Risk Management

Strategic Pre-Incident Changes

Strategic Risk

Risks that deviates an organization from successful achievement of its business objectives are regarded as strategic risks. These risks occur due to faulty decisions taken by the directors of an organization. The financial crises of the country leads to some inappropriate decisions made by the directors and the higher authorities of the company this is due to the lack of backup plan for any conditions like this. To overcome this disaster issue that may be lead company to the lower position as compare with the competitors.

As a consultant I should go for the policy making session for the strategic layer to handle this issue before it occurs. Make some policies regarding the financing problem in the time of financial crises in the country. The policies have to be more precise and easy to understand. These policies help every employee to make the decision according to the policy and regulation specially the top level managers. They should prepare for the hard time related to financial crises in the company. Apple Inc. is one the leading company it technology so they should have a plan to secure them and their image in any type of crises.

Competitors Risk External risk, that is beyond the influence of an organization. For instance, the rising competition across the globe is global risk as it cannot be controlled or influenced by an organization.

This is risk which is very important to handle to maintain the market share all over the globe. As a consultant I make such training programs with the help of operations managers of the company that allow me to make some strategies to prepare before this. As any crises, competitors risk is always been their. Large organizations like apple should have made some market strategies to over some these issue. I, train the employees that how become more efficient for the betterment of the company in any time of crises regarding this competitor's issue. This is more applicable for the manufacturing and research department to make some innovations to gain a lead as compare to their competitors. They should always been on the high side in any type of crises situations.

Transaction Risk

The risk associated with business transactions in foreign currencies is regarded as transaction risk. The possibility of incurring loss due to currency movement (i.e. exchange rate) is also called transaction exposure.

In financial crises these type of risk are very common to be happened in any organization. As consultant I would manage this type of issues/crises by training session. Through proper training of accounts dept. any firm like Apple can gain some pre crises training to reduce their risk in the panic situation. Employees should know what should be the best decision at the time of the crises.

Communication Risk

Communication is defined as the proper exchange of information. The possibility of gap during the exchange of information among the stakeholders is referred as communication risk. Communication risk is one the common risk in any ...