Enterprise Risk Management

Running head : enterprise risk management

Enterprise Risk Management

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University of Phoenix

Enterprise Risk Management

Eight years ago , no one thought that Google will be a successful company in the new media (Internet ) that generates more than 10 billion a year in revenue (Lashinsky , 44 . Similarly , no one ever wonder that Amazon .com that records a series of negative profits since end 1990s finally makes positive income a couple years ago . In fact , the company now , continues becoming a role model of successful online company that

sells many things from books to CDs and computers to pet supplies

Interestingly , the two companies do not suddenly grow into a huge company without putting their first steps as new entrants and running through the fierce competition of e-business as small businesses , medium businesses and finally the way they are we see right now

The condition explains that in to become big , companies should be able to manage when they are small . Although any start-ups , or we refer them as small companies , aims at advancing into large companies unfortunately , it is not easy anyway since they should think of how to bring the firms into success , how much they pay their employees fairly which kind of customers they target , what products /services they offer when to launch specific product /services into the market , and so many other things to consider about

The condition suggests that companies had better manage their risks with an extra touch of integrity and a carefully considered risk plan (Hooven , 2001 . This move is imperative since entering business situation will provide companies with the uncertainty that takes more than just market knowledge , skills , and patience . It certainly takes a lot of energy and focus to handle risk that we know as enterprise risk management

Describe the Situation

Issue and Opportunity Identification

Concerning the enterprise risk management , this outlines a plan to implement enterprise risk management based on the Committee of Sponsoring Organizations of the Treadway Commission (COSO recommendations for a company that recently completes their mergers with AOL to form a new media company they are Time Warner . In to comply with the recommendation , we will incorporate key concepts of COSO

Stakeholder Perspectives /Ethical Dilemmas

From the stakeholder point of view , the decision of Time Warner to merge with AOL is perceived as strategic move to keep the company competing n the media business (Internet . However , the decision influences the company 's stakeholders especially regarding the undulating share price . In the Identifying and managing multiple and cross-enterprise risks section , there is detail explanation how the decision influence the stakeholders interest towards the merger

Right ' Problem

Oxford Advanced Learner 's Dictionary defines risk as possibility of encountering danger or suffering harms , losses , etc (1989 . According to the Carnegie Melon Institute , risk management is a practice with processes , methods , and tools for managing risks in a project . It provides a disciplined environment for proactive decision making to assess continuously what could go wrong (risks , determine...