The first step in any project is to have a good plan, including the development of an effective Risk Management Plan; however, project planning is often not completed. Without a good project plan even small issues can “snowball” into large emergencies. A general risk management assessment for the childcare industry has been prepared in which no quantitative data was provided or used. Potential risks facing a typical childcare facility were analyzed using the Enterprise Risk Management (ERM) approach since this approach considers the overall risks as an integral part of a firm’s corporate strategy, and it views all risks together within a coordinated and strategic framework. (Nocco, 2006)
United Grain Growers (UGG), a Canadian company based in Winnipeg, Manitoba provides a variety of commercial services to farmers and markets agricultural products worldwide. UGG also chose to use the ERM method to mitigate its risks by considering all of the firm’s risk exposures and managing them within a unified framework.
By reading UGG’s approach to risk management, it was obvious that a lot of time, attention and analysis were needed to prepare a good risk management assessment. There needed to be a thorough understanding of not only the company but of the industry that the company operates in.
After selecting the ERM approach, the next step for both was to conduct brainstorming sessions to identify and evaluate the risk factors that the firms faced. UGG’s vast knowledge and understanding of their company and the industry allowed them to identify 47 potential risk areas with the ability to narrow these down to the top six biggest risks for further analysis. Unlike UGG, we had little knowledge in the childcare industry and statistics were hard to generate in this specific industry. Therefore, we have generated a generic list of possible risks that the industry faced.
The biggest difference between our’s and UGG’s reports was the use of...
Cited: Insurance Bureau of Canada. (2012). Controlling Costs with Risk Management. Retrieved 01 10, 2012, from http://www.ibc.ca/en/business_Insurance/Risk_Management/
Nocco, W. B. (2006). Enterprise Risk Management: Theory and Practice. Journal of Applied Corporate Finance , Vol. 18(4), pp: 8-20.
Statistics Canada. (2011, 12 29). A Profile of the Childcare Services Industry . Retrieved 12 29, 2011, from http://www.statcan.gc.ca/bsolc/olc-cel/olc-cel?catno=63F0002XIB2002040&lang=eng
Wikipedia. (n.d.). Enterprise Risk Management. Retrieved 01 24, 2012, from http://en.wikipedia.org/wiki/Enterprise_risk_management#Common_challenges_in_ERM_implementation
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