Risk Management Report for Corwin Corporation

This report analyzes the risks incurred by Corwin Corporation after signing a deal with Peters Company. It discusses the background, risk identification, risk assessment, risk register, risk probability and impact matrix, risk management, and references.

CORWIN CORPORATION Surname 1
Risk management report
Student’s name
Professor’s name
Institutional affiliation

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Table of content
1. Executive summary
2. Introduction
 Background information
3. Risk identification
4. Table of risk register
5. Table of risk probability and impact matrix
6. Risk management
7. References

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Corwin corporation Risk management report
1) Executive summary
This particular report seeks to analyze the extent of risks Corwin Corporation incurred after
agreeing to sign a deal with Peters Company. Being an internationally recognized company, with full
capacity of producing high quality rubber components with minimum cost, Corwin Corporation
accepted a specialty - product assignment from Peters Company (Bennett, 2010). Knowing the kind
of company, they were dealing with, Corwin’s marketing VP threw caution to the wind and entered
into a blind agreement with Peters Company after being offered an enticing 5 years deal.
2) Introduction and background
Over the history Peters Company has proved to be one of the hardest companies to work with.
The kind of working environment they offer to any client they work with is not desirable at all. The
six months working duration was filled with chaos. Not only did the deal bring huge losses to the
corporation, good working environment between the two companies was also ruined (Bennett, 2010).
Lack of professional personnel’s, poor communication strategies, negligence and ineffective planning
led to the challenges.
3) Risk identification and assessment
. In this particular case study, there are certain risks that can be highlighted. First and
foremost, working with Peters Company was the greatest risk. The company has a bad reputation of
piling intense pressures their partners. With this knowledge, Corwin Corporation took a step to work
with them (Dumbravă,2013). Secondly, accepting a project which they were not in a position to
deliver quality results was also a risk. However, because of greed they took an assignment knowing
they did not have skilled manpower and adequate resources to undertake the task.
It’s often said that when the deal is too good think twice. Frimel accepted a deal with only
rough specification. Ideally, before one accepts any task, they have to get whole details even the
minute information (Dumbravă,2013). However, this was contrary to the expectations. A deal was
agreed and sealed over a mare telephone call without in-depth details. This was pure risk. In relation
to this, a fixed amount of money was agreed upon without calculating knowing the exact cost of
cooperation. They were given a fixed amount of $ 250,000. By the end of the whole assignment,
Corwin had incurred a huge lose surpassing the budget amount.

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The risks the company decided to make had great impact. performing an assignment in an
area they never had an expertise wasted a lot of time and resources. Occasionally conflict of interest
was witnessed between Dan and ray (Raspotnig,2013) . This conflict jeopardized the whole exercise
and ruined the good relationship between the two companies.
On the same note, acceptance of the task without appropriate manpower had an impact on the
company. This directly affected the normal operations because the available staff concentrated on the
single work affecting the other critical sections in the company. Lack of organization and cooperation
had an impact on the total cost and allocations proposed. Most of the time, the lab tests and results
were rejected by Pat. Therefore, the same tests had to be repeated without considering the cost that
had been incurred initially. While the tests were being repeated, the amount proposed never added. It
was ever constant. This forced the Corwin Corporation to work above the planned amount.
It beats logic to enter agree and seal a deal over a telephone call. This indicates high level of
unprofessionalism an incompetency (Carvalho,2015). This decision by Frimel had huge impact. The
impact was felt when the company terminated the contract without the due date. Similarly, the act of
ignoring the exact details of the assignment affected them in the end. By lacking appropriate
information, they failed to understand what was expected of them.
4) Risk register
Risk description Likelihood Risk owner Risk rating Risk control
Entering into a
deal with Peters
Company
possible Corwin
Corporation
High Avoid entering
and signing deals
with the company
Poor
communication
and cooperation
likely Project manager Medium Establish
appropriate
means and
channels of
communication
Working above the
proposed budget
possible Finance manager medium Acquiring exact
quantity of work
to be performed
Risk of withdrawal
before project
completion
possible Corwin
Corporation
High To sign an
elaborate
agreement

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Not being in a
capacity to deliver
quality work
Very possible Project manager Very high Choose
competent
workers
Performing an
assignment without
clear specifications
Very possible Project manager Very high Understand the
terms and
conditions of any
work
5) matrix Risk probability and impact
PROBABILIT
Y
IMPACT
minor moderate major extreme
possible low low medium medium
likely low medium high Very high
Very
possible
medium medium high Very high
6) Risk management and reporting
Following the crisis that resulted after a failed system of operation a response strategy is
necessary. This strategy will aid in restoring the good and conducive working environment. The
appropriate communication protocol has to be established. This should involve the top most
management. And termination of a huge project should follow legal procedure rather than abrupt
personal decision. Secondly, to manage such a huge crisis it’s important to monitor entire procedures
so that loopholes and can be identified in early stages. Communication should be paramount in any
organization. In such a scenario, poor communications lead to failure of the entire process. Constant
updates and communications facilitate smooth operations (Carvalho,2015).
The key stakeholders in both companies have to get full details of the events that took place in
their absence. They have to receive full details of the situations. Therefore, for them to be apprised,
key individuals from respective companies’ i.e. ambassadors have to deliver first-hand information of
the entire scenario. These have to be proactive individuals form the involved companies.
Information should reach the stakeholders from the organization’s employees rather than other
sources such as the media. And this has to be in the right media such as writing of memos,

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newsletters or board room meetings. Basically, the channel in which the message should be relayed
should satisfy and meet the expected criteria (Carvalho,2015).
7) References
Bennett, P Calman, K., Curtis, S., & Fischbacher-Smith, D. (Eds.). (2010). Risk communication and
public health. Oxford University Press.
Carvalho, M. M. D., & Rabechini Junior, R. (2015). Impact of risk management on project
performance: the importance of soft skills. International Journal of Production Research,
53(2), 321-340.
Dumbravă, V., & Iacob, V. S. (2013). Using probability–impact matrix in analysis and risk
assessment projects. Descrierea CIP/Description of CIP–Biblioteca Națională a României
Conferința Internațională Educație și Creativitate pentru o Societate Bazată pe Cunoaștere–
ŞTIINŢE ECONOMICE, 42.
Devanathan, S., Ramanujan, D., Bernstein, W. Z., Zhao, F., & Ramani, K. (2010). Integration of
sustainability into early design through the function impact matrix. Journal of Mechanical
Design, 132(8), 081004.
Kou, G., Peng, Y., & Wang, G. (2014). Evaluation of clustering algorithms for financial risk analysis
using MCDM methods. Information Sciences, 275, 1-12.
Raspotnig, C., & Opdahl, A. (2013). Comparing risk identification techniques for safety and security
requirements. Journal of Systems and Software, 86(4), 1124-1151.