Corporate Risk Management

Corporate Risk Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Identification and assessment of risks.........................................................................................3
Risk response...............................................................................................................................6
Risk communication....................................................................................................................8
CONCLUSION..............................................................................................................................11

INTRODUCTION
Corporate Risk management deals with all the methods which are used by the companies for
minimizing the financial losses. The practices of corporate risks management are performed by
risk managers, line managers, employees, executives, middle managers and many more people
involved in the company for preventing loss exposure via the internal control of technologies and
people (Chen and et.al., 2018). The report will describe the risk management in the various
companies like Channel 4, Marks and Spencer and Altria. All the aspects of risk will be
identified, communicated and elaborated.
Channel Four is a media company which is owned by Public and has its headquarters in
London, UK. The principal and original activity of the company is British national television
network Channel 4. It is also the owner of The Box Plus Network which is basically a music-
oriented company having a network of six music television channels (Channel four television
corporations, 2021).
Marks and Spencers, which is also known as M&S is a multinational retailer
headquartered in London, UK deals in various products like home and food products, clothing
etc. having its own label. The area served by the company is worldwide which means the
company performs its operations in the various countries across the world (M&S London, 2021).
Altria Group Inc. is one of the largest producers and marketers of cigarettes, tobacco
and the products related to the same. It is headquartered in Henrico Country, Virginia. The
company was previously known as Philip Morris Companies Inc. and now is the parent of the
same. It also carries out its operations worldwide in many countries (Altria Group Inc., 2021).
The report will assess and compare the risk management in the above mentioned companies by
evaluating the main types of risks they face, their strategies to mitigate them, communication and
response. It will also mention the ways in which mentioned risks can evolve in future along with
few implications.
Identification and assessment of risks
All the companies face different types of risks according to the operations performed by
them. Channel Four company is known for taking risks which makes it develop ideas, thriving,
dynamic business and talent which helps the UK in becoming the most creative and influential
forces in the audio visual media sector which is fast globalising. In order to remain competitive
3

in the emerging TV industry, the company faces all the risks and strives hard to mitigate the
same. The main risks which such companies face are the lack of new ideas and opinions which
lags it behind its competitors and the new entrants. The company has overcome this risk since it
was founded. This is why the company is considered as the unique institution among all the TV
broadcasters in the world. The company tries out new ideas every year as compared to any other
company along with sticking with these ideas which show promise (Livingstone and et.al.,
2017). Not only this, the company is extended the way in which it takes this risk by integrating
the advanced technologies which enhanced the ways in which views engage in its programmes
such as The Million Pound Drop.
Furthermore, the business model of this industry always changes which creates a need for the
company to adapt the new business model which requires large investment (Channel 4’s unique
purpose, 2021). Channel 4 strives hard to convert the public intervention into economic benefits
which helps in adapting to the changing, competitive and the global business model. Also,
another risk is faced by the company is when the content of the programming becomes outdated.
In order to mitigate this risk, Channel 4 builds string relationships with the innovative content
creators helps in remaining updated with the new content every time (Zhang and et.al., 2017).
This is how, the companies like Channel 4 in the TV industry of UK face risks and overcome
them.
Marks and Spencer, an iconic retailer in the supermarket retail industry of UK also faces many
risks. One of the major risks which is faced by the company is the worsening economic
conditions which affects the confidence of the customers towards the company and the ability of
the company to achieve its developed plan. The risk is that M&S believes that the disposable
incomes of the consumers are depended on the government austerity measures and the price
inflation but forgets to consider the trading conditions which can be the challenge for the
business. The company is constantly monitoring and reviewing its pricing and promotional
strategies in the food as well as general merchandise which can help to tailor the customer
offerings and satisfies the customers by taking feedbacks (Marriott and Williams, 2018). Another
risk is the flawed execution of the new selling channels. This was observed that the company did
not accept the credit cards till 2001 but as the company is now operating worldwide, the main
challenge is to increase the presence on all the online channels and facilitate the customers by
4