The Management Of Service Businesses In Japan

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• Read the Learning Outcome(s) and related study text for each question before answering it.
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Question	Learning Outcome(s)	Chapter(s) in the Study Text Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Maximum marks per answer
1	LearningOutcome1	Chapters 1 & 5	10 marks
2	LearningOutcome2	Chapters 1, 2, 3 & 7	20 marks
3	LearningOutcome3	Chapters2, 3, 4, 5, 6 & 7	30 marks
4	LearningOutcome4	Chapters1 & 5	10 marks
5	LearningOutcome5	Chapters 3 & 5	20 marks
6	LearningOutcome6	Chapter6	20 marks
7	LearningOutcome7	Chapter7	10 marks
8	Across more than one Learning Outcome	Acrossmorethan onechapter	30 marks
9	Across more than one Learning Outcome	Acrossmorethan onechapter	30 marks
10	Across more than one Learning Outcome	Acrossmorethan onechapter	20 marks

Question 1 – Learning Outcome 1 (10 marks)

As a risk manager it is important to hereby analyse the effect of the incident of near miss of the budget airline on perception of the public. Therefore, as part of the analysis, it is essential to comprehend overall influences on the risk perception of individuals.

Personality, cultural background and environment: Safety perception is an important factor. Essentially, safety perception in airline is mainly controlled by different facets namely personal traits of individuals, background of culture, different backgrounds and the environment in which they sustain. The relationship between perception in risk and personality is studied and this shows personality as enduring thought pattern of individuals, feelings as well as behaviours. Furthermore, perception regarding risk is also ascertained by variations in culture in perceptions in risk along with attitudes towards safety as well as risk, considering behaviour of individuals in Norway as well as Ghana and their outcomes discovered variances between two different nations. Businesses as well as individuals in New Zealand were surveyed throughout different segments of the aviation industry and results of the study indicated that individuals perceive safety education, adequate training as well as roles can be considered to be important for the business concern to enhance management of safety. However, pilots along with aviation industry specialists are of the view that luck is extremely associated, that is entirely different from public viewpoint.

-External factors such as air quality and facilities: There are different external facets such as environment along with facilities also exert influence on perception of risk. It was observed that different passengers along with airline passengers have the intention to avert risks from safety hazards as quality of air, level of temperature along with amenity exert an impact on overall feelings and emotions of people.

Explanation with justification of four significant technology/cyber risks

• Hacking: In the new digital epoch, cyber security can be considered to be the most important kind of security that is needed. Businesses, different agencies of government, different financial institutions and fundamentally any kind of business entity that stores specific information digitally needs to be aware of the probable violations of security. The world is essentially getting exposed to the threat of different malicious hackers and majority of individuals cannot understand the damage inflicted by hacking on computers as well as networks.
• Extortion: Cyber extortion can put forth a data repository at risk in numerous ways, each including distinct technologies, considering threat vector as well as protection side. In essence, protective dimensions against threats of cyber extortion can be varied as specific threats in itself.
• Phishing: Phishing can be considered to be one of the most commonly registered form of threats to cyber security. It is important to keep up with mechanisms of phishing attacks as it can prove to be extremely difficult. In essence, there are different categories of phishing and the type that is utilized normally relies on the segment.
• Human Error: Lost as well as Stolen laptops

There are several successful security attacks from different external attackers who prey on human weaknesses, waiting patiently for employees to be attracted into delivering access to sensitive information. Also, their errors can also be incredibly costly as the insiders engaged have access to a host of sensitive data. One of the greatest influences of successful security violation is the exposure of this type of information, loss of intellectual property along with infection of malware.

Learning Outcomes

The risk management actions of KC Plc for mitigating the above mentioned risks include the following:

Avoiding human error

-Sending sensitive documents to specific unintended recipients can be considered to be a mistake and a source of human error. This is comparative simple to resolve when employing security controls to track sensitive information from being leaked out of the business concern. In essence, these concerns can be considered to be intricate to employ. The management of businesses can consider restrict actions such as sending documents through email or else placing the same on different file sharing sites else wise removable media.

Avoiding hacking:

– Hacking can be avoided by using a VPN to be particularly anonymous on the web, using back up of cloud properly, linking two different accounts together can be considered as the last resort. In essence, for averting hacking, it is important to use two factor authentication on particularly accounts on internet

Management of the firm in order to avert extortion can take up certain actions to assist against cyber extortion as mentioned below:

– The company needs to understand the data, generate back up files, train employees to detect spear phishing, examine checks on employees of the business and limit administrative potential for different systems along with social footprint. Also, in order to avoid extortion, it is important to make certain that systems have suitable firewall along with technology for antivirus. In addition to this, it is also significant to have effective data violation prevention tools, counting intrusion detection. Further, it is necessary to update security software scrap in a timely way and include security capacities of DDoS. Additionally, it is also necessary to present a plan for management of breach of data and protect business with insurance coverage formulated to address risks of business.

In order to avert phishing scam, it is important to keep informed regarding phishing techniques, thinking before clicking, establishing an anti-phishing toolbar, verifying security of sites, checking different online accounts on a regular basis, maintaining up to date browser, using firewalls and never delivering personal information.

Explanation with justification of two different actions that can be undertaken to assist in the process of management of risks that can subsequently support reduced level of risk appetite and risk tolerance

Risk appetite reflects exhaustive list of identifiable risks of a business concern. Again, risk tolerance represents overall amount of each one of the risks a business concern is willing to accept and aggregate influence of the risks based on critical enumerations of success, namely, earnings, capital or else value of shareholders. The intricate nature of particularly finance and banking segment causes effectual determination of appetite as well as tolerance of risk.

Question 1 – Learning Outcome 1 (10 marks)

Specific actions that can affect risk appetite and tolerance levels of risk

The risk of compliance has necessarily stemmed from the current banking crisis as a leading area of vital exposure. Even though banks have maintained responsive as well as comprehensive compliance operations for some time, owing to proliferation of novel along with updated rules and elevation of enforcement of compliance rules as well as directives is necessary for reduction of risk tolerance levels. Encountered with economic as well as regulatory environment that are both unpredictable as well as unrelenting, different bankers are presented with the threat of recognizing risks and instituting manageable levels of tolerance.

Effective management of risks

For the purpose of banks, identifiable risks include pre-defined level of credit, rate of interest, level of liquidity, operational factors, and compliance facets, strategic along with reputational factors. It is by means of effectual management of the given risks that can help banks in generating adequate margins of interest, collection of fee earnings and maintenance non-interest cost at a tolerable level. Therefore, all these factors can help in the processes of effective management that includes risk appetite as well as risk tolerance.

Explanation with justification of one recognised mechanisms JH Plc can adopt that will demonstrate effectual management to the regulator

– Instituting standards as well as reports

Establishment of standard as well as financial reporting can be considered to be sine qua non of particularly risk management arrangement. In essence, underwriting of standards, categorization of diverse risks and assessment of standards can be considered to be important tools that can be used by JH Plc as conventional tools for controlling risk. Management of JH Plc requires consistent analysis and rating of specific exposure to comprehend the embedded risks in the particular and the degree to which it needs to mitigate otherwise absorb these kinds of risks. Standardized financial reporting can be considered to be essential for financiers to assess quality of assets along with risks at firm level.

-Imposing specific position limits along with regulations

This business concern JH Plc can impose specific limits for the purpose of covering particular exposures to different counterparties, concentration on specific position compared to specific systematic risks. In general, each and every individual who can essentially commit an amount of capital has the necessity to properly behaved limit.

– Establishment of guidelines of investment as well as strategies

JH Plc might consider investment guidelines along with strategies for taking risk in the future period with respect to commitments to a specific area of the market, the degree of matching of asset as well as liability, or else the requirement to hedge against systematic risk at a specific period of time.

Explanation with justification of four significant technology/cyber risks

Explanation with justification of two significant categories of risk that will be of interest to EN Plc regulator

Analysis of risk of two insurers merged can be analysed using their risk registers. The risk registers of the former two insurers are merged into a single one for EN Plc, a newly established insurer.

• Competitive Environment: There is enhanced competition from particularly vertically assimilated along with properly capitalised players delivering insurance products and services. This can influence overall capability to attain visibility of brand along with strategic objectives. Also, traditional broadcasting advertising also sustains to migrate from particularly conventional to different other platforms influencing attainment of revenue targets of the corporation.
• Innovation in technology: Firms fail to anticipate trends in particularly technology, development of product/service, and delivery of product/service and consumption of content cam threaten association with customers and attainment of strategic business objectives.

(a) Explanation with justification of the way it is possible to ascertain value of asset while considering potential catastrophic risk events

Assets are bought as there is expectation to generate flows of cash in the upcoming period. In essence, there is a proposition regarding valuation of discounted flow of cash. Particularly, value of a specific asset is not what someone observes to be worthy but it is an operation of the anticipated flows of cash on the asset. Assets having predictable flows of cash can have greater values than specific assets having volatile flows of cash. In essence, there are two different ways of valuation of assets with specific risks:

– Valuation of risks: Value of a risky asset can necessarily be approximated by way of discounting the anticipated flows of cash on the overall asset over the life at a risk adjusted rate of discount.

In this case, asset has a life of particularly n years. E (CF_t ) can be considered to be expected flow of cash in time period t. Again, r can be considered to be rate of discount that replicates risk of flow of cash.

It is possible to replace the anticipated flow of cash with the guaranteed flows of cash and this can be assumed as an option (certainty equivalents) as well as discounts of flows of cash at specifically the risk free rate.

In this case, CE(CF_t ) can be considered to be certainty equivalents of particularly E(CF_t). Again, rt can be regarded to be risk free rate. The flows of cash can necessarily vary from one asset to another and this includes dividends for different shares, coupons along with face value for specifically bonds together with flow of cash (particularly after tax) for a specific investment undertaken by a business.

Therefore, it is possible to analyse and adjust rate of discounts for specifically risk in valuation of discounted flow of cash. There are certain individuals who have a preference towards adjustment of anticipated flows of cash for risk. 

1) Vehicles in the fleet are not on road and are garaged in Warehouse A. This reflects 100% damage of Warehouse A and contents.

Explanation of risk management action KC Plc can undertake to mitigate each of the four risks explained

2) Quality of analysis is dependent on input data

Asset Value of warehouse A building = £3.1 million

Asset Value of the Stock and contents in warehouse A = £2.2 million

Warehouse A also stores the vehicles in fleet.

The asset value of an individual vehicle fleet = £0.1 million

The asset value of the total vehicle fleet = £2.0 million.

Thus, the total possible loss if a catastrophic fire is started in Warehouse A = £(3.1 + 2.2 + 0.1 + 2.0) million = £7.4 million.

1) The probability that the warehouse and its contents will be destroyed in a catastrophic fire is 0.5

2) The data on key assets and values presented are used for the considered event set (fire break out) and are used for filling specific gaps in the historical knowledge, losses in project at specific return period and produce specific probabilistic estimates of loss

Thus, the total probable loss if a catastrophic fire is started in Warehouse A is 0.5 * £7.4 million = £3.7 million.

Explanation with justification of five significant actions that can be advised to different clients to lessen overall cost of insurance programme

Management of the food processing corporation can reduce overall insurance cost programme by undertaking the following actions:

– Minimization of risks: 

In essence, management of the firm can minimize risk for getting low premiums. In essence, carriers of insurance intend to insure liable clients. Essentially, a training programme for maintenance of safety or else risk management assessment can help in lessening overall likelihood of a claim, thereby making certain that premiums need to avert uncontrollable rate increases. In essence, preventable losses can be considered to be avoidable losses. Prevention can be considered to be worthy of cure. The data back-up system can also be controlled in a better way with institution of system.

– Analyse different policies yearly

For the present case, the management can think about reducing premiums of the motor fleet. In essence, this can be done by examining history of claims properly. Insurer can scrutinize substantiated information on claims. Information for the past 3 years can be analysed and frequency of compensation, different risk types as well as outstanding amount. Also, premium can be reduced by comprehending best strategies of the insurer. It is important to combine strategies to lessen premium costs. Combining public as well as employee liability can reduce premiums. Tailor made strategies can also be presented to firm.

Avoiding human error

-High Valued Vehicles in the fleet:

Management of the food processing firm can provide clear priority to highly valuable motor vehicles in the fleet. It is important to try and appoint particular drivers with safe track record for the purpose of driving vehicles of high value.

-Modification of deductible:

Management of the firm can enhance the deductible and lower overall premium. The algebra can be considered when determining what the business concern can reasonably afford in the specific event and it becomes imperative to present a claim. Large sized firms might controllably handle deductibles whilst small sized enterprises might possibly operate on a tighter margin and long for more limited outlays. In essence, there is no strict rule regarding the same. Each and every corporation might perhaps have the need to independently analyse its requirements, and arrive at a conclusion regarding the way a large deductible can be afforded.

-Management of discounts:

There can be carriers that necessarily specialise in the specific segment and might offer exactly the strategies needed at superior prices. There are different discounts and there is need to find the same. Management of the firm can look for different publications concentrated on the segment to get the lowdown on specific opportunities to save.

Borrowing for the purpose of investment can be referred to as leveraged investment. Leveraged investment implies that borrowing capital for a specific investment and anticipating profits to get amplified. In this case, FY PLc can experience catastrophic failures after establishing new mobile phones using borrowed funds. In itself, any investment is related to risks. The fundamental logic is that higher the returns, greater is the level of risk. Leveraged investment can lead to enormous accumulation of particularly debt that can potentially be disastrous.

Greater amount of debt can lead to higher amount of interest expense of the firm. Increase in interest expenditure refers to paying more for certain things than it is required if waited until bought with cash. The lender shall charge a certain percentage of the total amount of loan each year for utilizing money. In essence, in case of loans of long term period such as mortgages, interest disbursed can add to roughly or even more than the real purchase price. However, case of default of loans can lead to stress or else strained associations with lenders of finances. In addition to this, all loans acquired to loan to fund investment are necessarily float rates. Increasing rates can necessarily become a drag on particularly performance of investment for launching of new phones.

Avoiding hacking

If rate of return earned from the investment project for which funds are borrowed are less than the rate of interest on borrowed fund, then the project shall fail due to incurred loss. In addition to this, borrowing also enhances risk. Essentially, at the time when the stock market drops, and it happens on a regular basis and an unleveraged account shall also decrease. Nevertheless, in case if the accounting has been funded with 50% cash and 50% borrowed funds. This can be considered to be a substantial variance. In case of steeper decrease in case of market crash leveraged accounts got wiped, specifically the ones invested in low quality securities. Also, borrowing also bends process of decision making. In essence, the overstated influences of leverage on particularly performance of portfolio inspire higher risk taking at the time when markets are increasing and encourage terror when markets are crumpling. In essence, these can be considered to be human psychological reactions that can show the way to poor decision making/

For prevention of interest risk

– Management of the firm can include different interest sensitive items of balance sheet in particularly the risk position. For instance, liabilities for lease, receivables for trade along with payables can be considered in this regard. At the time when management of interest rate as well as management of liquidity are said to be closely associated, it might be sensible to add items that are not immediately sensitive to risk at the time of considering interest risk. In this case, identification and evaluation of positions of risk can be considered to be decisive facets for management of particularly interest risk. Also, management of the firm can consider higher level of integration, manage interest together with liquidity for the purpose of optimization of costs in creating and handling liquidity.

For prevention of risk from higher debt

– The management of the firm can lessen the likelihood of large amount of overdue disbursements that consequently become bad debts. Also, they can make sure before accepting any business orders that they are paid as per the contracts of the business dealing. The business can acquire tighter control by means of inclusive and thorough examination of business as well as reference checks before offering credit to different net customers. Also, the customer can institute limits for fair credit and notify when clientele intends to extend an pre decided limit for credit.

Avoiding extortion

Different stakeholders involved in a bid to establish an effective risk management process include external and internal stakeholders. Consultation can be considered to be important with internal as well as external stakeholders can be considered to be the initial step towards implementation of process of risk management. External stakeholders involve clientele of the firm, financing units, consultants or else contractors, partners as well as community. Also, internal stakeholders of the firm take in members of the board, members of the staff of the firm (that is the employees) along with volunteers.

Stakeholders are mainly consulted for the purpose of delivering various perspectives on likely risks as well as risk management. However, consultation might perhaps take place by means of formal manner namely conducting forums or else workshops, utilization of questionnaires for surveys, distribution of different feedback forms, delegation of accountability for development of strategies for management of risk that might be directly influenced or else seeking remark on policies of draft. Also, informal processes of consultation might perhaps take place by means of general discussion else wise observation at the time of interacting with stakeholders of the firm. In itself, development along with execution of risk management is mainly communicated to all pertinent parties all through the process.

Way stakeholders can contribute towards risk management procedures of the risk involving the overseas location

The advantages of engaging stakeholders comprise of :

– Multiple perspectives to diverse causes associated to risks

– Effectual controls of risk, treatment stratagems and active tracking owing to specific perspectives mentioned

Stakeholder participates in the process of co-ordination, financing, resourcing as well as publishing of stratagem for management of risk. These stakeholders have various roles that include the following:-

Understanding: These stakeholders have the need to strive to comprehend overall risks that are being illustrated

Informing: Stakeholders might have the requirement to deliver specialist information to the business concern for appropriate management of risk

Recognizing: Stakeholders might help in the process of identification of risk

Delivering: There are certain stakeholders that might be anticipated to deliver the essential resources for the selected action plan.

Training: In case if a specific plan of action calls for educating members of the staff or else customers, there is need to conduct training

Communicating: Information might have the need to be extensively distributed as part of the risk management procedure.

However, insurance firms can be considered to be one of the sectors that encounter certain strategic risks. Risk management can be considered to be a holistic structure that can help in management of potential downside of different disruptive risks, but also attain speedy growth by better preparation of capitalization on the ensuing opportunities.

Avoiding Phishing

The clients of the company can balance potential return of the product against the potential risk. In a bid to evaluate investment for different individual clients appropriately, clients can seek help of a financial advisor or money manager for creation of an accurate risk evaluation or else risk profile. Customers can therefore help the firm in understanding the needs of the clients, trends in the market, changing tastes as well as preferences of customers of the company for modifying the products.

Role of financing units of the corporation: The financing units can detect financing risk that is necessarily a manner of identifying that there are certain risks that cannot be controlled. The financing bodies can consider financing risk and take into account where the money is coming from to make payments for the same when the loss occurs. There are financing bodies can detect specific risks and analyse the costs related to the specific risks.  

Role of the board members: The role of the board needs to be limited to particularly oversight of management towards risk along with corporate issues that might perhaps affect overall level of risk. In itself, without becoming directly engaged in handling risk, firm’s board members can satisfy their role in particularly oversight of risk by:

-Development of policies as well as procedures for risk that is necessarily consistent with the strategy as well as risk appetite of firm

– Monitoring implementation of different risk management strategies

-Undertaking steps for fostering awareness regarding risk

Role of members of the staff (employees): Employees can cover a procedure to lessen uncertainty. The employees can enhance the bottom line by making the risky situation less risky. In essence, risk managers can decrease risk by means of selecting the actions to undertake for decreasing uncertainty. Insurance professionals can acquire cues from the entire world of management of risk to perform their jobs better and to make life for their clients better. This can be done by identification of risky situations, analysing detected risky events. After identification and analysis of the risk, the same needs to be controlled. The risk management procedure also includes development of awareness regarding the matter for lessening the uncertainty.

Explanation with justification of three significant sources of information that need to be considered at the time of developing new system of IT for the insurer

Different sources of information that can be used for the purpose of development of new system of IT for the insurer can be categorised as primary, secondary or else tertiary relying upon originality along with their proximity to the source or else origin. For instance, in the beginning, findings might perhaps be communicated informally by means of email and thereafter presented at assemblies before being officially presented at a primary source. However, the same gets published, they can be properly indexed in a bibliographic database and thereafter repackaged and remarked by others in different secondary sources. Therefore, information that can be used for the development of IT can be divided into three different types namely; primary sources, secondary sources and tertiary sources.

Explanation with justification of two different actions that can be undertaken to assist in the process of management of risks that can subsequently support reduced level of risk appetite and risk tolerance

Primary information Sources: The primary sources of information reflect the original materials and present information in original form and these are neither analysed nor condensed by others. Also, primary sources of information are necessarily of the specific period of time and this is something close to the period when the event actually happened. Also, primary sources also present unique thinking as well as report on findings or sharing of new information.

Secondary Information Sources: The secondary sources present descriptions, interpretations and evaluation of different primary sources of information. Secondary information presents remarks on and illustrates evidences delivered by primary sources.

Tertiary Information Sources: Tertiary sources of information can be regarded to be a problematic category of information. This includes work that presents primary as well as secondary information resource in a particular subject area. Also, this reflects specific materials wherein information gathered from different secondary sources can be reformatted and condensed to put it in a convenient way. Also, this includes sources that are again removed from different secondary sources.

The insurers have the need to utilize different information sources for development of advanced IT system. The information

Explanation of the potential impact on the insurer for each one of the three different sources of information

Needs of information keep on changing due to alteration in outcome of overall availability of information content in electronic format. Altering requirements of different users ascertain overall nature and characteristics of physical form in which content of information is presently made available for access of different users and utilization in electronic information environment.

The business model of the insurance company helps in illustrating different functions related to business procedures being modelled and business concerns that execute these functions. By way of depicting these actions and flows of information, a basis is generated for visualization, definition, comprehension and validation of the overall nature of the procedure. A data model delivers details of information that needs to be stored and is of primary usage at the time when closing product is creation of software code of the computer that is again utilized for a specific application or else preparation of functional specification.

Primary data is used for development of IT in the insurance company. In essence, primary research is conducted utilising questionnaire surveys and the researcher tallied, scored as well as tabulated all the responses mentioned in the survey questions. Also, the research undertakes survey personally with the participants. Furthermore, research on development of IT in the firm is performed after thorough consultation of journals and articles, books as well as magazines. All these can help in development of the data modelling.

Compliance Management

Again, secondary sources of information can be used for the purpose of supporting primary data collection for showing a clearer image of effect of information technology of the insurance firm.

Furthermore, tertiary sources of information can be said to be useful as these information are presented as materials in which information from different secondary sources are reformatted and concentrated 

Explanation with justification of four significant actions that could be undertaken to advance the risk maturity of the risk management process of the merged insurance broker

Management of the merged firm can undertake enterprise risk management program that consists of sustainable, repeatable as well as mature processes of management of risk. At the outset, management of merged insurance firm can take self evaluation of risk maturity and business concerns can benchmark the way their current risk exercises as per the standard model. The business concern can adopt the following actions for advancement of the risk management process:

Acceptance and adoption of enterprise risk management procedures: After proper self assessment of mature procedures, it is important to adopt the enterprise risk management procedures. In essence, this specific attribute computes overall degree of executive or else support of the board level for particularly management of enterprise risk. Adoption of this attribute of risk management can measure overall degree as well as extent to which merged insurance firm has accepted and implemented methodology of ERM all through the culture as well as business decisions and way these programs pursues best exercises to recognize, evaluate, mitigate and scrutinize risks. Thus, this acceptance can help in obtaining a clear, shared comprehension of the entire project. In essence, this stage involves consolidation along with elaboration of information regarding the project. Also, defining the risk and focussing on the risk management process can assist in obtaining a scope of the process in terms of objectives and who the risk management is mainly for, and plan the procedure with respect to time as well as resources available, and choice of analytical approach. Furthermore, adoption of risk management process can help in obtaining a comprehensible, shared understanding of both threats as well as opportunities. This involves action of searching for different risk sources, responses as well as secondary risks.

Management of risk appetite: In essence, this specific attribute can analyse overall level and degree of awareness around trade off between risk as well as return, liability for risk, illustrating tolerances of risk, and whether the business concern is effectual in bridging the gap between potential as well as actual level of risk. For the purpose of management of risk appetite, management of the firm can refine classification of risks, explore different interactions and formulate priority as well as present orderings.

Performance Management: In particular, management of the insurance firm can ascertain degree and extent to which a business concern can execute vision as well as strategy of the firm. This can analyse overall strength in planning, communicating, enumerating important enterprise objectives with a risk based procedures and the degree to which progress deviates from anticipations. Also, management of the firm can maintain business resiliency along with sustainability that can analyse overall degree as well as extent to which business continuity, planning of operation as well as other sustainability of actions are approached with risk based mechanisms.

Management of the firm can scope ownership strategy with respect to objectives, different parties engaged and accountabilities. Management of the firm can plan the agreements with respect to work necessary, diverse resources along with timing of diverse tasks. Administration of the business concern can comprehend the risks as well as rewards that are important for the purpose of estimation. In addition to this, management of the corporation can also scope overall uncertainty of chosen risks and refine different approximations wherever appropriate. This refers diagnosis of important difficulties and scrutiny of implications of diverse responses. For the purpose of evaluation, management of the firm can assimilate sub sets of varied risks, portray various effects and diagnose varied implications.

Management of the firm can generate a project base plan and related risk management schemes. This necessarily takes in consolidation along with explanation of analysis, selection, and elaboration of different plans along with justification of different plans. Furthermore, administration can engages in the process of monitoring and controlling advancement along with development of specific plans on a rolling basis. Thus, administration can handle planned actions, track progress, handle crisis and roll different plans of action in the forward direction. Additionally, a further consideration can be towards examination of progress of project up to now. At an early phase in the project life cycle, a wide based qualitative approach to identification of risk and management might prove to be effectual.

Description of two different benefits of attaining risk maturity in the risk management procedures in the merged insurance broker

Attainment of risk maturity can help in proper identification of risk management discipline and that is also a mandate by the internal auditors. Risk specialists might need to examine whether programs of risk management are meeting expectations and this might even provide potential information on the way to make the most of the potential of enterprise risk management. Standard of risk management that is attained through risk maturity can help in formulating strategies for better management of risk. Also, the significant part of development of sustainable enterprise risk management in the process of attainment of risk maturity can present a direct association to betterment of performance of the enterprise. Attainment of risk maturity can also assist the organization to make better strategies for risk management irrespective of the current standard of management of risk.  

The solutions of enterprise risk management that leads to risk maturity have the benchmarking equipment that can direct the way towards improvement and can be made available from the starting date of installation. Benchmarking can also deliver vivid picture of where the risk management currently stands. There are various risk programs developed for risk maturity that can be broken down into different success factors as well as competency drivers . Also, the benchmarking solutions can assist managers to evaluate adherence of the concern to standard of industry and scrutinize success performance of the business concern. Also, it can guide the business in exploring training of the members of the staff and development of policy and learn more regarding defensive activity statistics. In addition to this, attainment of risk can help to baseline capacities and enhance risk management procedure.

Sources must be referenced in the body of your answers as well as in your reference list. See the M67 Specimen coursework assignment for examples of how to reference correctly in text and in your reference list.

Reference List:

Anolli, M, T Giordani, & E Beccalli, Retail credit risk management. in , Basingstoke, Palgrave Macmillan, 2013.

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Dionne, G, “Risk Management: History, Definition, and Critique.”. in Risk Management and Insurance Review, 16, 2013, 147-166.

Glossary of insurance and risk management terms. in , Dallas, TX, International Risk Management Institute, 2012.

Hopkin, P, Fundamentals of risk management. in , London, Kogan Page, 2012.

Louisot, J, & C Ketcham, ERM – Enterprise Risk Management. in , Hoboken, Wiley, 2014.

M Acharyya & C Brady, “Designing an Enterprise Risk Management Curriculum for Business Studies: Insights From a Pilot Program”, in Risk Management and Insurance Review, vol. 17, 2014, 113-136.

Meyer, T, & Genserik Reniers, Civil Engineering Risk Management. in , De Gruyter, 2016.

Monden, Y, Management of service businesses in Japan. in , Hackensack, NJ, World Scientific, 2013.

Pinto, C, Operational Ri