Enterprise Risk Management: Aims, Risk Thresholds, and Risk Register

Enterprise Risk
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Aims of organisation....................................................................................................................1
Risk Thresholds...........................................................................................................................2
Risk register.................................................................................................................................3
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Enterprise risk management is mentioned to process connected with planning, organising,
leading along with controlling activities of entity for minimising risk effects within business's
capital addition to earning. It basically involves financial, operational, strategic and many more
types of risks that are connected to accidental losses (Banerjee, 2016). There are various methods
along with procedures that are opted by managers so that they can effectively manage risks
together with seize opportunities that are concerned with objective achievement. To establish
effective enterprise risk management framework, organisations works in setting common
language around all risks, a committee is steer to manage risk, roles and responsibilities are
assigned, ERM methodology is develop, framing risk appetite statement, identification of risks,
risk prioritization, risk mitigation plans, risk monitoring as well as reporting activities are
performed in systematic manner. It is generally risk based approach which helps in managing
organisation, protecting data and planning strategies. It in also an innovation within which
practices are geared to managing flourishing requirements of huge stakeholders as well as
ensuring proper management. The report is based on GlaxoSmithKline that is multinational
pharmaceutical company whose headquarters are established at Brentford, London. The report
includes information about aims of entity, risk thresh holds and risk register.
MAIN BODY
Aims of organisation
GlaxoSmithKline is a leading pharmaceutical entity that operates its functions in different
locatiosn of world. It has headquarters located in the city of Brentford, London. The goal of
GlaxoSmithKline is to become world's most innovative, trusted and best perfroming healthcare
business. The entity has three businesses thata are based on reserach, development addition to
manufacturing innovative pharmaceuticals vaccines, medicines as well as consumer healthcare
commodities. The values of the organisation are based on patient focus, integrity, transparency
along with respect (Berry‐Stölzle and Xu, 2018). At same time, the expectatiosn are based on
courage, development, teamworlk along with accountability. The busienss aims to bring
differentiated, needed together with high quality healthcare commodities to as many individuals
as possible through the global businesses, scientific along with technical know-how as well as
talented people. The company also aim to work by proper planning, arranging, leading as well as

controlling its functions for minimising risk effects on its capital and revenues. Due to
complexitities in external environment, the entity faces various types of risks that impacts its
workings to achieve its key aims and objectives. A risk is an uncertain event which inflences
objective achievemnt of the entity in positive and negative manner. All entities sets their
objectives after considering tyhe probabilities of occurence of risk and considered current
enterprise risk. Hence, there is huge linkage among aim of company and enterprise risks.
Risk Thresholds
It is an essential project management tool through which an entity measures uncertain
degree as well as level of impact that a stakeholder as well as entity may have interest. It sets
certain valuables that states that the company will accept the risk at that level or not. In other
words, risk threshhold is defined to risk amount whcih a company and its memebesr are willing
to welcome or accept (Cook, 2017).
Likehood is termed to possibility of risk potential occuring that is measured in qualitative
values like low, medium addition to high. These three label assessment are refered to ordinal
assessment as they on risk managemenetrders potential despite of providing undertstanding
differences among teh values. In other words, likelihood is characterised to qualitative
assessment which is subjective with low objective measurement. Similarly, impact scales are
defined to another tool that helps in scaling the impacts that are due to the risks. It is generally
used to analyse the risk impacts on the operations of business (Deck, 2015). The managers of
GlaxoSmithKline uses likehilood along with impact scales for calculating risk scores.
At an enterprise various types of risks are associated with them. Risks are said to the
events which arises due to uncertainties and have effects on objectives and aims of the company.
As eacha nd every project of company is unique so associated risks ususally varies among the
projects. Risk threshhold is one of essentail component whcih manages increasing likehilood for
project success. The GlaxoSmithKline uses probablility along with impact matrix so to identify
unacceptable risk scores. As selected organistaion works in pharmaceutical sector and
manufactures medicines and many more commodities, huge types of risks are associated with it.
Some of them are health related risks, physical chemical risks, risk of organic synthesis,
competition risk, supply chain risk, technology risk and legal liability risk.
The main objective behind using risk threshhold at GlaxoSmithKline are to measure
extent of which uncertainity or risk are accepted (Fiksel, 2015). For this, the organisational