Risk Management Overview Paper
Risk management is a very important factor in any company. A company needs to understand the risks that it may face and why the risks are present and if they could have been prevented. The company in which I work for is an air filter distributor , Air Filters, and these risks also pertain to my company. Organizational Risk
Organizational Risk is will occur with the company's business functions, such as financial and systematic risk. These risks can result in the breakdown in internal procedures, systems and people. Business Risk
A business risk is a circumstance that can have a negative impact on the profitability or operations of a company. The business risk can be either internal or external and can cover a variety of different issues. Those issues can range from a purchasing risk to a customer risk and can also include an information technology risk. Company's try to avoid business risks and also at the same time study them to better understand them. Once a company better understands what risks it may face, the more efficient and effective they can become. Air Filters Corporation
Air Filters is an air filter distribution company in the Richmond, Virginia area. Air Filters sells to anyone that wants to purchase and air filter and this includes the public. One of the risks of the company is the mechanical shutdown. The company makes custom filters from standard sizes. The machines that are used cannot go down for long or this will cost the company money. Also the lost man hours and the man hours it will take to catch up on the orders could hurt the company financially. Another risk would be the breakdown of any of the company's vehicles. The company delivers filters and also does service installations on a monthly basis in many different companies. This could hurt the company financially in repairs of the vehicles and not supplying the filters when needed to the customer could cost...
References: Merna, T., & AL-Thani, F. (2008). Corporate Risk Management (2nd ed.). Chichester, West Sussex: John Wiley & Sons.
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