March 25, 2013
Starbucks Risk Management
In this documentation Team B will discuss different risk management benefits and techniques, and how companies use these benefits and techniques to further their financial goals and prevent future losses. There are two distinct risk management benefits categories: hard and soft. Hard risk management benefits are contingencies, decisions, control, and statistics. Hard benefits support the strategic business planning and effective use of the company resources. While soft risk management benefits are effective communication and a greater sense of morals and responsibility between management and his or her staff. The risk management techniques used in this documentation was qualitative and quantitative. Also Team B decided to do a risk assessment of Starbucks as a part of this documentation. Risk management can benefit the stakeholders, corporate business, and strategic business. These benefits are separated into two categories: hard and soft benefits. The hard benefits are contingencies, decisions, control, statistics, and the like. The company can plan, schedule, and budget appropriately for each projects. It will encourage project that have a chance to succeed and discourage project that will fail. It also allows management to identify and chose the right risk manager for the projects. The statistical data can assist in future projects. The soft benefits address people issue. It can improve and enhance the communication, experience, and team spirit of the staff. It will also assist in identifying the good and bad management. It develops effective management and staff members in responding to customer service relation. These risk management techniques ensure the success of the team and the company, in which will benefits in maximizing the profits for its stakeholders (Merna& Al-Thani, 2008). The two basic techniques used to measure risks are qualitative and...