Luận Văn
Business risk model
Short definitions of business risk
Environment risk
Competitor, Customer wants, Technological innovation, Sensitivity, Shareholder relations, Capital, Sovereign/political, Legal, Regulatory, Industry, Financial markets, Catastrophic loss
Process risk
Operations Customer satisfaction Human resources Knowledge capital Product development Efficiency Capacity Performance gap Cycle time Sourcing Channel effectiveness Partnering Compliance Business interruption Product/service failure Environmental Health and safety Trademark/brand erosion Empowerment Leadership Authority/limit Outsourcing Performance incentives Change readiness Communications Information processing/ technology Relevance Integrity Access Availability Infrastructure Integrity Management fraud Employee/third party fraud Illegal acts Unauthorized use Reputation Financial Price Interest rate Currency Equity Commodity Financial instrument
Liquidity Cash flow Opportunity cost Concentration Credit Default Concentration Settlement Collateral
Information for decision making risk
Process/operational Products/service pricing Contract commitment Measurement (operations) Alignment Business reporting Budget and planning Accounting information Financial reporting evaluation Taxation Pension fund Investment evaluation Regulatory reporting Environment/strategic Environmental scan Business model Business portfolio Valuation Organization structure Measurement (strategy) Resource allocation Planning Life cycle
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ENVIRONMENT RISK Environment risk arises when there are external forces that could affect the viability of the enterprise’s business model, including the fundamentals that drive the overall objectives and strategies that define that model. 1. 2. 3. Competitor risk. Actions of competitors or new entrants to the market impair the firm’s competitive advantage or even threaten its ability to survive. Customer wants risk. Pervasive customer needs and wants change and the
Short definitions of business risk
Environment risk
Competitor, Customer wants, Technological innovation, Sensitivity, Shareholder relations, Capital, Sovereign/political, Legal, Regulatory, Industry, Financial markets, Catastrophic loss
Process risk
Operations Customer satisfaction Human resources Knowledge capital Product development Efficiency Capacity Performance gap Cycle time Sourcing Channel effectiveness Partnering Compliance Business interruption Product/service failure Environmental Health and safety Trademark/brand erosion Empowerment Leadership Authority/limit Outsourcing Performance incentives Change readiness Communications Information processing/ technology Relevance Integrity Access Availability Infrastructure Integrity Management fraud Employee/third party fraud Illegal acts Unauthorized use Reputation Financial Price Interest rate Currency Equity Commodity Financial instrument
Liquidity Cash flow Opportunity cost Concentration Credit Default Concentration Settlement Collateral
Information for decision making risk
Process/operational Products/service pricing Contract commitment Measurement (operations) Alignment Business reporting Budget and planning Accounting information Financial reporting evaluation Taxation Pension fund Investment evaluation Regulatory reporting Environment/strategic Environmental scan Business model Business portfolio Valuation Organization structure Measurement (strategy) Resource allocation Planning Life cycle
Page 1 of 8
ENVIRONMENT RISK Environment risk arises when there are external forces that could affect the viability of the enterprise’s business model, including the fundamentals that drive the overall objectives and strategies that define that model. 1. 2. 3. Competitor risk. Actions of competitors or new entrants to the market impair the firm’s competitive advantage or even threaten its ability to survive. Customer wants risk. Pervasive customer needs and wants change and the