Problem Set #2

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School

Purdue University *

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Course

GM594

Subject

Information Systems

Date

Dec 6, 2023

Type

docx

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Uploaded by ChancellorHeron3694 on coursehero.com

Problem Set #2 #1 Adopting a risk management system offers an array of benefits to an organization. Early risk detection allows proactive risk mitigation. This, in turn, reduces the likelihood and impact of adverse events, safeguarding the organization's assets and reputation. Also, the organization must stay within the legal boundaries. Furthermore, it elevates the decision-making process by furnishing valuable insights into potential risks, empowering the organization to make informed and prudent choices. Implementing a robust risk management system promotes a culture of accountability and risk awareness among employees, resulting in a safer and more secure work environment. An important part of organizations is Risk Management. It involves executing various processes and tools to identify, assess, mitigate, monitor, and report risks. Specialized software and tools are often used to collect, analyze, and manage risk-related data efficiently. The risk management system is customized to meet the unique needs, industry standards, and risk profile of an organization, facilitating a systematic approach to recognizing, evaluating, and addressing risks across various operational areas. Security and capacity are pivotal elements within the risk management process, contributing significantly to its effectiveness. Security measures are necessary to safeguard an organization's data and information, ensuring that sensitive data is protected from potential breaches or cyberattacks, which helps to maintain data integrity and confidentiality. Capacity can be described as an organization's capability to proficiently handle and respond to risks. It involves the resources, expertise, and infrastructure required to address risks promptly and efficiently.

Both security and capacity are critical components of risk mitigation, ensuring the continuity of critical operations within an organization. The main objective of a risk management system is to systematically identify, evaluate, and mitigate potential risks to safeguard an organization from harm and financial losses. It aims to establish a structured approach for comprehending and handling risks, enabling the organization to make well-informed decisions and allocate resources judiciously. The ultimate goal is to improve the organization's resilience and adaptability to unforeseen challenges, ensuring long- term success. There are different methodologies for managing risks systematically. These methodologies help in identifying, analyzing, and prioritizing risks. Some standard methodologies include the Delphi technique, SWOT analysis, Monte Carlo simulation, and Failure Mode and Effects Analysis (FMEA). There are different techniques to assess and manage potential risks. he Delphi methodology entails the consolidation of expert viewpoints to attain a collective agreement, while SWOT analysis systematically assesses an organization's internal strengths and weaknesses in conjunction with external opportunities and threats. Monte Carlo simulation relies on statistical modeling to provide a quantitative assessment of risks. Lastly, FMEA identifies and prioritizes potential failure modes within a system. By employing these methodologies, organizations can systematically evaluate risks and make data-driven decisions in the risk assessment process. #2 Section 1: Introduction

This document aims Tessile, S.A. as a textile manufacturing company that is currently expanding into new markets and industries. As the company faces new challenges and opportunities, it is important to evaluate potential hazards, threats, and risks associated with its current business strategies. Informed decision-making and proactive risk management are crucial for long-term success. Therefore, this risk assessment process aims to provide Tessile S.A.'s leadership and stakeholders with a comprehensive understanding of the challenges ahead. The document employs a structured methodology involving SWOT analyses and risk assessments across various dimensions to furnish the company with the insights required to navigate risks prudently and harness growth prospects effectively. Ultimately, this initiative aims to position Tessile, S.A. as a resilient and innovative entity in the global business arena, viewing risks as catalysts for future success. Section 2: Methodology for Risk Identification To identify potential issues and opportunities associated with Tessile, S.A.'s current business strategies, we follow a structured approach. We employ various methods and tools to gain a comprehensive understanding of the situation. These tools include SWOT analysis to scrutinize the company's strengths and weaknesses, financial analysis to assess the financial aspects, market research to gain knowledge about the market, and we also listen to the feedback of various stakeholders like customers and employees. This approach ensures that we do not overlook any possible threats, as well as opportunities, and provides us with a complete perspective of the risks and possibilities. Section 3: Business Strategy Review

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