Corporate Risk Management - Essay Example

Comments (1) Cite this document
Summary
Corporate Risk Management Introduction The escalating speed of alterations, consumer needs and globalization put risk management to be of high importance in many organizations. In reference to Chew (2008, p. 234), risk management is an imperative matter facing contemporary organizations…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
Corporate Risk Management
Read TextPreview

Extract of sample "Corporate Risk Management"

Download file to see previous pages In the past years, companies had a risk manager who would oversee the organization’s insurance purchases. In addition, the extent and undertaking of corporate risk management has drastically changed and expanded beyond insurance to comprise all types of corporate in use and tactical perils. Risk describes both the probability and severity of a loss event. Probability delineates the likelihood of the occurrence of the loss while severity denotes the magnitude of the loss in a given period. All organizations face risk and the resultant potential losses on a daily basis (Lim, 2010, p. 234). They willingly accept risks with hopes of gaining financial return. Intercontinental hotel is an example of a venture that is taking risks. An organization may be exposed to loss exposures that offer an opportunity to gain or not to gain. Pure loss exposures are exposures that offer Intercontinental Hotel potential for losses and no opportunity to gain. These pure loss exposures include “asset exposures, personnel exposures, liability exposures and consequential loss exposures” (Merna & Al-thani, 2011, p. 167-169). Loss exposure has three primary elements. It describes the item subject to loss, the peril and cause of the loss and the financial effect of the loss. In loss exposure, the organization must have a loss of anything that could be assets, personnel or liabilities (Merna & Al-thani, 2011, p. 170). Personnel Loss exposures People are the principal inputs in an organization in generation of income. People could either be employees of a firm or belonging to a certain household. The loss of humans is indispensable as human capital cannot be replaced and that no value can be placed on human life. Personnel loss exposure refers to the probability that an organization will suffer a financial loss because of disability, retirement, death or resignation of primary employees (Siljander, 2008, p. 190). Intercontinental Hotel faces personnel loss exposures which, according to Lim (2010, p. 239), includes the “disability insurance, workers compensation insurance, long term care insurance, medical insurance and Medicare supplemental insurance”. Nonetheless, Intercontinental Hotel generates for the organization through effective risk management. In order to effectively manage the loss of personnel in the organization, it is essential to understand the value that each personnel contributes to the organization, and identify and evaluate the risks and dangers that affect the value of generation and operation of the company (Lim, 2010, p. 237). Intercontinental Hotel apprehends the value that each of its employees creates and then analyzes the dangers that affect the significance of its generation. In addition, the organization assesses the magnitude of the loss suffered after the occurrence of personnel peril. A loss of personnel in Intercontinental Hotel raises two further risk management concerns as to the employer’s liability in administering and funding the employee benefit plans and the uncertainties involved in funding such plans. The personnel in any organization have a financial value to the organization. As according to Carrel (2010, p. 142), they assist in generating income for the organization. Moreover, the services that personnel render to the organization are valuable and cannot be replaced. In this regard, the financial value of an individual in an organization ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Corporate Risk Management Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Corporate Risk Management Essay Example | Topics and Well Written Essays - 2500 words. Retrieved from https://studentshare.org/management/1400764-corporate-risk-management
(Corporate Risk Management Essay Example | Topics and Well Written Essays - 2500 Words)
Corporate Risk Management Essay Example | Topics and Well Written Essays - 2500 Words. https://studentshare.org/management/1400764-corporate-risk-management.
“Corporate Risk Management Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/management/1400764-corporate-risk-management.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
zv
zvandervort added comment 1 year ago
Student rated this paper as
I didn’t know how to start my essay. "Corporate Risk Management" helped me out a lot! Especially the list of ideas was valuable.

CHECK THESE SAMPLES OF Corporate Risk Management

Corporate Risk Management

...Corporate Risk Management Financial risk management is a very sensitive issue for many firms in a modern market environment. While insurance is the de facto method of hedging financial risk in business, it can be very costly and this requires the business to have alternatives to hedge its financial risk (Frank, 89). Risk management therefore involves the identification of risk, the measuring of the risk in regards to its likelihood of occurring and the impact it can have on the business if it occurs. This helps in identifying the best way to hedge a...
9 Pages(2250 words)Assignment

CORPORATE RISK MANAGEMENT

...of Form Top of Form Top of Form Bottom of Form Top of Form Top of Form Top of Form Top of Form Top of Form Top of Form AGRAWAL, R. C. (2009). Risk management. Jaipur, India, ABD Publishers. http://site.ebrary.com/id/10416293. BROWN, M., & MANNAN, S. (2004). Risk management. Rugby, UK, Institution of Chemical Engineers. CROUHY, M., GALAI, D., & MARK, R. (2000). Risk management. New York, McGraw Hill. Culp, C., Miller and Neves. 1998. Value At Risk: Uses And Abuses. Journal of Applied Corporate Finance, 10 (4), pp. 26-38. Available at: http://ideas.repec.org/a/bla/jacrfn/v10y1998i4p26-38.html [Accessed: 18...
4 Pages(1000 words)Essay

Corporate risk management

...? Corporate risk management Topic: 6) Risk manager for a fleet of motor vehicles Contents Introduction 3 Discussion 3 Conclusion 6 Reference 8 Introduction Motor insurance is one important category of general insurance and it is also known as car insurance or auto insurance. This is the insurance which is purchase by individuals who owns cars, trucks, motorcycles etc. The primary use of this insurance is to provide financial protection against any damage from traffic collisions that occurs when in operation. It can result from physical damage caused by traffic collision. Each region or country has their own rules and regulations to be followed. There are...
6 Pages(1500 words)Essay

Corporate Risk Management

...? Corporate Risk Management Contents Contents 2 Introduction 3 Firm’s exposure to physical risk 3 Physical Risk consideration in Capital budgeting 5 Physical Risk measurement in Capital Budgeting 6 Conclusion 7 References 8 Introduction The firms should considers the physical risk factor in the business while applying the capital budgeting techniques for evaluating the net present value or the internal rate of return of the business. The consideration of the physical risk of the business to the fullest extent would help the companies to calculate the rational value of business and decide on the...
5 Pages(1250 words)Essay

Corporate Risk Management

...Corporate Risk Management I. Introduction Nearly every business organizations whether big or small have to face innumerable amount of risks while carrying out their operations. Of the various types of business risks, some risks are predictable and controllable by management where as some others are unpredictable and uncontrollable one by management. And at the same time degree of risks to be faced by organizations also may vary from one another depending upon their size, nature, diversity of business line and also their sources of capital to which they are depending upon. An organization...
9 Pages(2250 words)Essay

Corporate risk management

...Swarna1 P.Swarnalatha ID 5448 Order # 139084 15.11.2006. Corporate risk management The management of any corporate project must concentrate on strategic control of risks involved. Successful project management certainly aims at reducing and minimizing risks. The understanding the original meaning and nature of risk is very much needed for any corporate entity. Risk can be defined as uncertainty of outcome after the task is performed (FN 1). It may be in the form of positive opportunity or negative threat. It is opined that some amount of...
7 Pages(1750 words)Essay

Corporate risk management

...Corporate Risk Management This paper discusses the risk which corporations are exposed to. The specific issue discussed regards fire and the course to take in the event of a fire break out. Also, discussed are all of the elements in the risk management cycle associated with that mistake. Some management strategy considers this issue in case of transfer, avoidance, control and retaining the risk. Finally, the paper illustrates how to ensure that no or very few lives are lost and what would result in deaths as a result of the risk. Table of Contents Table of...
8 Pages(2000 words)Essay

Corporate Risk Management

...Corporate Risk Management In this research, I will explain the corporate risk management from the perspective of one of the largest companies in Saudi Arabia, Samama group of companies that have been an efficient platform for my personal employment. Since a while, the company was relying exclusively on one sector of operating medical hospitalizations; however, a decision of the Saudi that prohibited private companies from running public hospitals that resulted in a significant risk in the general situation of the company. Thus, I will study this sudden risk management through the...
8 Pages(2000 words)Essay

Corporate risk management

...a) What are the real-world components of Ct, I and k for evaluating the following types of risk management activities at NPV? i) Risk retention ii) Risk transfer iii) Risk control, and iv) Risk avoidance Answer: 1) Risk Retention: Risk retention is a form of Risk management strategy wherein the organization determines that the cost of transferring risk to outside entities and third parties is greater than retaining the risk of loss and offsetting it through their own emergency funds and allowances. In a...
8 Pages(2000 words)Essay

Solving exams questions for Corporate Risk Management

...Corporate Risk Management Institute 1a) pure loss exposure or (Pure risk) refers to the exposure where there are no chances for gain. The loss is certain in case of pure loss exposure. It includes the risk events, which are beyond the control of risk taker. For example the house of a person is destroyed due to earthquake (Harrington & Niehaus, 2004). The risk is beyond the control of the house owner (risk taker) and there would not be any potential benefit to the risk. Similar is the case with whole organization, which is manufacturing concern. If the factory is destroyed due to natural...
38 Pages(9500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Corporate Risk Management for FREE!

Contact Us