Enterprise Risk Management Process

This assignment delves into the Enterprise Risk Management (ERM) process, emphasizing the importance of understanding a company's operations and risk management stages. The team should analyze each stage, recognizing their interdependence. The document suggests dividing tasks among members to identify and organize risk factors while ensuring collective understanding throughout the process.

Enterprise Risk Management

The strengths of risk planning process is that it gives good knowledge, it improves the
analytical skills and team work of the group. But the biggest weakness of the process is lack of
coordination and more time was spent in guiding others to do the work as per the next person in
the stage. This was the are of weakness while carrying out the assignment in a group.
What happened at key points of the process?
 How did your group break down the work for the assignment?
The assignment was divided as per the stages of the Risk Management planning process.
The different stages of the essay like risk management practice in place, risk registration and
Risk map was done individual and later it was complied together (Banerjee, 2016). It has
enabled each member of the group to focus on his part of the assignment and analyses it in a
detailed manner. So, the assessment was broken down as per the stages of the Risk Management
planning process.
 Think about the stages of risk identification, risk assessment, assigning the risk threshold
and risk mitigation.
At the risk identification all the factors that could affect the business of Airbus were identified.
From this, all the major risks were evaluated for the assessment stage. Each risk was divide as
per its probability of happening and the risk associated with it (Bromiley and et.al., 2015). This
gives an idea about the rare and frequent risks in the business. Once the risk are bifurcated as per
their probability and impacts on the business. The next step is to take measures to reduce their
effects on the business.
 Describe what you did at each stage
In the risk identification stage all the risks that are important for the business of Airbus are
identified (Brustbauer, 2016). These risk are then associated with different operations of the
business to see their impacts (Paape and Speklè, 2012). In the next stage they are divided
according to their probability and impact. The risk thresholds are assigned and risk register is
made. At the final stage, a risk map is formed to see the effects and consequences of the
business.
Feelings
 How did you feel at different stages of the process?
The identification of different risks related to the Airbus was an easy and the group was
confident in it. But as the assignment went further into the analysis stage it became more

complex for the group (McNeil, Frey and Embrechts, 2015). Risk assessment was a stage where
the group was not sure about the major risks and their impacts on the Airbus company. The
toughest part of the assignment was risk register and risk mapping. It was complicated and
difficult to understand. There was lot of confusion in allocating the risk factors according to their
probabilities and impact on the business. So, the initial stage was easy and the group was happy
with the assignment. But the later stages became more and more complex.
 Did your feelings change as the process progressed?
The feelings of the entire group changed as the process progressed. It was bit confusing in the
later stages of the process. But when it was completed it gave good learning experience to the
entire group. The group felt the importance of risk management in the organization. All these
stages are based on the risk factors of a particular company and industry (Whitney, Whitney and
George, 2015). As such, it is difficult to understand and analyses the risk management process of
a particular company.
Evaluation – what was good or bad in your experience of the risk management planning
process
 What was successful, and what didn’t work well?
The first stage which was identification and risk association as per the business operations of
Airbus was a successful stage. The group was able to find out most of factors that may affect the
business of the company. But the risk register and risk map was the most toughest and confusing
stage of all (Bromiley, Rau and McShane, 2014). Lot of efforts have to be put in order to get the
desired result. Furthermore, it was difficult to categorize the risks according to the likelihood of
happening and its impacts on the business.
 Think about group working strengths and weaknesses.
The strengths of the group was that each member was given his own task to perform. After this
all everything was complied together to achieve the final result. This was beneficial as each
member had the detailed knowledge about their own part and during compilation they learned lot
of things in the assignment (Moon, Mo and Chan, 2014). Team work and communication was
good. The group has some weaknesses as well while carrying out the project. There was
confusion, some found it difficult to complete their task and there was lot of problems in the
team work during the compilation of the project.

 Think about the risk management planning stages, for example, are some easier to
complete than others, why?
The initial stages were quite easy and it took less time as compared to the stages at the end.
Identification and analysis of different risks associated with the Airbus company was easy. But
evaluation and treatment of risk stage had many problems. The entire group has to work together
on this part as it was completely based on the initial stages of the assignment. Moreover, risk
register and risk mapping were difficult to accomplish by the team.
Analysis – what sense can you make of the process?
 Using information from the previous essay sections, think about what your experience
suggests about the process.
It can be understood from the entire process of the assignment that it should have been done
together as a team. In the initial stages, it was easy to divide the task among the group members.
But in the later stages the teamwork was difficult. There was lot of confusion and
misunderstanding at that time. Instead of dividing the work on the individual basis it would have
been better to do it in a team. This would not only reduce the time spent in explaining others
about different tasks but it would have reduced the misunderstanding. The task which was done
by me was formation of risk register and risk mapping (Hayne and Free, 2014). It was a complex
procedure as the team members did not allocate the risks properly. It was giving incorrect results
as probability of happening and level of impacts were mismatched. It was an easy stage for the
team members but lack of coordination resulted in confusion and misunderstanding. It would
have been better for the team to understand the basics of risk management and its relation with
the Airbus company. This would give a chance for the entire team to carry out their task keeping
in mind the next stage of the process.
Conclusion
 What do your reflections enable you to conclude about the risk management process
it can be concluded from the assignment that risk management is an important process for
Airbus company. It gives them the opportunity to analyze various risk factors and take necessary
precautions against it. This is beneficial for Airbus as it reduces the harm that the company
would face because of the risk factors in the business. It allows different department to
understand the risk that is related to their particular operation. It has allowed Airbus to improve
its risk governance and appoint specialized team who can undertake the task of risk management.

This process requires in depth analysis of all the internal and external factors that can affect the
business. All the details have to be studied as per the specific industry. For example, Airbus may
fact IT risk in the near future. There can be cyber attacks on the website. As such the company
has to prepare themselves and take necessary precaution for this unforeseen event of the future.
Action plan
What actions would you take to enhance the process, for example, if you were asked to do it
again, perhaps for a different organization?
In order to enhance the process, the team has to understand everything about the given company
and risk management stages. The in depth study of these aspects would allow the team to
properly work on the assignment. They would complete their task keeping in mind the needs of
the person in the next stage of the process. This can be a useful technique which can be applied
during the this process. Some of the team members can work on the task to identify and organize
the risk factors. While the next stages of the process could be done by the entire team together.
This will give more ideas and better understanding of the process. It will also reduce the time
spend in teaching and guiding others about the next stage of the process. This was a big problem
in the group as there was lack of coordination among the team members. This process also gives
an important information that all the stages of risk management process are interrelated to each
other. They cannot be carried out separately from other stages.

REFERENCES
Books and journals
Banerjee, B., 2016. Enterprise Risk Management. The MA Journal. 51(3). pp.66-72.
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management:
Review, critique, and research directions. Long range planning. 48(4). pp.265-276.
Bromiley, P., Rau, D. and McShane, M.K., 2014. Can Strategic Risk Management Contribute to
Enterprise Risk Management? A Strategic Management Perspective. A Strategic
Management Perspective (October 20, 2014).
Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural
model. International Small Business Journal. 34(1). pp.70-85.
Hayne, C. and Free, C., 2014. Hybridized professional groups and institutional work: COSO and
the rise of enterprise risk management. Accounting, Organizations and Society. 39(5).
pp.309-330.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Moon, K.K., Mo, P.L. and Chan, R.L., 2014. Enterprise Risk Management: Insights from a
Textile-Apparel Supply Chain. International Journal of Risk and Contingency
Management (IJRCM). 3(2). pp.18-30.
Paape, L. and Speklè, R.F., 2012. The adoption and design of enterprise risk management
practices: An empirical study. European Accounting Review. 21(3). pp.533-564.
Whitney, G., Whitney and George, 2015. SYSTEM AND METHOD FOR ENTERPRISE RISK
MANAGEMENT. U.S. Patent 20.150.379,443.
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