Enterprise Risk Management (ERM) in Telstra Company
Added on 2020-05-28
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RISK ASSESSMENT 1Risk Assessment and ManagementBy NameCourseInstructorInstitutionLocationDate
RISK ASSESSMENT 2Risk Assessment and ManagementRisk assessment Telstra Company should ensure they have an established Enterprise Risk Management (ERM) which will be helpful in maintaining proper management. ERM will also assist the company in pointing out key risks in their day to day activities and how to manage them while different roles and responsibilities are allocated. The ERM structure is normally used to show thedetails of the necessary requirements that facilitate risk management (Robert 2011).Telstra Company has key Micro factors that influence and impact Telstra performance such as Financial, operational, technological, and ethical, project and also safety or health risks. These factors are important as they set the pace of how the company is coping with risks and the risk management process to be adapted to ensure the company is growing. Industrial disruption and competition riskFinancial risk management is necessary to Telstra so as to avoid the events that erode its profitability that can result in extremities like the collapse of the business. Financial risk in Telstra can also result in poor investment decisions in regards to company machinery and buildings. It can also lead to failed financial systems, loss of customers, loss of investors and poor hedging decisions. The company may suffer losses if financial risk is prolonged and not managed (Phillip 2014).In operational risk management, Telstra Company cannot run without operational risks put in place and if the risks are not managed the company may incur losses as a result of inadequate or failed internal processes such as systems, people, and external factors. Operation risk management results in a business end product and the processes and resources channeled into developing the products. Operation risk if not well addressed and managed, may
RISK ASSESSMENT 3result to the company risk in terms of loss of customers, market and failed systems which can adversely affect the business and the economic and political environment. Failed operation risk management in Telstra can also lead to crime risk such as theft, fraud and system hacking. Some of disaster risks in the company like floods and other natural disasters as well as terrorist activities can be experienced. Data governance riskThe company should have an established technology management risks to ensure there are no risks such as computer hacking, sensitive information disclosure, and data corruption. Other risks related to the operational risk failure are such as legal risks, the reputation of the company gaining public negativity, outsourcing and a general breakdown of company processes and procedures. Technology is useful to Telstra Company as it increases productivity and growth and reduces costs (Faulkner 2012). While introduction and change in technology is a golden opportunity for company growth, it also poses risks and threats to market share and development. Technology risk can be in form of events that may lead to mismanagement of investments in technology in terms of product design, information management, and manufacturing processes. Other technology risks are lack of investment in technology by the company leading to inability to compete with other technology forward companies. Telstra should have a well governed technology system to ensure there is security and confidentiality of information. Business resilience and reputation riskProject risk management is critical to Telstra Company as it defines the start and finish ofset projects and company objectives. Failure to manage project risks can result in loss of
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