Communicable and Non-Communicable Diseases

This assignment delves into the differences between communicable and non-communicable diseases. It requires a clear explanation of each type of disease, outlining their distinctive characteristics, modes of transmission (for communicable diseases), and potential consequences for individuals and society. The document emphasizes understanding the factors contributing to both types of illnesses.

BPP Coursework Cover Sheet
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before the cover/title page of your submission.
Programme MSC Management with streams
Module name Enterprises Risk Management
QAA Level 7
Schedule Term Second Term
Student Reference Number (SRN)
Report/Assignment Title “Airbus Group”
Date of Submission
(Please attach the confirmation of any
extension received) 26th April 2016 at 11:59 PM
Declaration of Original Work:
I hereby declare that I have read and understood BPP’s regulations on plagiarism and that this is my
original work, researched, undertaken, completed and submitted in accordance with the requirements
of BPP Business School.
The word count, excluding contents table, bibliography and appendices, is __2699_ words.
Student Reference Number: BP00 Date: 26/04/16
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and awards for programmes. Please note, submission is your declaration you are fit to sit.
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BPP Business School
1

Enterprise Risk Management
(Group Report)
2

EXECUTIVE SUMMARY
Risk management is the practice of managing the risks which may affect the operation
of enterprise in a negative way. In addition to this, it can also be said that risk management is
being regarded as the systematic process wherein manager of firm identified varied risks
which are associated with its operation and accordingly it will make measures with respect to
mitigate the same in an effectual way. For the enterprise, it is very essential that it should
assess different type of business risks. This is because; if the given thing is not done by the
corporation at that time significant impact will be seen upon the sales and profits of enterprise.
Furthermore, lack of consideration of varied risks by firm will also lead to hamper the brand
image of firm in the competitive business environment. In the given assignment, different
type of risks are assessed which is being faced by the firm named as Airbus. Here, in order to
depict the number of risks, a risk management chart has been prepared. In addition to this,
with an aim to assess the seriousness of the assessed risk score card has been used. Herein,
risk which rated high has been considered as major risk which needs to be considered by
Airbus at first. Likewise, ranking has been allotted to other risks too.
In accordance with the given context, from the conducted analysis it is analysed that
there are some risks which are rated above 15 points. These risks include security, ergonomics
and environmental, operation in context of IT etc. Hence, these given risks should be
considered by the corporation at first. Besides this, there are some other risks also which are
rated between 10-14 score. It consists of operational, technological, reputational and data
protection etc. However, there are some other risks also which does not cause much impact
upon Airbus but will lead to hamper the sales and profits of enterprise in some sort of way. It
includes economic risk. Here, with an aim to present all these given risks in an effective
manner, risk map has also been prepared in the respective project. In addition to this, it has
also been assessed from the given risk resister that the risks which are highlighted in red needs
to be considered by the firm at first. This is because; lack of consideration of the same will
lead to direct impact on the operations of the cited company.
Moreover, it has been identified in the report that the Airbus is facing various issues in
regard to organisational factors that impacts the working of organisation in diverse manner.
Analysis of various risk has been conducted and identified that the factors that are rated over
15 are not acceptable and can harm business in diverse manner. In addition to this, the factors
that are scaled as a high risk factor are classified as breach of security, environmental,
cybercrime, employ life risk and financial. At the scale of moderate risk are referred as
3

operational, technological and data protection issue. Economic risk is the only factor that is
considered as risk appetite.
Furthermore, it has also been found from the risk register that the risk which is
highlighted in red cannot be acceptable by any company. It is the reason because of which
firm should address the given risks at first and after that, it can take actions for the other risks.
After that, organization should give consideration to others which are highlighted in yellow.
These risks consist of operation, data protection along with the health and safety. However,
the risks which are in green colour should be addressed by the firm at last. Furthermore, there
are some opportunities identified which can be utilized by the manager of firm such as Airbus
with an aim to maintain its competitive position in market and mitigate the assessed risks. The
opportunities include using advanced software with an aim to protect the important data of
firm from any mis-happening. Furthermore, firm also has the opportunity with respect to
manage the reputational issue by using skill audit chart. With the help of given chart,
information about that skill can be gained by corporation in which its firm is hindering.
4

TABLE OF CONTENTS
RISK Management Practice in Airbus Group.............................................................................6
RISK MAP................................................................................................................................27
LIST OF RISK TABLE.............................................................................................................28
REFERENCES..........................................................................................................................29
Appendix...................................................................................................................................32
Risk rating............................................................................................................................37
Risk impact...........................................................................................................................38
Conceptual framework for risk assessment..........................................................................39
5

RISK MANAGEMENT PRACTICE IN AIRBUS GROUP
In order to overcome risk, the management of Airbus Group has started focusing on
wide use of IT tools to support its enterprise risk management approach. Moreover, the
business firm has also concentrated on Active Risk Management. It helps organization to
strengthen the enterprise risk management in diverse manner (Olson, 2008). Current risk
management process of the Airbus Group plays a key role in decision making process of the
management. ARM 5 is structured method that is adopted by the organization to provide
functionality and security.
ARM method is also considered as a flight safety risk method that helps organizations
to overcome various risks. It focuses on various risks that can impact overall business.
Classification of risk can be as financial risk, environmental risk, reputation risk, operational
risk, security risk, etc. It overcomes risk in three different contexts such as individual safety
risk, identification of safety issues and safety assessment. With an improved focus on these
three steps the management of Airbus can overcome diverse security issues that impacts
overall work culture. Safety Issues may need to be re-assessed on a regular basis to ensure
that the risk is maintained at or below the acceptable level. ARM Unplugged ensures data
integrity and delivers the complete view of risk exposure for management. Its ease-of-use that
will help in drive adoption of a common risk process. It also removes the risk silos keeping
risk information fragmented. In addition to this, it can be said that the ARM5 will also assist
in overcome risks that are associated with the financial and operational aspects. It also allows
management of Airbus to work effectively in order to defeat the safety issues. It is a system
that improves the transparency in an organization and improves various development
opportunities. It also enhances the personal engagement within organisation so that risk can be
overcome in more effective manner. Present risk management practice within business
provides collective information across multiple networks and entities. Present risk
management practice within business provides collective information across multiple
networks and entities. It has been spotted that the security is one of critical risk within
organization because it has various government contracts in military industry (Chitakornkijsil,
2010). Company also considers standard software implementation as critical aspect in order to
maintain the elements. Risk management practices within Airbus Group are performed in
integrated manner at both risk and company level. Organization also focuses on COSO
standards that are refereed as programme driven company. Server systems are well maintained
according to standards and frameworks of integrated risk management. Reporting process also
6

plays significant role in risk management practice of Airbus group.
In addition to this, COSO framework gives description about different types of steps
which firm can adopt with an aim to identify different types of risks which are occurring in
the cited firm. The process starts with setting up of objective. For example, Airbus has the
objective to deliver high quality products to the buyers. Here, after setting the objective,
manager of firm should identify different events which lead to create hurdle in the task for
attaining the framed objective. For example, firm will not be able to achieve the given
objective if its employees would not possess the skills of producing high quality of goods and
services. On the completion of given step, different types of risks will be assessed by the
manager. In the next step, firm will give an effective response towards the assessed risk and
thereby, controls the activities which are occurring in the corporation. Hence, it is correct to
say that COSO frameworks play an important role in the task of assessing and managing the
risks which is being faced by the enterprise. Furthermore, the manager of cited firm can also
take help from ERM risk governance. It is the hierarchical structure wherein each person has
to fulfil different types of roles and responsibilities (Chapman, 2011). Enterprise risk
management is the business activity that involves different methods and processes used within
firm in regard to manage the risks and opportunities related to the attainment of their
objectives. However, ERM provides a framework for risk management that typically includes
various events or circumstances to business objectives and attain desired targets. Hence,
through identifying the risks and opportunities it helps business in protecting and creating
value for their stakeholders. ERM risk governance helps in integrate risk management into
their business and strategic processes to enable them to take risks in order to create value and
respond to mitigate the risks. It is essential for business to implement ERM program so that
firm can identify and quantify all the risks and not just compliance with that in order to attain
desired results. It also identifies emerging risks more quickly and enhance the capabilities of
the risk management system so that it can be handled effectively and efficiently.
Risk appetite can be defined as the level of risk which firm is prepared to accept and
thus it benefits firm to build innovation and the threats that change inevitably brings. It is
essential for organization to identify the risk appetite so that the risks which are acceptable, no
mitigation need to be provided for them. Here, from the below designed table of risk
management practice, it can be evaluated that within economic risks, risk of recession lies
under risk appetite/threshold. However, it assesses that at the time when there is low demand
of helicopters it causes dropping in profits and if Airbus Group makes high investment
7

therefore, it helps in rising the defence level of country. Furthermore, the economy of the
country is fluctuating its demand and supply of aircraft's which does not get affected because
of high demand of defence instruments. Thus, adopting such risk threshold influences firm to
achieve high sales and profitability and thus no mitigation is provided to such risk factor.
Legal requirements are also considered in optimistic manner to ensure about
outcomes through use of Active Risk Management practice (Lam, 2014). Company also have
mapping according to four key elements. Classification of factors can be as strategy,
operations, reporting and compliance. Organization also promotes engagement of employees
to cut down the risk and lead business to impressive level of success (Hoyt, 2011).
Risk threshold probability/ability
IMPACT
1 2 3 4 5
PROBABILITY
5
4
3
2
1
Impact Likelihood
1 Negligible Rare
2 Minor Unlikely
3 Considerable Possible
4 Major Likely
5 Catastrophic Almost contain
In addition to the probability, it can be said that the measure of the chance that event
8

will occur and provide result in respect to the experiment. It is the quality or state of being
probable to the extent to which something is likely to happen or be the case. On the other side,
impact is the action of one object coming forcibly into contact with another. In other aspect, it
is a measure of change that an activity force on the factor. In order to have effective risk
assessment, it is significant for firm to consider these two aspect as critical factor. In current
process, if the likelihood and impact multiplication is above 15 then it will be not acceptable.
However, if total calculation is below 15 then it will have considered as acceptable risk and
threshold condition will be 15 in the risk assessment process. Acceptable risk means the risk
factor can be acceptable because it does not have great influence on the operational activities.
Threshold means the activities can impact the work performance in positive as well as
negative manner according to nature of the business.
9

Ri
sk
N
o.
Risk
Category
Risk Description & Information
Sources
Current Mitigation Action Lik
elih
ood
Imp
act
Risk
Rati
ng
Acce
ptabl
e
ratin
g
Mitigation Response
1 Security Breach of security
Airbus Group deals in various
defence and space products with
different government authorities
(Driver, 2012). It can be assessed
that company is required to adopt
various security measures in order to
protect the company from outside
agencies and thus carry out effective
work within business. It is essential
for Airbus to protect their
environment by keeping passwords
so that confidential data cannot be
leaked. Also, it is essential for
company to undertake core
competencies such as Slack/Jhonston
in order to protect the data
effectively and thus carry out the
business properly. It helps firm to
develop competitive advantage over
rivals and attain business goals.
Organization is focusing on APT
security check and improved use
of ATOS technological tool in
order to meet goals effectively. X-
ray, B-ray telescope and 3D
technology is also considered
(Arena, 2010). It is not acceptable
because it the breach to security
that may impact its business in a
negative manner. Any kind of
security breach will influence its
relation with government
authorities and may create further
issues.
It is rated as 4 in likelihood
because the numbers of unethical
aspects are focusing on activities
that can breach the security
aspects. Its impact is rated as 5
because company deals with
government and any kind of
security breach may affect the
relation with government.
4 5 20 No Special monitoring
committee that
reduces the risk factor
in context to security.
Proper installation of
CCTV and other
security tools that
could ensure about the
monitoring process
(Wu, 2010).
(Refer to Appendix)
10

2 Environme
ntal
Risk of emission compliance
Airbus group aircraft engine effects
the environment through air
pollution. It has been assessed that
the emission of the engines are
around 70% of CO2 and slightly less
than 30% of H2o and thus lowes by
1% of Nox which affects
environment.
Co2 emission risk
Airbus Group is one of leading
aircraft and helicopters
manufacturing firm so the carbon
increase issue in environment is one
of key issue (Scorecard, 2010).
Production of aircraft requires
various natural resources and
handmade materials such as fire,
metal, etc. Co2 emission is one of
critical risk for the environment
because it may cause health of public
(Mandaraka, 2014).
EU trade commissioner puts a
high pressure upon the company
directors to adopt additional
support packages for Airbus.
Hence, in order to avoid any legal
action taken by the firm it helps in
achieving desired targets.
Organization has set out target to
reduce the Co2 emission by 20 %
till the end of year 2020. Airbus
Group is looking forward for
technological up-gradation in
order to reduce the carbon ratio
during flights. Noise of air
engines has also reduced through
use of technological equipment’s
(Monahan, 2008). Engineers and
production team is working with
various experts to reduce carbon
footprint. Water treatment system
are also playing key role in
pollution control (Olson, 2008).
It is referred as 5 because the
carbon emission is one of the key
issues that affect the
environmental aspects. On the
other side, its impact is considered
at a scale of 4 because the
government and other authorities
are focusing on eco-friendly
aspects. Any kind of avoidance
will impact business at a wide
level.
5 4 20 No Special manufacturing
plant design is
advantageous to
reduce the resistance
of the Co2 in air.
Carbon measurement
systems or tools
adaptation can cut
down the risk factor in
context to
environmental aspects.
(Refer to Appendix)
11

3 Operation
al issue
Risk of delay in production
Aircraft manufacturing company can
also face various issues due to
improper consideration on
operational activities
(Chitakornkijsil, 2010). Operations
in different geographical areas may
enhance the number of procedures
that may also increase operational
risks at different levels of business.
(Refer to Appendix)
Airbus Group is continuously
focusing on various developments
in its structure to ensure about
operational activities. Number of
technological updates and
alliances with ports, air academy,
etc., are beneficial for the
organization (Lam, 2014). Value
chain system improvement
actions are also taking as a critical
factor because it helps in
accomplishment of goals and lead
business to impressive level of
success (Chapman, 2011). (Refer
to Appendix) It is the reason that
it covers the scale of 3. Its impact
is referred at 4 because delay in
production may impact the
government’s working. It will
influence their relationship with
partners.
3 4 12 Yes
12

4 Technolo
gical
Risk of rapid changes in technology
Company is dealing in aircraft
products so it is necessary for
management and development team
to keep updated about technological
changes. Rapid modifications in
technology can create conflict
situations for company (Scorecard,
2010). For example, the Airbus
Group currently focusing on
reduction of noise pollution
technology but the technology has
changed in context to fuel efficiency.
(Aydin, 2010). Number of
technological changes may also
create negative impact on the
business activities. Aircraft also faces
technological issues due to improper
maintenance and other standards.
Aircraft and helicopter crashes issue
are most critical aspect for the
organization and it may influence
growth of business in diverse
manner.
Varied researcher have explored
Number of assessment process in
their study and these process also
has been adopted by the
management of Airbus Group in
order to meet technological needs
and reduce risk of technology
(Monahan, 2008). In the support
of this, management of Airbus
Group has introduced aircraft
check system that ensure about
technological issues within
products. Risk of rapid changes in
technology is considered at scale
of 3 because the research and
development department does not
perform technology innovation
without permission of
management. Its impact is 4
because the technological changes
affect the overall working of
organization.
3 4 12 Yes
13

5 Operation
s in
context to
IT
Cybercrime related risk and failure
issues.
As Airbus Group deals mainly with
government authorities so the
hacking and terrorist involvement in
operations is also one of critical issue
for the company. Heavy dependent
on electronic system may also cause
negative outcomes to the
organization as well as employees. It
has been identified that the failure of
systems that created negative
outcomes. Company can not have
operational activities without any
consideration of the IT infrastructure.
Company may face issue of
information flow which may
influence launch of crafts.
Organization is currently focusing
on application of information
technology security system so that
risk can be identified in
appropriate manner (Damodaran,
2010). Company is looking
forward to install various sensors
and equipment’s that can ensure
about cybercrime. (Refer to
Appendix) Likelihood is 3
because it is not easy for cyber
hackers to access the government
sites and documents as company
works in collaboration with the
government. Impact is 5 because
it will influence the overall
working in a diverse manner. It is
also considered as a security
breach. To avoid system failures,
a stronger programme to integrate
system engineering. It is an
approach used to handle the
dynamics of large, complicated
system.
3 5 15 No Government can play
a key role in
infrastructure
development so that
proper measures can
be considered to
reduce cyber crime
aspects. Alliances with
local authorities are
also advantageous for
continuous
improvement in
cybersecurity aspects
(Tamasi, 2011). (Refer
to Appendix)
14

6 Safety Risk of employee’s life
It is one of critical issue for
organization to operate business
effectively in socio-political aspects.
It has been spotted that the
production branches of military
sector goods faces issues regarding
employee’s security (Wilke, 2014).
Workers expect that the business
firm provides food, water, medical
supplies in appropriate manner. Any
kind of avoidance may impact
morale of employee's in negative
way or create conflict situation
among members. Improper training
can also create dangerous conditions
for the business.
Company is currently focusing on
Smartphone applications to
provide guidelines and
communicate with employees in
appropriate manner. Tracker
system application has also
installed to ensure about the
safety of employees. It can be
assessed that safety factor has
been given 3 rating at the
likelihood thus; it is essential for
company to provide safety to their
workers and need to protect them
from any harm. However, it
possesses 5 rating at the impact
column which is the reason it
states that risk for employee’s
safety is high. Therefore, Airbus
needs to implement effective
measures so that they can attain
the best results and would not
affect the individuals.
The risk of employee’s life is also
one of the key factors so it cannot
be avoided in any circumstance. It
is necessary for the management
to ensure about these aspects
because any kind of avoidance
may create a legal barrier for the
organization. Company may face
failure issues.
3 5 15 NO Airbus Group needs to
focus on activities that
can create better
awareness among
employees in regard to
safety measures.
Number of safety
issues occurred within
production scheme
due to improper use of
safety tools. Another
reason is lack of
awareness among
employees about use
of safety tools so these
kinds of measures can
enhance protection
level and reduce
potential of the risk.
Safety and security
representative can also
have direct
communication with
employees on regular
basis to understand
safety issues in
appropriate manner
and design strategies
to overcome it.
Meeting with
employee's can also
provide information
about ideas that can
overcome safety
issues in optimistic
manner.
7 Financial Loss of income and increased costs
due to exchange rate fluctuations
Production of aircraft's and
helicopters requires high investment
Management of Airbus Group is
currently focusing on various
activities that can provide
financial resources in appropriate
5 3 15 NO It is essential for
business organization
to have advancement
in its brand image so
15

and resources. In other aspect, it can
be said that the low options available
at energy has increased the cost of
operations in diverse manner. Oil
prices changes also create few crises
issues for the organization. Improper
availability of the financial resources
may influence business operational
activities in negative manner (Wilke,
2014). In the support of this, it can
be stated that the high demand of
finance may create conflict situation
for the business firm and lead
business to negative aspects. It is
also possible that if company
goodwill in market is not appropriate
then organisation may also face
financial issue. This is because the
decrease in goodwill impacts the
perception of investor and create
such issues.
manner. Company is also
considering its alliance scheme as
a great source that provides
financial sources in appropriate
manner. Cost advantages over
company also facilitates business
to improve overall financial
condition and lead business to
impressive level of success. Other
than this, frameworks are also
designed by the authorities to
ensure that the company is having
easy availability of the financial
sources. Improved level of
working with alliances also
facilitates business in overcome
issue effectively (Tamasi, 2011).
Reliability, efficiency and scope
are also well maintained within
organization. Here, business
possesses high likelihood risk of
not having finance i.e. 5 therefore,
it can be assessed that Airbus
requires possessing effective
financial measures so that they
can produce required helicopters.
Thus, for this, business is required
to undertake joint ventures with
different financial institutions or
to take loan facilities so that they
can enhance their business.
Further, it has low impact upon
the firm i.e. 3 because it owns
innovative technology and certain
source of finance in advance so
that effective use of finance can
be done.
The production of aircrafts
requires high level of money as it
is essential for the organization to
ensure about it. If Airbus is not
that financial sources
availability can be
improved in optimistic
manner and lead
business to impressive
level of success.
Number of quality
management
techniques can be
adopted by the
management of Airbus
Group in order to
improve quality of
product because it
impacts positively on
the brand image of the
firm. Other than this,
organization can also
consider activities that
can improve presence
over online mediums
as it also enhances the
potential availability
of sources that can
provide finance.
Improvement in media
presence is also
beneficial to get easy
approach to sources
like banks, investors,
etc. Company can also
have more and more
alliance with other
competitors so that
things can be managed
in appropriate manner.
Other than this,
company can also
focus on investigation
activities that can
provide validity to the
16

having appropriate funds, then the
new research and development
with regard to technology cannot
be accomplished. In this regard,
company is having regular
interaction with employees so that
goals and objectives can be
accomplished in desired form.
Number of meetings are also
being conducted to ensure about
goodwill aspects.
sources that can
provide sources in
appropriate manner
(Damodaran, 2010).
Innovative
frameworks can also
have designed by the
authorities to ensure
that the company is
having easy
availability of the
financial and other
sources.
17

8 Data
protectio
n
Risk of leakage of confidential
information of firm
It is essential for Airbus Group to
protect the data of purchasing and
selling helicopters so that it cannot
be leaked to others. Also, it is
significant for organization to
maintain privacy and security in
order to protect the personal
information (Hoyt and Liebenberg,
2011). Also, as per the government
policies and restrictions it is crucial
for Airbus Group to identify different
measures so that desired results can
be attained. It is significant for firm
to protect the data as it is confidential
and thus do not leak it to other nation
so that safety and security can be
managed appropriately.
The likelihood of data protection
is low i.e. 2 therefore, it
safeguards firm to protect the data
from any type of leakage of
confidential information by
locking the computer system
through password and thus,
protecting the information of
consumers as well as employees.
While, it has high impact on the
business which is assumed at 5 in
which it states that if firm data is
leaked then it affects the
operations of firm in the market.
Hence, business is not able to
protect or maintain the privacy of
data. Here, it can be assessed that
Airbus Group management is
focusing upon taking corrective
action by developing passwords
for the computer system in which
details are kept. Thus, it helps
business to safeguard the data and
thus assists in avoiding the
situation of losing. Further, there
are varied loopholes in protecting
the data therefore; proper
measures need to be undertaken
so that desired output can be
attained. Government is required
to develop different policies and
practices so that selling the
helicopters to unauthorized person
need to be avoided. Thus, it helps
in mitigating the risks so that best
results can be attained (McNeil,
2013).
2 5 10 Yes
18

9 Economic Risk of recession and production risk
For instance, low demand for
commercial helicopters can cause
dropping in profits and if Airbus
Group make high investment
therefore, risk factor is also very
high. However, as per the current
demand it aims for business that
currently the demand for aircraft and
helicopter is rising in order to raise
the defence level of country
(Moeller, 2011). Further, the current
economic situation of the country is
facing recession issue therefore
business is required to shift the
alternative sources of energy. It can
be evaluated that tax incentives have
decreased because of the
misconception that defence affects
the economic growth of the country.
Airbus intend to meet the large
number of new orders for aircraft,
therefore the ability to meet this
target is highly risked because it
depends primarily on the availability
of raw materials, parts, suppliers
performance and subcontractors
It states that risk of recession in
likelihood is low i.e. 3 which
states that firm does not possess
huge risk of facing economical
risk. For instance, if country is
facing recession then too it does
not affect the operations of firm in
the market. However, it does not
impact the operations of firm in
market i.e. 2 as recession factor
does not affect the operations of
Airbus. However, economy of
country is fluctuating therefore,
demand and supply of aircraft
does not get affected because
there is high demand of defence
instruments and thus, Airbus
Group provides effective products
and services to customers so that
desired targets can be attained.
Through raising sales and
profitability of business,
economic growth can be attained.
It also assists business enterprise
to enhance their profitability ratio
by supplying required helicopters
in market and thus, managing the
sales so that desired profits can be
attained (Sweeting, 2011). In to
the final assembly line in
Toulouse. The company is
confident to have the skilled
teams and the right solutions to
deal with any production problem.
3 2 6 Yes
19

10
Health and safety Risk of accident at workplace
It is essential for business to
maintain health and safety of
employees as per the Employment
Law so that best results can be
attained. For instance, installing such
features in helicopters that help in
minimizing the affect of health and
safety upon employees (Arena,
Arnaboldi and Azzone, 2010). It is
significant for businesses to maintain
such health and safety policies so
that employees can safeguard
themselves in order to overcome
issues. Further, there is also a chance
of accidents so that it is essential for
business to effectively identify the
goods and provide proper
documentation so that threat of
health and safety measures can be
avoided.
Health and safety risk of possess
low likelihood i.e. 3as business
possess required safety measures
to be undertaken so that better
workplace environment can be
provided to employees. While, it
has high impact i.e. 4 which states
that due to negligence of
management sometimes firm
faces issues in providing better
workplace environment for
employees and it affects their
health and occur accident within
business. Therefore, it is essential
for Airbus to develop effective
safety provisions so that
individual health can be
maintained. Here, it is crucial for
Airbus Group to establish
effective strategies so that
financial loss can be mitigated in
order to incur high expenditures.
Corporation is carrying out
effective products and services so
that losses can be overcome in
order to manage the risk within
enterprise. Hence, it is essential
for Airbus Group to develop
effective measures so that quality
products and services can be
delivered to individual buyers and
thus attain desired targets (Aebi,
Sabato and Schmid, 2012).
3 4 12 Yes
20

11
Reputation risk Risk of low quality goods because of
not having skilled employees
The success of any company totally
depends upon the workers; hence
Airbus is no such exception. The
type of work as being carried out by
the workers who works within firm
causes direct impact upon the
reputation of firm in market (Song
and Zhuang, 2016). For example,
Airbus produce aircraft for military
which gives more attention to the
quality of product. Here, high quality
of product will be produced by the
firm if it will have the team of
talented and skilled individual who
have thorough knowledge regarding
the ways of carrying out their work.
However, single mistake from the
side of workers which lead to cause
direct impact upon the image of
company (Bartak and Ghosh, et.al.,
2015). In this context, it has been
seen that for any firm it becomes
very difficult to regain their brand
image or reputation once it is
impacted through ineffective
practices from the side of workers.
Hence, it is very essential for the
corporation that it should make
measure with regard to improve the
skills of its workers so that in future
no question will be obtained against
the reputation of Airbus.
In order to save reputation of
firm, the HR department of
corporation plays very effective
role. Here, it makes measures in
terms of organising training and
development programs for its
employees. This is done with an
aim to improve the skills of its
respective workers. Thus, they are
being able to carry out their
efforts with regard to deliver the
high quality of products and
services to the buyers in an
effectual manner. Here, with an
aim to assess the skills in which
its employees are hindering it
takes help from the approach such
as training need analysis. (Refer
to Appendix)
In the likelihood of respective
risk, it is rated 3 because Airbus
takes all sort of measures with an
aim to carry out the recruitment of
highly skilled workers. The firm
follows rigours and strict
recruitment process in order to
ensure the placement of right
employee at right place. However,
in the impact criteria it is rated 4
because recruitment of skilled
employee will not being carried
out at that time quality of product
offered by corporation will be
impacted. The direct impact of the
same will be seen upon the
reputation of the company.
3 4 12 Yes
21

12 Ergonomi
cs risk
Risk of ineffective firms
manufacturing operation layout
Ergonomics is the process of
designing and arranging the
workplace in such a manner so that it
can fit the people who use them. For
the aircraft manufacturing firm like
Airbus is being regarded as one of
the most major risk. This is because
it is directly related with the life of
workers who works within firm. In
accordance with the given context,
there are different areas identified
where ergonomics risk may occur
(Li, Landriault and Lemieux, 2015).
The current practice which is
being adopted by the corporation
is being reviewed. For example,
with an aim to reduce the risk
which are associated with the strip
or crimp efforts has been made
the cited firm with regard to use
different pneumatic tools instead
of specified one. In addition to
this, the firm also make use height
adjustable workstations with an
aim to minimize the falls which
may happen when employees
carry out their work with the help
of stepladders Reputation. (The
Hardest Risk to Manager, 2013).
In addition to this, it can be said
that the manufacturing risk cannot
be accepted by the organization.
This is because; any kind of
manufacturing fault or risk may
influence the brand image in a
diverse manner.
(Refer to Appendix)
Herein, the likelihood to the
occurrence of respective risk is 4
because Airbus takes significant
measures with an aim to design
the layout for the manufacturing
operation its aircraft in an
effective manner. Herein, it takes
help from the professionals who
have specialization in preparing
product manufacturing firm
layout. But, if it is not designed in
an effective way at that time
overall cost with regard to each
manufactured product will be
increased. This thing will hamper
pricing tactic of firm. Thus, it the
reason why the respective risk is
4 4 16 No The score sixteen
indicates that the risk
is major and hence it
is required by the
Airbus that it should
make measure with an
aim to mitigate the
same. In accordance
with the given context,
it is suggested to the
corporation that it
should use mechanical
lifting devices. With
the help of this,
significant measure
with regard to those
work will be carried
out which may
threaten the life of any
person (Allen and
et.al., 2015).
22

rated 4 in impact category.
13 Economi
c/
operation
al
Risk of corrupt practices
It has been spotted that the
organization is facing issues
regarding corrupt practices which
also impacts economical and
operational aspects in diverse
manner. Management is not focusing
on continuous development of
monitoring system that increases the
risk of unethical working.
Airbus is continuously focusing
on development of anti-corruption
network so that goals can be
accomplished in appropriate
manner. Company is dealing with
government authorities so it is
necessary for organization to
ensure that they are not involved
in any kind of corrupt working.
(Refer to Appendix)
4 4 16 No However, it can be
assessed that Airbus
Group is required to
develop different
measures so that anti-
corruption activities
cannot be performed
within organization.
Company is investing
heavily in the projects
so management needs
to ensure about the
standards.
14 Health
and
safety
Loss of life
It is also one of key issue that the
organization is facing issue in regard
to loss of life. Any of avoidance
during the manufacturing of
helicopters and other crafts can
impact the health of employees.
Organization is currently focusing
on various developments in
standards so that security aspects
can be improved during
manufacturing. In other aspect, it
can be said that the various
technological tools are being used
to ensure about standards.
The likelihood for the occurrence
of given risk is 3. This is because;
Airbus provides all kinds of safety
equipment to its workers such as
helmet and gloves. Furthermore,
the firm also organizes monthly
safety training to the employees.
(Refer to Appendix)
3 4 12 Yes
23

15 Operation
al
Dispute among employees
It is one of significant issue that
impacts business of Airbus in
negative manner. Number of times
employees are not providing support
to each other which creates an issue
in context to operational aspects.
Miscommunication issue is also one
of key issue among employees that
creates an operational issue. There
were severe delays seen in launch of
Airbus 380 in the early 2000’s. It
has been identified that the business
firm has faced issue due to lack of
coordination among members. It also
influenced the overall working of
Airbus in diverse manner.
Organization is currently focusing
on number of activities that can
reduce miscommunication among
employees and overcome issues.
In the support of this, it can be
said that the employees are also
providing better support to each
other and overcome issues.
(Refer to Appendix)
The highly stressful condition of
workplace tends to create
conflicting situation between
employees. Thus, the dispute
between employees can occur at
any time and due to this, in the
likelihood criteria, it is rated as 4.
This is because; any kind of
dispute which occurs between
employees may lead to delay in
the product’s production. This will
affect the overall profits of
Airbus.
4 4 16 No In this respect, the
management can focus
on number of
activities which can
reduce
miscommunication
issues. In addition to
this, it can be stated
that the management
can interact with
employees to
understand their issues
and design activities
in order to overcome
problems.
24

Opportunities
S.
No.
Opportu
nity
Category
Description & Information
Sources
Action to enhance
strategic opportunity
T
h
r
e
a
t
s
Ways to
overcome
threats
and gain
competiti
ve edge
1 Data
protection
It is essential for Airbus
Group to develop effective
technique so that they can
protect the data of
purchasing raw material used
in manufacturing defence
equipment and also
safeguarding the purchasers
so that information cannot be
leaked to outside agencies.
Further, it is crucial for
enterprise to manage the risk
of leaking the data in order
to maintain a record of
demand and supply of
defence equipment so that
desired results can be
attained. Thus, company is
required to measure the
current balance of supply
and demand (Duckert, 2010).
Furthermore, business is
required to undertake
effective actions so that
they can enhance the
opportunity of protecting
the data by adopting
advanced software and
password system. Through
implementing both these
methods it helps in
protecting the data so that
desired results can be
attained (Pagach and Warr,
2010).
Append
ix 1
Appendix
1
2 Reputatio
n risk
Here, Airbus is required to
maintain its reputation
through providing best
training session to its human
However, adopting skills
audit is the best way to
enhance the opportunity
and thus maintain
25

resources in order to attain
organizational goals
(Reputation. The Hardest
Risk to Manager, 2013).
Also, it is significant for firm
to develop the skills and
capabilities of individuals
and thus enhance the firm
growth and development.
reputation of firm in
marketplace. Further, it is
crucial for Airbus to
develop effective
reputation system in order
to attain desired targets
(Arena, Arnaboldi and
Azzone, 2010).
26

RISK MAP
Risk Map
IMPACT
1 2 3 4 5
LIKELIHOOD
5 7 2
4 12, 13,15 1
3 9 3,4,10,11,14 5,6
2 8
1
27

LIST OF RISK TABLE
Risk sources Assessed risk Likelihood (1-5) Impact (1-5)
Security Breach of security 4 5
Environmental Co2 emission risk 5 4
Operational issue Risk of delay in production 3 4
Technological Risk of rapid changes in
technology 3 4
Operations in
context to IT Cybercrime related risk 3 5
Safety Risk of employee life 3 5
Financial Not having sufficient finance 5 3
Data protection Risk of leak of confidential
information of firm 2 5
Economic Risk of recession 3 2
Health and safety Risk of accident at workplace 3 4
Reputation risk
Risk of low quality goods
because of not having skilled
employees
3 4
Ergonomics risk Risk of ineffective layout 4 4
Economic/
operational Risk of corrupt practices 4 4
Health and safety Loss of life 3 4
Operational Dispute among employees 4 4
28

REFERENCES
Books and Journals
Aebi, V., Sabato, G. and Schmid, M., 2012. Risk management, corporate governance, and
bank performance in the financial crisis. Journal of Banking & Finance. 36(12). pp.
3213-3226.
Allen, M and et.al., 2015. Impact of Risk Management on Project Cost: An Industry
Comparison. Journal of Information Technology & Economic Development. 6(2).
Arena, M., 2010. The organizational dynamics of enterprise risk management. Accounting,
Organizations and Society. 35(7). pp.659-675.
Arena, M., Arnaboldi, M. and Azzone, G., 2010. The organizational dynamics of enterprise
risk management. Accounting, Organizations and Society. 35(7). pp. 659-675.
Aydin, G., 2010. Decentralized supply risk management. SSRN.
Bartak, R. and Ghosh, et.al., 2015. Application of risk-based assessment and management to
riverbank filtration sites in India. Journal of water and health. 13(1). pp. 174-189.
Chapman, R. J., 2011. Simple tools and techniques for enterprise risk management. John
Wiley & Sons.
Cheng, J. H. and Chen, M. C., 2016. Influence of institutional and moral orientations on
relational risk management in supply chains. Journal of Purchasing and Supply
Management.
Chitakornkijsil, P., 2010. Enterprise risk management. International Journal of
Organizational Innovation. 3(2) pp.309.
Damodaran, A., 2010. Risk management: a corporate governance manual. SSRN.
Driver, J., 2012. Enterprise risk management. In The SAGES manual of quality, outcomes and
patient safety. pp. 529-539.
Duckert, H. G., 2010. Practical Enterprise Risk Management: A Business Process Approach.
John Wiley & Sons
29

Escudero, L. F., Monge, J. F. and Morales, D. R., 2015. An sdp approach for multiperiod
mixed 0–1 linear programming models with stochastic dominance constraints for risk
management. Computers & Operations Research. 58. pp. 32-40.
Hampton, J. J., 2009. Fundamentals of enterprise risk management: How top companies
assess risk, manage exposure, and seize opportunity. AMACOM Div American Mgmt
Assn.
Hoyt, R.E., 2011. The value of enterprise risk management. Journal of risk and insurance.
78(4). pp.795-822.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.
Li, S., Landriault, D. and Lemieux, C., 2015. A risk model with varying premiums: Its risk
management implications. Insurance: Mathematics and Economics. 60. pp. 38-46.
Mandaraka, A., 2014. Modern maritime law and risk management. CRC Press.
McNeil, A. J., 2013. Enterprise Risk Management. Annals of Actuarial Science. 7(01). pp. 1-
2.
Moeller, R. R., 2011. COSO Enterprise Risk Management: Establishing Effective
Governance, Risk, and Compliance (GRC) Processes. John Wiley & Sons.
Monahan, G., 2008. Enterprise Risk Management. Hoboken.
Olson, D.L., 2008. Enterprise risk management. World Scientific.
Pagach, D. P. and Warr, R. S., 2010. The effects of enterprise risk management on firm
performance. Sage.
Scorecard, B., 2010 Enterprise Risk Management. Strategic Finance. 87(9). pp. 20-35.
Song, C. and Zhuang, J., 2016. Regulating food risk management—a government–
manufacturer game facing endogenous consumer demand. International Transactions
in Operational Research.
Strang, K. D., 2015. Risk Management Research Design Ideologies, Strategies, Methods, and
Techniques. Research Methods: Concepts, Methodologies, Tools, and Applications:
Concepts. Methodologies, Tools, and Applications. pp. 362.
30

Sweeting, P., 2011. Financial Enterprise Risk Management. Cambridge University Press.
Tamasi, G., 2011. Risk assessment techniques for civil aviation security. Reliability
Engineering & System Safety. 96(8). pp.892-899.
Wu, D., 2010. Enterprise risk management: coping with model risk in a large bank. Journal of
the Operational Research Society. 61(2). pp.179-190.
Online
Reputation. The Hardest Risk to Manager, 2013. [Online]. Available through:
<http://www.acegroup.com/global-assets/documents/Europe-Corporate/Thought-
Leadership/ace_reputation_at_risk_july_2013.pdf>. [Accessed on 8th March 2016].
Ergonomics in the Workplace, 2011. [Online]. Available through: <http://www.impact.ie/wp-
content/uploads/2015/07/HSA-Ergonomics-2006.pdf>. [Accessed on 8th March 2016].
31

APPENDIX
Risk
Category
Risk Description Current Mitigation
Action
Mitigation Response
Security Breach of security Moreover, the regulations can be
developed as per consideration of
government policies such as BPSS
(baseline personneel security standard).
Assistance of military sector is
beneficial to reduce the security risk.
Environmen
tal
Co2 emission risk Moreover, company can also focus on
various fuel enhancer technology so that
natural resources consumption can be
reduced in order to protect
environmental aspects (Hampton, 2009).
Various rules and regulations must be
followed by Airbus Group to continuous
improvement (Aydin, 2010). Nox
reduction engines can be used to
overcome issue.
Operational
Issue
Company manufactures
aircraft's and helicopters
for military sector and
government authorities; it
is means the production
must be accomplished in
desired time period
(Driver, 2012). Supply
chain risk is also
significant factor for the
Airbus Group. Improper
supply chain management
may create extra logistics
cost that can influence
New technological
changes help in
operational activities
accomplishment. Such
as ATM 2020 is one of
key technological
update (Arena, 2010).
Company’s production
system is well
maintained so, there is
less possibility of
operational issues to
occur.
32

business in negative
manner (Wu, 2010).
Operational
issue
Dispute among employee's Moreover, dispute
among employees
cannot be accepted by
the management
because the conflict
between members
impacts the
effectiveness of work.
Issues also influence
the morale of
workforce and create
operational conflict
situations.
Training must be provided to balance
personal and professional aspects in
appropriate manner. It will also facilitate
in resolving situations where employees
are having disputes between each other.
Health and
safety
Loss of Life Hence, it is the reason
likelihood to the
occurrence of
respective risk is very
less. But, if firm will
not look-after the
given risk then at that
time, the image of
company in market
will be affected in a
negative way. Hence,
it is due to the
presence of given
aspect, it is rated as 4.
It is also recommended to the cited firm
manager that it should constantly review
standards within organization to make
sure that employees are safe from loss of
life issue.
Economic/
operational
Risk of corrupt practices The risk of corrupt
practice is also not
acceptable because
any kind of corrupt
working may lead
33

business to various
legal issues. It can also
impact the working of
government that may
affect the relation
between both parties.
It is due to the
presence of given
aspect the given risk is
rated 4 in both
likelihood and risk
impact category.
Ergonomics Risk of ineffective firms
manufacturing operation
layout
The areas are wire shops
and the use of stepladders
with an aim to perform
different type of works
upon aircraft. In addition
to this, riveters are being
regarded as another major
challenge for the Airbus. It
is due to the fact that it
represents both forceful
exertion risk and
vibration. Hence, these all
activities which are used
for the purpose to
manufacture the aircraft
may threaten the life of
Airbus workers. But, the
given risks mainly occur
when manager of firm has
Company
manufactures aircrafts
thus; the
manufacturing default
may cause flying
effectiveness.
In addition to this, it is also
recommended to the cited firm manager
that it should constantly review its
workstation arrangement and department
placement. Through this way also,
different risk which may occur within
work place can be reduced in an
effective manner.
34

not arranged its product
production layout in an
effectual manner (Cheng
and Chen, 2016). Hence, it
is correct to say that it is
very essential for the
Airbus that it should
consider the given risk
very seriously. This is
because, if it is not done
then whole production
operation of enterprise
will be get impacted and
due to this firm may incur
huge losses (Escudero,
Monge and Morales,
2015).
Operations
in context to
IT
Cyber Crime
It is also not
acceptable because
company operates its
business with defence
agencies and
government
authorities. Any kind
of cyber crime may
leak the information
about nation’s security
which may influence
the trust factor.
Airbus Group can also focus on
activities that can speed up techniques of
eliminating technological issues.
Guarding systems can also be referred in
most suitable manner in order to
overcome issues and avoid risk (Wilke,
2014). Other than this, various measures
can also be taken to ensure that the
networks are separated so hackers
cannot have reach to confidential
information.
Reputation
risk
Risk of low quality goods
because of not having
skilled employees
By using the given
method, firm improve
the knowledge
regarding different
Through this way, relaxing and
motivating environment of working can
be provided to the employees of firm.
Thereby, they can make efforts with
35

skill which it wants to
improve among its
workers. Thus,
through this way only
Airbus develops the
team of skilled and
talented individual
who can provide high
quality of product and
services to its
respective client.
Thereby, assist in
maintaining the
reputation of
corporation in market
in an effectual way.
regard to give some fruitful suggestion
to the corporation which leads to it in
the form of increased profits and sales in
an effective way (Strang, 2015).
36

Risk rating
Following table depict the likelihood and impact of different scales which are
used with an aim to rating to the different type of risks.
Ratings Annual frequency
Descriptor Definition
Probability
Descriptor Definition
5 Frequent Once in one year Almost
certain
90% greater
probability of
occurring over the
life of company
4 Likely Once in 4 years up
to once in 9 years
Likely 60% up to 80%
probablity of
occurring over the
life of company.
3 Possible Once in 20 years
up to once in 30
years
Possiblity of
occurance
40% to 60% chance
of occurrence over
the firm life
2 Unlikely Once in 30 years
up to 40 years
Unlikely to
be occur
20% up to 40%
probablity of
occurring the given
risk over the
company life
1 Rare Once in 40 years
or less
Rarely occur Less than 20 %
probabality of
occurrence over life
of company
Risk impact
Following table tend to depict the impact of varied type of risks:
Rating Descriptor Definition
5 Extreme - Loss of finanace
- Many senior members of firm may leave.
- Injury may caused to workers.
- Company's reputation will hamper
- Decline in the sales as well as market share
37

- Can be covered by international media. Hence, brand
image of firm will be impacted.
4 Major - Loss of finance
- Loss of company's reputation
- Firm may lose its market share
- Loss of sernior members and high amount of
dissatisfaction amoung the workers.
- Injury may cause to employees.
- Need to be reported to regulators.
3 Moderate - Finanacial loss
- High amunt of employee dissatisfaction and increase in
the number of employees turnover.
- Incident may catch the eyes of national media
- Impact on company's brand image
2 Minor - Loss of finance
- Can caught eyes of local media
- Need to report to the regulators.
- Impact of staff morale or motivation
- Significant increase in the employee turnover ratio.
- Reputaion of company may damage
1 Incidental - Loss of finanace
- No impact upon the safety of third party and firm's
employees.
- No need to make a report of the same to the regulators.
- Attention from the local media can be resolved quickly.
Risk assessment process
38

Conceptual framework for risk assessment
39

Threats Ways to overcome threats and gain competitive edge
Main threat of Data protection to firm is
that it influences the privacy and
confidentiality of business. It is a risk
which is faced by the firm regarding
leaking the data to outside agencies that
result in maintaining proper records and
supply of defence equipment’s.
However, it is essential for Airbus Group to protect the data of firm
so that they can overcome the threat in order to mitigate them and
gain competitive edge over rivals. Hence, it is crucial for business to
overcome the threats and gain competitive edge over competitors. It
can be assessed that Airbus is gaining competitive edge from its
rivals i.e. Boieng and thus improving the financial performance of
Airbus.
40

Furthermore, business also faces
reputational risk if its employees are not
given with effective training sessions. It
affects the reputation of firm and thus,
individual is required to improve their
performance to attain the growth
objectives.
Airbus Group is required to manage the reputational risk of firm so
that they can enhance the individual's skills and thus, can build
opportunities for them to attain the desired targets. Also, it can be
assessed that Airbus has showns positive results in terms of
increasing its revenue by 15.5%. Because of such strong
performance during the second quarter it helps Airbus to give tough
competition to its rivals such as Boeing Company and enhance its
production. Airbus also sets its new factory site in order to build
largest single aisle aircraft that involves the production of A320
jetliner family. However, the new factory is likely to give tough
competition to rivals i.e. Boieng. Hence, Airbus controls 20% of the
US market that is currently the largest aviation market in world.
41