Riordan Corporate Compliance Plan
Riordan Corporate Compliance Plan
LAW/531
February 4, 2013
Marlene Wilhite, Esq.
Riordan Corporate Compliance Plan
To: Riordan Corporate Board and Officers
Riordan Manufacturing is a Fortune 1000 company specializing in the manufacture of plastic beverage containers, fans, plastic components, and medical devices with annual earnings of $46 million. The company operates divisions located in Albany, Georgia, Pontiac, Michigan, and Hangzhou, China (University of Phoenix, 2013). The following is an analysis and recommendation for an Enterprise Risk Management plan that will benefit the company and ensure its future according to its stated mission.
The "Enterprise Risk Management - Integrated Framework" (2004) website describes the eight interrelated components of an Enterprise Risk Management system that include internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring. A formal risk assessment has been performed that have identified several potentially serious risks that could expose the company to substantial liability, they are * Quality of medical device products manufactured at the Pontiac, Michigan, plant. * Yin Motor Company child labor.
* Drinking water contamination from chemicals released during the manufacturing process at the Hangzhou, China plant. * Employee complaints and dissatisfaction that could result with the loss of valuable employees, company knowledge, and tangible or intellectual property.
Product Liability
“Impact (or consequence) refers to the extent to which a risk event might affect the enterprise. Impact assessment criteria may include financial, reputational, regulatory, health, safety, security, environmental, employee, customer, and operational impacts” ("Erm Risk Assessment In Practice", 2012). Riordan Manufacturing may be exposed to significant enterprise liability impact because of some quality
LAW/531
February 4, 2013
Marlene Wilhite, Esq.
Riordan Corporate Compliance Plan
To: Riordan Corporate Board and Officers
Riordan Manufacturing is a Fortune 1000 company specializing in the manufacture of plastic beverage containers, fans, plastic components, and medical devices with annual earnings of $46 million. The company operates divisions located in Albany, Georgia, Pontiac, Michigan, and Hangzhou, China (University of Phoenix, 2013). The following is an analysis and recommendation for an Enterprise Risk Management plan that will benefit the company and ensure its future according to its stated mission.
The "Enterprise Risk Management - Integrated Framework" (2004) website describes the eight interrelated components of an Enterprise Risk Management system that include internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring. A formal risk assessment has been performed that have identified several potentially serious risks that could expose the company to substantial liability, they are * Quality of medical device products manufactured at the Pontiac, Michigan, plant. * Yin Motor Company child labor.
* Drinking water contamination from chemicals released during the manufacturing process at the Hangzhou, China plant. * Employee complaints and dissatisfaction that could result with the loss of valuable employees, company knowledge, and tangible or intellectual property.
Product Liability
“Impact (or consequence) refers to the extent to which a risk event might affect the enterprise. Impact assessment criteria may include financial, reputational, regulatory, health, safety, security, environmental, employee, customer, and operational impacts” ("Erm Risk Assessment In Practice", 2012). Riordan Manufacturing may be exposed to significant enterprise liability impact because of some quality
References: Cheeseman, H.R. (2010). Business law: Legal environment, online commerce, business ethics, and international issues (7th ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Child labor laws. (2013). Retrieved from http://legal-dictionary.thefreedictionary.com/Child+labor+laws+in+the+United+States Child labour. (n.d.). Retrieved from http://www.un.org/en/globalissues/briefingpapers/childlabour/intlconvs.shtml ERM risk assessment in practice. (2012). Retrieved from http://www.coso.org/documents/COSOAnncsOnlineSurvy2GainInpt4Updt2IntrnlCntrlIntgratdFrmwrk%20-%20for%20merge_files/COSO-ERM%20Risk%20Assessment%20inPractice%20Thought%20Paper%20OCtober%202012.pdf Enterprise risk management - integrated framework. (2004). Retrieved from http://www.coso.org/documents/COSO_ERM_ExecutiveSummary.pdf University of Phoenix. (2013). Riordan manufacturing. Retrieved from University of Phoenix, LAW531 website.