Analyzing Corporate Risk Management: AstraZeneca, EE, and RBS

This report provides an overview of corporate risk management strategies, focusing on AstraZeneca, EE, and the Royal Bank of Scotland (RBS). It identifies and assesses various risks faced by these organizations, including operational, strategic, and credit risks. The report also discusses risk response strategies employed by these companies, such as risk avoidance, transfer, and acceptance, and highlights the importance of effective communication of risks to stakeholders. It references the Canadian Institute of Chartered Accountants' control framework, emphasizing the importance of purpose, commitment, capability, and monitoring in managing corporate risks effectively. The analysis covers specific risks like failure to meet development targets for AstraZeneca, data confidentiality for EE, and credit risks for RBS, illustrating how each company addresses these challenges to minimize potential losses and maintain stakeholder confidence. Desklib offers additional resources and solved assignments for students.

Corporate Risk
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Identification and the assessment of risks related to different businesses:.................................3
Response of the risks by the organisations.................................................................................6
Communication of the risks to different stakeholders..............................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
The methods as well as the process opted by the several organisation to restrict the fiscal
losses which can might occur in the operations and these associated risks are known to be the
corporate risk management. The following report will cover about the three business
organisations which are situated in the United Kingdom. In addition to it, the first part will
concentrate on the identification of the several risks which are their in the business. The second
section of the report will show about how the firm will respond towards these several risks and
last it provides the info on how these associated risks are reported to the company's stakeholders.
Risk of the business means to the organisation's concern towards the exposure of several
elements which may damage the banking business revenue making or can lead to the failure.
Moreover to this, risk of the business is known to be the any situation which jeopardises a
capability of the company in order to attain their long term goals and objectives. The following
report is based on the company AstraZeneca which is the pharmaceutical and bio tech
international organisation that is situated in Sweden and United Kingdom. Firm is having their
headquarters in Cambridge, England. In addition to it, EE is the firm of British which gives the
mobile as well internet network operator facilities to the consumer. This is one of the largest
mobile network service provider. Company was founded in the year 2010 and organisation is
having their headquarters in the Hatfield, United Kingdom. The last organisation is the Royal
Bank of Scotland which gives the banking facilities to their consumers which involves the
opening of the bank accounts, providing loans and many more. This bank is the commercial bank
which is situated in the Scotland.
TASK
Identification and the assessment of risks related to different businesses:
Identification of the risk is the method of recognising optimistic and negative risks which
impact the goal of the organisation. In accordingly to a scenario, a person is planning to the
holiday to Bahamas. He have bought the tickets and booked the accommodation in the seven star
resort which have charged him around one thousand dollars. After a storm impacts the island of
Bahamas few days earlier the flight of the person and due to this all the hotels and resorts were
shuttered and the holiday of the person has been cancelled because of it and then that person is
seeking for the refund and a new place of the holiday. If that person was already anticipated the

season of thunder than he can might negate this issue. So as an outcome of it, Tsunami or
Hurricane can known to be the likeable threat. In addition to it, repercussions of failing to
identification of the potential risk might be the intense, costly and sometimes even fatal. A risk
need to be evaluated qualitatively as well as subjectively at the time when it has been identified.
(Huang, and et.al., 2022) Additionally, assessment of the risk is the method of examining the
risk consequences. In the words of the Layman, the likelihood as well as impact are considered
of the risk. In according to the situation of the Bahamas, the season evaluates the possibilities of
the tsunami or storms striking the island. The assessment of the risk will states more likeness if
the person visit that place at the time of season of hurricane. For the both the seasons non
hurricane or hurricane, the effect on the vacations following thunder can be understood. In the
following situation, the outcome is that the holiday of that particular person is cancelled. So, a
person can eliminate such outcomes by executing the mitigation plan of risk which is suitable for
this condition. Following are the identified risks in the company:
AstraZeneca
Respective firm is encountering several risk in according to the firm. The organisation is
accountable for the managing the risk of the business and giving the certainity to the firm's
stakeholders. The three initial risks which the management of the firm faces are described below
in brief:
 Failure to meet development targets: It is one of the essential risk which the
management of the firm encounters. Development and testing of the pharma product is
the complex and the lengthy method. This necessitates the essential fiscal capital in the
research and development (Kožená, and Mlázovský, 2021). Due to the volatility of the
modification of the product, objectives of the business majorly affected. So the risk is
linked with the operational risk of the company.
 Delay to new product launches: In the pharma sector, having a patent is very essential
die to this all the pharma companies make sure that they have patents of their product.
The firm is not capable to introduce the new goods to the consumers and the launching of
it takes a lot of time and risk which are linked to the research. This risk is associated to
the organisation's product risk.
EE

Confidentiality as well as integrity of the data are the risks which are possessed by the
company. The data which is utilised to offer services to the users is very vulnerable. Due to this,
limited material, specific data is not their to the common people. Limited data is usually
published in an incorrect way. As this technique has the negative impact on the faith and the trust
of the consumers which minimises the revenue of the company. There are various risks which
are encountered by the firm is mentioned below briefly:
 Operational Risk – This is linked to the company's routine operations. There is the risk
of observing, reviewing and giving the technical consultancy on the system of the
telecommunications. There is the vast mixture of the central equipments in order to install
as well as address the issues with it (Habib, and et.al., 2021).
 Strategies Risk – This is the risk which has encountered by the company as the outocme
of the outside situation. This hinder with the objectives and the vision of the company. At
the time when the evolution of the technology, this becomes more hard as well as costly
in order to cope up with the latest tech.
Royal Bank of Scotland (RBS)
As the working is done internationally, the banking sector encounters several number of
the risks, involving the risk of payment. As the importers desires to purchase the products on
time as well as exporters requires their payment as soon as they can get. Moreover to it, they are
majorly are not protected with the risk of the foreign exchange as the outcome of the fluctuation
in the rate of exchange. Credit risk is also the major risk associated to the company workinng in
this industry which entails the creditworthiness of the counterparty and also the risk of the
fluctuation of the interest rates as well. Below are the risk assessment of The Royal Bank of
Scotland in the effective way:
 Giving the business proof worries as the type of the guarantee for the bank and the letter
of credit which gives more security for the organisations and customers as well
(Gorzelany-Dziadkowiec, 2021).
 LOC makes sure a safe passage for the payment as it minimises the risk of not getting the
amount after the delivery of the products in the global markets.
The bank's first-hand risks might be classified into the several aspects which is mentioned below:
 Risks of credit comes at the time when a person is not able to meet his obligations which
is written on the contract.

 Risk of the capital market comes at the time when banking practices are related to the
markets firm is working in.
Response of the risks by the organisations
A risk response strategy is term as a strategy for managing with the term of risk on their
project. To avoid, neglect, transfer, actively accept, passively agree and intensify the risk are the
primary risk response strategy for the threats. A risk response tactics is an essential factor of any
successful project management plan of actions that will support the business to ignore
humiliation, legal terms of actions and as well as economical loss. If the respective is share
minded then their plan can be manages with suitable course of the framework in their business of
management. By developing risk response strategy, it will be effective to make sure that the
project is not endangered. Other conceivable section for their section is to maximise the
opportunities that are presented by positive risk. The target is to ensure that if there are any
positive risk to the project they they have a tactics in their pose to manage by them.
Every business firm should have the power in order to minimises the danger and make
sure exact fiscal reporting is done. Management executes the systems, methods and techniques in
order to make sure the effectualness of the firm, the exactness of external as well as internal
fiscal accounting and also the abiding with the policies and laws as well (Armanious, and
Padgett, 2021).

The criterion of control frame work is introduced by the Canadian Institute of Chartered
Accountants (now CPA Canada) in which 20 control criteria has been included which can be
used by the management of the company in order to monitor the corporate performance and
enhance decision-making. With the help of this framework external financial reporting is get by
the tax authorities as well as shareholder of the firm. This framework assist the organisation in
effective control which have been discussed below: -
 Purpose- it is very important that the goals and objective s of the company must be
defined and conveyed to all the stake of the company. Then an internal as well as external
evaluation of the risk has been done which may assist the company in the achievement of
the goal(Mansoor, and et.al., 2021). After this, the management adopts the policies
which gives guarantee that the risk which are identifies can be manage effectively. These
rules also covey to employees of the organisation so that they can also make their efforts
towards the same directions. Once the plane is made then it shared to everyone and target
which achieved comprises of strategies which are produced during this phase.

 Commitment- the ethical ideals of the firm must be developed, codified and conveyed to
all the members of the company in proper manner. The policies of HR must be altered as
per the ethical ideals of the firm and by the management. Afterwords, the obligations
must be defined in a very clear manner and also align with the objective of the firm. After
this an effective environment has been provided to the employees which guaranteed that
all the information is accessible in order to achieve the goals of the company.
 Capability- this phase comprises of different actions which are pre-programmed. The
purpose and the determination of the employees in order to reach the set target are clear
defined and they have the capability to face all the difficulties before take any action.
 Monitoring and learning-it is very important that the people believe in the progress of the
firm and have to participate in al, the activities of the firm. Not only the internal and
external environment of the firm is monitored but also the performance is also
monitored(Qiang, Wang, and Xu, 2021)Communication of the risks to different
stakeholders. In this,this is overlap by the inspection, verifying, overseeing, and
scrutinising, which is very hard to control. Challenging assumption is very important to
control as is allow an individual to achieve all the success.
The following are the business of AstraZeneca's reaction on the threats which outlined above
has been discussed below:
The first step of the firm is to set the the goals at a very low level in relation to the danger of not
attaining the set objectives which are developed by the management of the firm. Focus has been
paid by the AstraZeneca on identifying the real threat which are going to be faced by the
company in order to meet the needs of operations. The growth of the company is expected to be
gradual. All the information which is required by the organisation and also about its competitor
is gather by the company for the different sources and organises its next line of action
appropriately
 COCO framework is utilized by the AstraZeneca ans start with their workers. Proper
guidelines is conveyed by the business like what are the needs of the business or what the
business wants. Along with this what capabilities are required to achieve the how the risk
can be reduced.


 The pricing control of the company items are not in properly control of the company.
Focus has been paid by the AstraZeneca's on the new methods in order to reduce the
expenses which are associated with the operations. In order to mitigate the risk of
revenue the management of the Astrazeneca's company is diversifies its product range
that are not subject to market price regulation(Salvi, 2021). To make its supply chain
more the company management is going to focus on the different ways which assist in
reducing or saving the expenses.
EE
Risk exposure may be defined as the process of identifying the risk which are going to be
occurred in future on the result of a particular action. Following are the different types of
response in relation to the risk exposure has been discussed below:-
 It is very important for the management of the company to identify all the risk of the
organisation on priority. The phCommunication of the risks to different
stakeholdersysical assets of the firm is protect by this EE by ensuring that these are
checked on the continuous basis. Wireless towers, fixed line ducts, and conduits, are
some of the example of the physical assets
 The market of EE is very dynamic in nature, it is very important for the management of
the company to adopt the coco framework which give value to their mission and also
assist them in bringing out the latest technologies in the competitive marketplace. This
also make them more competitive to minimize the outside risk.
The methodology of the Five step risk management assist the firm in identifying the company
risk which hev been discussed below:-

 Risk identification: in this stage risk has been identified which are very difficult to
manage(Tripathi, Hasan, and Neeraj Jha, 2021). In relation to the EE, it is very
important to determined if the speed of the network is constant. High amount of risk is
face by their rivals that are Claro, Teletalk, and Dhiraagu.
 Quantitative risk:- this is a type of risk which can be quantifiers numerically. On the
profitability as well as on the revenue of the company EE has a detrimental influence.
This result in reducing the profits of the firm.
 Qualitative risk – this can't be quantified which have an indirect influence on the per\ of
the company.
 Risk response planning – if the plan is prepared by the firm previously then this assist
in removing the risk. The proactive procedure of the risk detection assist the EE in
smoothly perform the company operations.
 Risk monitoring and control – it entails to determines the deviations and taking suitable
measures to identify the risk.
Communication of the risks to different stakeholders
EE
Data on several risk is utilised by many stakeholder in the EE, it involves as investors, the
government and another financial sections to plan as per to them. For example, at the time of
creating investment it will chosen, investors that concerns the level of risk that will followed in
the business. As a outcome, all telecommunication management stakeholder should be informed
on the business's risk schedule.
Physical risk - It termed to the issues that present in the management that are adverse to the
workers health. As there are several amount of the risk like installation of the network signs and
circuits that will phrased an essential risk of effective harm to personnel's well-being.
Royal Bank of Scotland (RBS)
Due to the stakeholders who own the banking institution, it is crucial to manage their
issues to them and effective banking communication will get increase the dealings among
customers, suppliers, stakeholders, staff and board of the directors as well. The bank use several

sort of communication medium like communication is a significant part due to which it involves
significant sections and manages it with stakeholders on regular course of basis. Hence, when
functional variations occur, effective communication is crucial to the banks that have skills to
help their regular terms of the consumers(Zahra, 2021). On the other hand the bank of the
Scotland's size or complexities will get manages with sort of plan of actions to deal with their
stakeholders. In respect to deal with banking laws and regulation they should manage a suitable
level of safety and privacy. Stakeholder reporting is crucial that not just banks will take part in
the task but also stakeholders will manage their monetary value into it. On the other side,
external shareholders have an impact on the longer and shorter term of success of the project that
maintained by the Bank of Scotland.
CONCLUSION
From the above mentioned report it has been concluded that, risk assessment and
response are generally effective priorities and crucial framework for each business. The sector in
that the business functions will not effectively apply that the risk is low or high. Each
management deals with the risk by having several sort of variety of the issues. To rationalize the
issues of such risk, management should obtain various patents that are related to the
biotechnology and as well as pharmaceutical products. Each term of the risk have to certain with
mitigation tactics. The EE present several sort of corrective and suitable activities that involves
as defending the communication sector as in physical assets in an effective and efficient manner.
The danger of system loss can lead to mitigated by recruiting skilled IT specialist with EE
monetary value from a sort of manner. As the outcome of the present section, EE should be
checked on each section of the revenue in respect to decrease the opportunities of defaults. The
respective banking institution risk have been analysed in this research in the manner of the risk
that are connected with various sections. The following discussed with several terms of the risk
in which they deal and encounter the manner to maintain and as well as decline such term of the
risk factors over longer period of the time. At last of the following report, shareholders will be
notified about several sort of the risk in which the banking institution will be followed.

REFERENCES
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