MCS 3040 Chapter Notes - Chapter 3: Enterprise Risk Management, Crisis Management, Debt Management Plan

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 3040
• Professor: Joseph Radocchia

Document Summary

Enterprise risk management: the process of identifying and managing all business risks: contains completing a comprehensive assessment of legal risk exposure and developing a legal risk management plan. Legal risk management: attempts to identify and then manage threats that could generate negative legal consequences such as nes, penalties, compliance orders, license suspensions, and liability for the payment of money. 1: evaluate risks, devise a risk management plan. Step one: identify the legal risks: most critical step, if not identi ed it can"t be managed. You need to : assess the organization"s functional areas, marketing and sales, hr, finance & accounting, information systems etc, review the organization"s business decisions, examine the organization"s business relationships, analyze the organization"s operations and transactions. You need to : assess the probability of loss, assess the severity of loss, the above can offset each other. You need to : avoid or eliminate the risk, reduce the risk, transfer the risk, retain the risk.