses such as the use of local currencies to buy and sell goods.

 

 

References

Scordis, N. (2018). Influence of a Board-Level Risk Committee on Value. Journal of Insurance Issues, 41(1), 111-134.

Wieczorek-Kosmala, M. (2014). Risk management practices from risk maturity models perspective. Journal of East European Management Studies, 19(2), 133-159

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