Management and Organizational Studies 2275A/B Chapter Notes - Chapter 3: Enterprise Risk Management, Debt Management Plan, Risk Management

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Many factors determine the success of business organization. It must be able to analyze and evaluate its activities, forecast changes in business environment and react effectively to unexpected development. To deal effectively with legal environment, the business will reduce the likelihood and impact of mistakes that are: costly, distracting, harmful. The preventative approach requires a thorough evaluation of the risk associated with the businesses activities in order to minimize their impact. The reactive approach recognizes the legal problems may still materialize, so the rm needs a strategy in place to deal with such developments. These two approaches are combined in a management plan that reduces the impact of legal risk on the organization. This process is part of a broader exercise called the enterprise risk management- in which all risks within an organization, are assessed and managed. Attempts to identify and then manage threats that could generate negative legal consequences.