Riordan Manufacturing Inc. is a global plastics manufacturer with facilities in San Jose, CA, Albany, GA, Pontiac, MI, and Hangzhou, China. The projected annual earnings for Riordan are $46 million. To achieve the projected earnings and financial profitability, the Riordan Board of Directors (BD) will need to focus on the formation of Riordan’s Corporate Compliance Plan (CCP). The CCP will provide to BD of Riordan the prevention and management course of action of legal aspects. The aspects will be focused on enterprise liability, real and intellectual property, governance principles of regulatory compliance requirements, and specific international laws that must be adhered to Riordan Manufacturing and the stages for employees to adhere to these laws. Also implementing Enterprise Risk Management (ERM) based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO) eight interrelated components. II.Mission Statement
According to Riordan mission “Six Sigma, leading edge R&D and exceeding ISO 9000 standards define the attitude and abilities of Riordan Manufacturing. We are industry leaders in using polymer materials to provide solutions to our customer’s challenges. Our R&D is, and will remain, the industry leader in identifying industry trends” (University of Phoenix, 2012). III.Enterprise Liability and Product Liability
Enterprise liability is critical for the management because managers represent the organization and will be held liable for actions and decisions in the areas of corporate responsibility they foresee. Employing Enterprise Risk Management throughout areas such as corporate responsibility; specifically mitigating risk where possible without degradation of product, services, and profitability. Ensure every employee is trained to report violations and circumstances that are abnormal or they are not sure how to proceed. Specifically managers are “agents” of Riordan and have a unique responsibility to “act” in an appropriate manner in decision-making and actions. The board of directors oversees risk management and corporate liabilities of Riordan Manufacturing with the support of COSO. Enterprise risk management (ERM) is a process and consists of eight interrelated components. 1.Internal Environment will set the base in how management of Riordan will identify and assess risk by an entity or person. It will include risk management philosophy and risk appetite, integrity, and code of ethics, and Riordan environments. 2.Setting Objectives will set before Riordan management can recognize probable actions which could affect organization achievement. The ERM will ensure Riordan management has a procedure in hand to establish goals, select goal support, and align with the organization mission as well with its risk appetite. 3.Identification of the Event will include situations, such as internal and external, which could affect the achievement of the Riordan goals, and recognize, and differentiate between risk and opportunity. 4.Risk Assessment, risk will analyze, in view of odds and influence, as part of how Riordan management will assets the risk. 5.Risk Response, the organization must avoid, accept, reduce, or share risk. Also must develop a set of actions that would be aligning with organization risk tolerance and risk appetite. 6.Control Activities will be Riordan policies and procedures established and implemented to help ensure that responses by the organization are carrying out successfully. 7.Information and Communication will recognize, capture, and communicate in a suitable form and a reasonable time and support Riordan manager’s carry out their responsibilities. The communications have to be in every direction within the organization. 8.Monitoring, the whole ERM has to be monitored and if it is necessary be modified. This component will be accomplished by manager through management’s activities, separate evaluation, or...