LSBM302 - Corporate Risk Management: Teneo Crisis Case Study

This case study examines the corporate risk management failures at Teneo, a brand awareness and consulting firm, following its CEO's misconduct. The analysis includes risk assessment, identifying operational, reputational, and strategic risks, and proposes risk responses such as enhanced auditing, leadership development, and crisis management strategies. The document highlights the importance of proactive risk mitigation and ethical leadership in maintaining organizational stability and reputation. The paper also suggests a plan to improve the company's image and maintain customer relationships. Desklib offers this document as a resource for students studying corporate risk management, along with a wealth of other solved assignments and past papers.

Corporate Risk
Management

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Assessment of risk...................................................................................................................................3
Risk responses.........................................................................................................................................5
CONCLUSION...............................................................................................................................................8
Recommendations...................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
Teneo is a brand awareness and consulting firm. Declan Kelly, Paul Keary, and Doug Band
launched the firm in June 2011 and it now employs over 1,350 people in 38 facilities across the
globe. Teneo sold a controlling ownership in the company to CVC Financial Group in 2019 for
$700 million. Some of the nation's major corporations, including Coca-Cola, Dow Chemical, and
IBM, seek its counsel. Current Speaker Paul Ryan and current Xerox CEO Ursula Burns are
among its renowned consultants. Teneo's board "absolutely believes in Teneo's distinctive
C.E.O. consulting approach, worldwide presence, and continues to give exceptional superior
customer experience," according to the release. It’s strategic and address issues are spread over
33 locations in 13 countries, allowing us to provide customers with a truly international
viewpoint as well as on assistance in a number of locations (Lessing, and Willis, 2019).
After stories of Mr. Kelly's inebriated behaviour at a charity dinner last month, the
business, which specialises in incident management, has been grappling with its own turbulence.
Kelly's spokeswoman told the Financial Times in the week before the party that the CEO had
become intoxicated and acted aggressively toward other males and females. Kelly stated in a
letter that he committed "an unintended, public, and humiliating error for which I accept total
accountability," and that "a battle attacking our company's image has proceeded and may perhaps
extend in the days ahead." Regardless of the reality of any such allegations, I wouldn't want them
to continue to be a major distraction for our business.
MAIN BODY
Assessment of risk
The Financial Report states on June 24, 2021, that Chairman and CEO Declan Kelly had
improperly handled six females at a World Citizen Charity benefit concert in May, according to
the Financial Times. Kelly was dismissed from the company of World Citizen, which is led by
Christopher Stadler, a shareholder who manages Venture Capital firm Partnership' interest in
Teneo, the next day after an inquiry was initiated. Kelly was allegedly committing adultery with
a junior executive at the moment, according to other individuals. Teneo had a teleconference
with its UK-based closest aides on June 25, General Motors had terminated Teneo as its public
affairs consultant, and a senior chief executive had departed from the business, according to

reports. Declan Kelly withdrew from Teneo on June 29, and founder Paul Keary assumed the
position of chairman and CEO. Ursula Burns was named chairwoman of Teneo immediately
afterwards.
Social, economic, computer security, and epidemiological hazards are among the
transdisciplinary and overlapping concerns that must be addressed. Teneo's Financial Advisory
company division comprises CEOs with a comprehensive strategy to identifying, managing, and
mitigating operational risks. If it's terrorism, reputational risk, geopolitical risk, or cyber danger,
increasingly challenging business climate requires firms to manage a variety of transdisciplinary
and overlapping threats throughout the company. Because of the complexities of this threat
environment, new risk reduction methods and techniques that go beyond common security
operations are required. Teneo's risk consulting team works in tandem with the company's full
CEO advisory offering to provide a holistic approach to assisting customers in addressing these
concerns inside the framework from their own specific activities (Rolland, Mathiassen and Rai,
2018).
International risks: Even if their shapes alter, the majority of the non-economic global hazards
reported in recent years show no promise of mitigating in 2018. No nation, for instance, is
impervious to the terrorists mentioned above, and populist movements in numerous capitals are
trending toward tyranny. Changing climate and associated or unconnected catastrophic events
will certainly have an impact on businesses and their employees. Syria will be a concern in 2018
as it was in 2017; while combat activity may decrease, the migration problem in the country may
intensify when purges accompany the end of open battle. The East is the location of the most
significant possible dangers.
Political risk: Politics, anti-globalization sentiment and the threat of international conflicts: in
this age of social unrest, corporations are no longer separated from politicians; they are
obviously impacted by them. The policy and political strategic advisory team assists corporate
executives in anticipating, analysing, and navigating political difficulties. They deliver
comprehensive, business, with a forward geopolitical risk consultancy and advising services.
From one firm's regional impact to its globalized economy, and a nation's fiscal policies to its
economic forecast, we assist corporate leaders comprehend public developments and their
ramifications for finance companies institutions. They uncover market-moving political factors

and estimate results and situations. Teneo assists customers in incorporating political possibilities
into their accounting and business plans in this manner.
Physical security risk: In today's environment, vital assets are important objectives. Workers,
consumers, and partners are among them, as are physically buildings and facilities, corporation
headquarters, sports stadiums, public meeting places, distribution networks, data centers, and a
variety of other institutions, properties, and commodities. In today’s competitive economic
climate, CEOs are ultimately responsible for ensuring that their investment, either personal or
physical, is protected from a large number of natural and man-made risks (Feldmann and et.al,
2019).
Operational risk: The circumstance encountered in July 2021 had a significant influence on the
company's operating, resulting in operational risk. This involves failure of procedures, rules,
systems, and so on as a result of work - related mistake, which in this case is sexual misbehavior
with females. These have increased the organization’s information risk, which has a negative
influence on the company's core operating efficiency. Based on this, the reason of this
acknowledged is related with improper professional behavior, inconsequential administration of
activity by relying on Kelly & Band for growth and improvement, and etc.
Reputation risk: As a network operator in the business, it is critical for the company to focus on
the relevant growth of dependability in the marketplace by implementing excellent practices.
Teneo's brand image has been negatively caused by the effects of the aforementioned occurrence,
which has also hampered its dealings with customers. Specialization and knowledge gained
while Kelly's disappearance has had a detrimental impact on the person's performance.
Risk responses
Teneo's Financial Advisory business division comprises CEOs with a comprehensive
strategy to identifying, managing, and mitigating operational risks. We offer full strategic advice
on how to increase disaster resilience, resilience, and reduction. Formerly New York City Police
Director William Bratton leads this business area, which includes a world-class team from the
most prestigious commercial, military, espionage, consultancy, technological, global health, and
governmental entities. Their team's varying perspectives and expertise enable us to handle a wide
variety of international challenges that CEOs face everyday.

The political risk advisory team combines extensive national understanding with the in
connections to assist companies at every stage of the road. Teneo can help firms acquire an
objective and unbiased view on the regions that contribute most to their operations, and also the
objectives of important stakeholders, drivers, and judgement, via continuous monitoring and
reporting.
A shocking record of very disruptive and expensive intrusions, either through illegal
deployments of ransom, country players, computer hackers, or ethical hacking, has emphasised
the necessity of cybersecurity risk management for enterprises. The epidemic and the resulting
work-from-home atmosphere has broadened the system vulnerabilities even further, giving
attackers a rich battlefield. Don't just essential infrastructure organisations, but all enterprises
must prioritise cybersecurity. Several businesses, on the other hand, are unsure how to prioritise
cybersecurity risk mitigation techniques in the wake of an ever-changing collection of malicious
attackers and strategies (Nikoobakht and et.al, 2019).
If it's terrorism, pandemic, physical security risk, political conditions, or cyber danger,
businesses are faced with reducing an assortment of multidisciplinary and crossing risks
throughout the company in history's complicated operational environment. Such risk landscape's
diversity necessitates novel risk mitigation techniques and approaches that go beyond typical
security procedures. Researchers are going to lead protection and political risk advisors with
upbringings from the world's most influential company, intellectual ability, community, general
populace, and introduce new products, guided by Bill Bratton, former NYPD and LAPD Police
Chief and existing Deputy Chairman of the Receptionist of Homeland Ministry's Advisory
Board.
This lengthy research, in combination to relatively close moderate surveillance and
boundary mapping, detects developing patterns, allow employers to prepare itself to profit from
overall social and economic transformations when they occur. To express various viewpoints, we
provide a range of services that are adapted to each of our customers' requirements. Designers
conduct non-financial thorough research on federal agencies and influential political individuals,
agendas, and procedures, as well as discovering and characterizing main players and dominant
political links, to assist a firm in analyzing a merger, collaboration, or market entry potential.
They design enter into a relationship to engage consumers with their governmental and non-

government communication strategies in connection with this solution, collaborating with
Teneo's police and government relations expertise.
Risk Matrix: The mentioned register is useful in determining the current deficiency locations that
have an impact on the firm's operations. This involves assessing and prioritising risks based on
the intensity of their consequences.
Main risk Reason of risk Effect Level of risk Risk response
strategy
Strategic Incorrect
corporate
judgement
Instability of
firm
High Addressing
deficiencies by
recommending
corrective
measures such as
establishing a
realistic aim,
characterized by
the development
decisions, and so
on.
Operational Collapse of the
procedural and
strategies
framework
Non-desirable
consequence
occurs
inadvertently.
Medium Recognizing a
need in the
allocating funds
and duties in
accordance with
that requirement
Compliance Not adhering to
the principle of
treating others
with respect.
Bad reputation &
rise in legal
complication
High Assuring that
regulations are
adhered to in a
substantial way.

Reputation Kelly
misconduct
Efficiency to
meet customers
demand
medium Assuring that the
team's growth is
proper in order to
accomplish the
goals
Financial According to
Kelly's and the
band's
disappearance,
there is a lack of
expertise.
Influence on
financial
stability.
Medium Implementation
of a suitable
product
development and
customer
engagement
strategy.
To overcome the existing dangers, the indicated company has focused on developing an effective
leader order to bring about changes the firm in order to execute the appropriate strategy and
purpose. Its crisis management approach has focused on establishing and implementing a
comprehensive response strategy to ensure compliance with applicable and essential business
imperatives. The major purpose of carrying out this activity is to have necessary skills to
minimise risk, preserve confidence and commitment, and safeguard reputations in order to
operate for extended periods of time. Furthermore, reconstruction by organizational change in
order to preserve trustworthiness in order to get higher revenue.
CONCLUSION
It can be stated from the preceding research that business risk management is one of the
most important strategies for overcoming threats. Operational, organizational, cultural, financial,
and regulatory risks have all been recognized in the latest research. The current examination has
resulted in quality improvement such as addressing deficiencies, adhering to regulations, and so
on.

Recommendations
• It is recommended that continual auditing be done in order to discover the areas that are weak
and to be able to remove unnecessary aspects. It has the potential to increase operational
efficiency, resulting in greater profitability of the company. The major purpose for doing so is to
acquire a better result in a more efficient manner by decreasing current risk and enhancing
capacity to realize qualitative set objectives.
• This is informed to the organisation to concentrate on obtaining meaningful insight regarding
study of organizational so that applicable performance can be ensured by guaranteeing that a
specific threat is prevented, excluded, prevented, shared, and so on in order to achieve
compliance with current environmental requirements by taking appropriate action. This may be
accomplished by assuring the implementation of management and implementation of leadership
theory in order to achieve the goal of credit risk management.

REFERENCES
Books and Journal
Feldmann, S. and et.al, 2019. Managing inter-model inconsistencies in model-based systems
engineering: Application in automated production systems engineering. Journal of
Systems and Software. 153. pp.105-134.
Lenferna, G. A., 2018. Can we equitably manage the end of the fossil fuel era?. Energy Research
& Social Science. 35. pp.217-223.
Besker, T., Martini, A. and Bosch, J., 2018. Managing architectural technical debt: A unified
model and systematic literature review. Journal of Systems and Software. 135. pp.1-16.
Lessing, B. and Willis, G. D., 2019. Legitimacy in criminal governance: Managing a drug
empire from behind bars. American Political Science Review. 113(2). pp.584-606.
Madi, N. and Srour, I., 2019. Managing emergency construction and demolition waste in Syria
using GIS. Resources, conservation and recycling. 141. pp.163-175.
Rolland, K. H., Mathiassen, L. and Rai, A., 2018. Managing digital platforms in user
organizations: The interactions between digital options and digital debt. Information
Systems Research. 29(2). pp.419-443.
Online
https://www.teneo.com/careers/risk-advisory/service/risk-advisory/
https://www.teneo.com/service/risk-advisory/