Corporate Risk Management

Report Corporate
Risk Management
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Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
Identification and assessment of risk......................................................................................3
Risk Response........................................................................................................................5
Explain about each company's communication risk towards the stakeholders........7
CONCLUSION .............................................................................................................................10
Describe about the themes involved and also explain about how risk management get evolve
in the future...........................................................................................................................10
Tell about the implication will be learnt for regulators........................................................11
REFERECNES .............................................................................................................................12
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INTRODUCTION
Corporate risk management can be defined as it covers all the methods used for
minimizing the financial losses by the company. Risk management also relates to threat to the
corporation. It can be in the form of fluctuation in the financial market that affects the financial
assets. In this report, analysis has been done on the risk management of the Channel 4, Marks &
Spencer and Altria companies. The report includes the types of corporate risk, their strategy and
risk management. It also includes how risk management has been evolved in the future, themes
and observations across the three companies.
Channel 4 is a free to air British television network and also it is a public service. Its headquarter
is in London and creative hubs in Glasgow and Bristol. The channel was established for the
purpose of providing fourth television service to the United Kingdom. Marks & Spencer is a
major British multinational retailer company. (Astakhova, L. V., 2020). It was founded in 1884
by Michael Marks and Thomas Spencer in Leeds. Its headquarter is in London, England. It
specialises in selling clothes, home and food products. It is listed on the London stock Exchange.
It has 703 stores in the United Kingdom and 361 stores spread across in more than 40 countries.
Altria is an American corporation and one of the largest producer of tobacco, cigar ates and other
products. It is the parent company of Philip Morris USA, John Middleton. It also maintains large
minority stakes in Belgium-based brewer ABInBev. Their vision is that to lead the transition of
adult smokers in a responsible manner to a non-combustible future. The future about this
industry is about innovation, minimum harm and informed consumer choice.
TASK 1
Identification and assessment of risk
The risks faced by Channel 4 was a very big task for the company. It has to continually develop
its VOD platform and apps to fulfil its customers demand. As the viewers are continuously
increasing, the company's systems and technologies need to scale efficiently. The company has
to face biggest challenge that was time. The company has doubt in themselves that they can
migrate their system including its database. They have a question that onto AWS is able to
generate enough savings and efficiencies that the
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client needed as part of their challenging programme of work? The company also have question
in their mind whether they can achieve all these things within the prescribed budget and
demonstrate improvements to the end user experience?
Marks & Spencer has to face challenges regarding the trading conditions for the business.
Because consumers disposable incomes comes under pressure from price inflation and
government austerity measures.(Bartram, S. M., 2019). The company has faced issues around
having systems, policies and about the supply chain management- the stores are thousands of
miles away but the goods have to still reach the shelves. The company has lost engagement with
their customers due to some reasons as the company focused on fashion industry and it changes
with every time period and that's why they have lost their path in targeting their customers. Their
main problem is that they don't connect with their customers and not ready to listen their
customers. Also not really engaged with any demographic. That's why they don't know exactly
what their customers want.
Altria has faced many triggers under which their first trigger is about the company's revenues.
Due to COVID-19 situation, the sale of tobacco has dropped down to 20 to 40 percent due to
which the company can't earn that much revenue as compared to their previous situation. The
second trigger is about the net margin. When losses incurred in 2019, Altria has to bounce back
to 35 % which is somewhere gives support to the COVID-19 situation. The assessment regarding
the risks faced by these companies has given lots of information and interpretation also.
Risk management framework is the structured process through which it can be identified that
how much threat is there for the company and what kind of strategy needs to be framed for
eliminating or minimising the impact of these risks. For managing the risk of channel 4
company, redevelopment strategy has been adopted which involves another database technology
was being considered. They have proposed to migrate from the 11g oracle to amazon RDS for
oracle. This approach support in minimizing the risk of migration. For reducing the risk for
Marks & Spencer it is important for the company to focus on their global expansion, e-commerce
retail and market segmentation.
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