Corporate Risk Management

CORPORATE RISK
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Identification and assessment of risk faced by company............................................................3
Risk framework and models........................................................................................................5
Risk Response to risk exposure in organisation..........................................................................7
Practices used to manage risk in organisation.............................................................................8
Risk Communication to key stakeholder....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
This report revolves around corporate risk management and how corporate risk are
managed by different organisation by taking different measures and identifying risk which can
affect organisation productivity and profitability. It is explained as methods which are used by
organisation to minimize losses and also focuses managing risk associated with fluctuations in
market. This report focuses on three different organisation which are Channel 4, Marks and
Spencer and Altria these three organisation are considered in this report and their strategies and
response to any risk is discussed. Channel 4 is UK based public service broadcaster and it is
publicly owned and commercially funded which focuses on delivering high quality and
innovative content to their users. Channel 4 exposure to risk can be understood in such a way
that it is focusing on developing VOD platforms and develop applications which can satisfy
consumer demand (Banerjee and Gupta, 2017). Channel 4 focuses on minimizing risk by taking
appropriate steps which includes developing effective strategies for organisation. Marks and
Spencer is British Multinational retailer with its headquarters in London, England and this
organisation focuses on selling clothes, home products and food products and all these products
are under their own label. Risk factor for Marks and Spencer is fierce competition in market by
other organisation such as Zara, Versace etc.
Altria Group is an American Corporation and considered as one of world largest
producers and marketers of tobacco, cigarettes and products related to tobacco. Altria group
operates all across the globe and its headquarters are in Henrico County, Virginia. Risk factor for
Altria group is the awareness among people about products. Organisation focuses on
communicating risk to their stakeholders and understanding what changes can be made into their
product which can help organisation to maintain their growth and development. Determining risk
can help organisation in taking effective steps to neutralize effects of risk.
MAIN BODY
Identification and assessment of risk faced by company
Risk identification and assessment of risk faced by organisation depends on nature of risk
and identification and assessment of risk also help in taking suitable measures to reduce effects
of risk on organisation. This part of report focuses on dealing with risk involved in environment

for Channel 4, Marks and Spencer and Altria group (Benedetti, 2018). This part of report also
focuses on risk faced by organisation and how organisation take different steps and measure to
resolve issues associated with risk. Risk which are associated with Channel 4 are mentioned
below:
Channel 4
 Channel sometimes faces risk of showing content which can affect sentiments and
feelings of people and channel 4 have to make sure that their content doesn't affect user
sentiments and feelings and their content shouldn't be biased towards any gender.
 Another risk which is involved in operational efficiency in organisation as Channel 4
have to make sure that their content should be effective that it engage users with channel
and it doesn't affect profitability of channel (Bianco and Gamba, 2019). Channel 4 profitability and productivity depends on viewership of channel and
viewership of channel also help in maintaining image of channel among its competitors
which help Channel 4 in achieving competitor advantage over competitors.
Marks and Spencer
 Major risk faced by Marks and Spencer is lack of consumer engagement with
organisation as it affects productivity and profitability of organisation and also affects
goodwill of organisation in market. Lack of consumer engagement also affects growth
and development of organisation in long-term. Large consumer base of organisation help
in creating goodwill of organisation and also engage new consumers with organisation.
 Another risk faced by Marks and Spencer is selling of products through different
channels because sometimes it can result in failure for organisation and it can affect
quality of products and also budget of organisation in selling through new channel. These
days online shopping is very effective but Marks and Spencer have to make sure that
there are proper resources to sell their products through online mode (Eckert, 2017). Another risk faced by Marks and Spencer is increase in competition that affects
organisation effectiveness and efficiency in market. Marks and Spencer focuses on
providing quality products to its consumer which help organisation in retaining its
consumer and engaging new consumer with organisation. Marks and Spencer also faces
risk of losing market share which can affect Marks and Spencer productivity and
profitability.