Enterprise Risk Management: A Comprehensive Analysis

ENTERPRISE RISK
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Aims of organisation100..............................................................................................................3
Risk Thresholds...........................................................................................................................4
Risk Register Template................................................................................................................5
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Enterprise risk management can be understood as one of the most crucial business objective
while formulating business management structure in a company where the leaders and managers
have role to analyze the various external and internal factors on which risks can be mitigated.
Risk management evolves overall efficiency and profitability within structure for reaching the
high end targets withy smooth functioning, strategic planning and researching best ways to
potentially develop whole working performance standards. With the dynamic business world
companies are facing high competition among each other with huge risks and contingencies
arising from external factors. This report analyzes various facts explaining risk management
principles, important steps which companies take to plan with strategic planning and optimum
resource allocation. Aldi is one of the oldest retail companies in industry of UK offering large
products and services to customers among all stores, but with changing business world brand is
facing risks which can be mitigated with proper constructed structure and high potential planning
structure. Report explains risk threshold calculations by company top management , the various
external opportunities which can be taken for long term success and stability in business
functions.
MAIN BODY
Aims of organisation100
Aldi is one of the oldest supermarket chain company originated from UK spread with
around 10,000 stores in 20 countries and has an estimated combined turnover of more than 50
billion worldwide. Aim of organization is to serve customers with high quality fresh grocery
products, strong customer’s satisfaction services and providing customers with innovative
portfolio of products. Aldi company aim has been recognised as highly goodwill attained
company with high quality focused management strategies and enhanced functional efficiency
based on retail company business goals. Aim of company can be understood to bring strong
profitability with high focus towards bringing diversity within all functions where it trains and
research optimum within management structure (McNeil and Gordy, 2020).
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Risk Thresholds
The term risk thresholds can be mainly described as the strategic to that helps in
ascertaining the likelihood and impact that a potential risk might have on the working of an
organization. It helps in calculation of that particular score which can be used in order to set a
acceptable limit for the organizations i.e. this is the limit of risk that the stakeholders or
management of an organization are willing to accept. If the score goes beyond this then the
company might face some serious consequences from the risks hence arising (Kopia and et.al.,
2017). Therefore it is a critical tool in the planning and management of the organizations and
projects. The probability risk matrix is the matrix strategy for the calculation of the risk using the
two major factors i.e. likelihood and impact. The likelihood can be termed as the chances or
probability that a risk might occur and the impact aspect helps in ascertaining the effect that such
risk occurrence will have on the organization (Abdymomunovn and Mihov, 2019). This matrix
uses likelihood factor on the x axis and the impact factor on the y axis where the five different
measures i.e. very high, high, medium, low and very low are used to measure the risk.
Figure 1: Risk Matrix
Source: Probability-Impact matrix, 2018
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