Progression of Flayton Electronics Company - Essay Example

Project Progress Flayton Electronics is an electronic company based in the United s. As the case postulates the company has a developed market and therefore enjoys substantial profitability. The company’s management employs effective tools in managing the risks of the company and carrying out dedicated marketing of the company’s products and services thus contributing to the success the company enjoys. Throughout the company’s lifetime, Flayton Electronics has experienced two of its worst risks, which included hacking, and loss of assets through theft. Additionally, the company has realized its most essential opportunities. This implies that the company is an established brand in the market. According to the company’s risk management plan, the plan has been shortened by two months while the budgetary allocation set aside for risk management is exhausted. The above five occurrences above will have varied ramifications on the operation and profitability of the company. The management must therefore employ specific strategies in order to curb to manage the risks that are always likely to recur. The occurrence of the company’s major risks had varied consequences to the company. Hacking is a global threat that often results in the loss of a company’s most fundamental assets. The company therefore lost its information among other valuable assets all of which resulted in losses for the financial year. The loss of assets through the theft was yet another incident that had similar ramifications as the company lost property worth millions of dollars all of which were part of capital. However, the company had an elaborate risk management plan. A risk management plan should always protect the company’s assets and interests by preventing any form of the identifiable risks. The company invested in risk management by allocating a sizable capital consisting of both financial and human resource. The subsequent manifestations of the specific risks are therefore a portrayal of the failure of the risk management projects. Despite the fact that the manifestation of the risks in the company portrays a failure in the risk management plan, the plan helped mitigate the effects of the risks when they manifested themselves. The management plan for example provided for the backup of the company’s information and the use of appropriate firewalls to protect the company’s database and information system from any form of unauthorized access. The two were essential in mitigating the effects of the hacking since they did not only prevent the loss of unimaginable amount of data but also provided the data through the backup thus contributing to the rapid restoration of operations at the company. Additionally, the information explains that the company has utilized the market opportunities. Marketing is a fundamental management function that carries out market researches and analyses with the view to determining markets for the company’s products and services. Opportunity is an element in SWOT analysis that refers to the features of the market that present the company with opportunities (Crump 61). Key among the opportunities of Flayton Electronics was the uniqueness of its products that made it target an untapped market. Additionally, the company employed the internet in its marketing endeavors thereby targeting a wider target marketing. Realizing its top opportunity refers to the expansion of the company’s market by intensifying its online presence. The implications of realizing top opportunities are varied including an increase in profitability. Flayton Electronics currently enjoys a larger market share and is therefore profitable. However, the increase in market share increases the threats since the company interacts with numerous people. The company must therefore allocate additional financial and human resources in managing the company’s risks. An increase in market share implies that the company has more competitors and enemies both of which require effective management in order for the company to sustain its profitability. The company must for example intensify its production in order for the demand and supply to remain commensurate. As such, the enemies and competitors will invest appropriate resources in attacking the company. This validates the need for an increase in the risk management plan. Shortening the risk management schedule by two months just as any other of the five occurrences had several implications key among which is saving on the budgetary allocation. The financial allocation at the time of planning catered for the entire duration of the plan. This implies that the plan will save the financial allocation for the two months, capital the management can use in revitalizing the plan. By shortening the plan, the management consolidates adequate funds among other resources to help improve the plan for the revised duration. Despite such a positive ramification, the shortening of the schedule leaves he company vulnerable to attacks among other types of unauthorized access since the risk management plan end abruptly thereby leaving the two months excluded by any plan. The shift in the risk management plans thus creates a vacuum that presents adequate threat to the company’s assets and resources. The exhaustion of the budgetary allocation for the plan is yet another fundamental occurrence that is likely to affect risk management in the company. Finance is always the most essential resource in a company since it can afford most of the other resources used in the implementation of the management plan (Kutsch, Tyson and Mark 27). The exhaustion of the budgetary allocation therefore implies that the management cannot afford any of the other auxiliary resources essential in the management of the plan. As such, the risk management process stalls as the company becomes exposed to the numerous risks. Furthermore, the reports indicate that the company has realized its largest opportunity a feature that implies that the company currently interacts with a wider market. This compounds the threat thus the vulnerability of the company since the company lacks a comprehensive and functional risk management plan. As such, the company require new and equally effective mitigation plan in order to reduce the various risks the company faces. The mitigation plan begins with the development of a comprehensive risk management plan, one that will require adequate financial allocation. As explained earlier, information is always among the most essential assets in a company. As such, Flayton Electronics must allocate adequate financial resources in the management of the risk thus creating a company that operates without the risk of any form of attack. The company must develop appropriate ways of curbing unauthorized access of the company’s database. This requires the use of sophisticated technology to monitor the movement both in and around the database and the company’s information system. However, such an elaborate risk management plan will require large financial allocation a feature that validates a comprehensive evaluation of the existing risk management plan with the view to developing a new plan. Among the changes in the risk register will include an increase in the financial allocation as discussed above in order to provide effective coverage for the new threats to the company. Additional changes to the register will include an increase in the scope of the risks owing to the fact that the company’s market share has increased tremendously. As explained earlier an increase in the company’s market share implies that the company interacts with more people and therefore faces intense risk from different quarters. By increasing the scope of the risk, the company’s management will develop and elaborate plan that covers all the possible sources of risk from the large market (Hillson & Simon 32) In retrospect, the changes in the structure of Flayton Electronics’ risk management plan are natural and often anticipated in ideal businesses. As such, the management of the company must therefore revise the risk management plan by including new features in the register thus ensuring the company has adequate resources to guarantee fidelity of the company’s database among other vital resources. Works cited  Hillson, D & Simon, P. Practical project risk management the ATOM methodology. Tysons Corner, Va.: Management Concepts 2012 http://trove.nla.gov.au Kutsch, Eltnar, Tyson R. Browning, and Mark Hall. "Bridging The Risk Gap." 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