ITS 835: Risk Identification and Assessment for General Motors Report

This report identifies and assesses the risks that could impact General Motors as it transitions to electric vehicles. It uses game theory to analyze potential risks, including economic and policy risks, and considers how these risks might affect the company's business structure and revenue. The report also discusses the use of Enterprise Risk Management (ERM) to identify and mitigate these risks, referencing the ERM team's role in developing risk mitigation plans and monitoring their effectiveness. The report concludes with an analysis of intrinsic, present, and residual risk levels. The report is based on the provided case study and aims to provide a comprehensive overview of the challenges and risks faced by General Motors during this transition. The report also references the use of game theory in identifying and assessing risks and the role of ERM in mitigating them.

Running head: IDENTIFICATION OF RISKS FOR GENERAL MOTORS
IDENTIFICATION OF RISKS FOR GENERAL MOTORS
Name of the Student
Name of the University
Author note

IDENTIFICATION OF RISKS FOR GENERAL MOTORS
Table of Contents
Introduction: 2
Game theory to identify and assess the major risk 2
Risks: 3
Conclusion: 3
References: 4

IDENTIFICATION OF RISKS FOR GENERAL MOTORS
Introduction:
The aim of the report is to identify and asses the risks that can impact on the business
structures of the General Motors organization. The General Motors is a vehicle or automobile
company that has decided to replace one of their traditional lines of vehicles with all the
electric based models in the market. This decision can impose certain risks on the
organizations and on their business structures which can directly affect the revenue of the
organization.
Game theory to identify and assess the major risks
The General Motors can use the Game theory to identify and asses the major risks that
can create impact on the organization due to this decision. The optimum measures to tackle
the recognized risk should be based not only on the risk "owner" view (Management), but
also on the other two party’s views (Employees and Competitors). The Game Theory
influences the way in which the other sides will react to the risk choice. Gm could use the
game theory for the identification of the risks as the Game Theory provides the certain
attributes like the identification of the assets where Game theory provides the step of the
scenario investigation (Myerson, 2013). The game theory attribute of identification of
vulnerabilities searches the options that can be impacted by risks in implementing the electric
model in their new models. The GM motors can proceed with the identification of
consequences that identifies the player’s preferences which is the priorities within security
measures for the new technology.
The collected data is so abundant that it can guide strategy and tactics. Since the
suggestions and inputs given by the respondents are closely logically connected, choices are
usually altered on the basis of analyses.

IDENTIFICATION OF RISKS FOR GENERAL MOTORS
Risks:
The heritage automakers pose a significant danger in their business while launching
electric vehicles. The market for petrol cars is highly advanced and competitive. Margins are
hard to get through. Based on a margin of about 10% on its cars, GM made a profit of $2.5
billion. GM pays shareholders a major dividend, with nearly 25 percent of the anticipated
revenues in one year, whereas $2.5billion appear like a enormous amount. The two risks are
the Economic risks and the policy risk that can affect the company after implementing
electric models.
The ERM method is designed with the vision of GM in mind: the design, construction
and commercialization of the finest cars in the world. The method itself focused on
identifying and managing main hazards (Helper & Henderson, 2014). The ERM team helped
line managers develop a list of the most significant corporate risks, identify risk owners,
assist management with the management teams to develop the risk mitigation plans, provide
on-going supervision and report results to senior management and the board of directors.
Conclusion:
The report focused on using three actions, the level of intrinsic, present and residual
danger as indices to identify where the mitigation activity of the organization was presently
being affected and where the mitigation plans were anticipated to be completed. We have
developed a five-point scale for intrinsic and residual risk assessments.

IDENTIFICATION OF RISKS FOR GENERAL MOTORS
References:
Helper, S., & Henderson, R. (2014). Management practices, relational contracts, and the
decline of General Motors. Journal of Economic Perspectives, 28(1), 49-72.
Myerson, R. B. (2013). Game theory. Harvard university press.