LSBM302 Case Study: Risk Management Evaluation of Teneo's Crisis

This report critically evaluates the Teneo crisis in July 2021, focusing on its risk management strategies in terms of risk assessment and risk response. It identifies key risks such as operational, security & fraud, reputation, financial, strategic, and compliance risks. The report uses tools like the risk register matrix and bowtie risk assessment to classify and analyze the impact of these risks. It also examines Teneo's response to the crisis, including efforts to rebuild trust and improve stakeholder engagement. The analysis identifies gaps in Teneo's approach using the 4 T's of risk management (tolerate, terminate, treat, transfer) and Failure Mode and Effective Analysis. The report concludes by highlighting the importance of effective corporate risk management for organizational success and mentions IFGC as one of the risk governance approach.

Corporate Risk management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Assessment of risk.......................................................................................................................1
Risk response..............................................................................................................................5
CONCLUSION ...............................................................................................................................8
Recommendations.......................................................................................................................8
REFERENCES................................................................................................................................9
Online .........................................................................................................................................9

INTRODUCTION
Corporate risk management refers using all the methods which are helpful in overcoming
the situation that can incur losses to business. In the current era, competition and complexity in
respect to carry forward the operational practices so having effective corporate risk management
strategy becomes essential in order to gain effectiveness. The present report is based on Teneo is
the public advisory organization that pay attention on developing good consulting services in
turn higher productiveness can be received. Teneo possesses the strategy to offer bespoke &
seamless advisory service on integrated basis in turn achieving objectives of clients can become
possible. There are several international organizations which are indulged with Teneo in respect
to get the advisory service for meeting their overall enterprise goals.
The firm has faced crises situation due to unethical practices of Kelly which has
adversely impacted brand image of business. The reason behind such result is that Kelly being
drunk has misbehaved with women in the social event that has made him to resign. Kelly and
Band. These both the person were fully responsible for the growth & development whose
absence has made difficult for Teneo to pay attention on taking significant strategy so that
higher quality performance can be delivered to clients. The key causes that has been identified
from the evaluation is that company has been fully dependent on Kelly and Band for managing
the operational practices of firm and lack of proper allocation of responsibilities in turn overall
functioning in effective manner can become possible.
MAIN BODY
Assessment of risk
Key risk
There are several types of factors which may result in influencing the smooth
functioning of business in adverse manner which are referred as risk to organization (Leo,
Sharma and Maddulety, 2019). From the evaluation of presented information it can be
mentioned that there are number of reasons which are influencing functioning of Teneo that is
affecting its profitability & sustainability. There are different forms of the risk which are
outcome due to arising of the such presented situation. This involves reputation, operational,
competition, security & fraud and financial risk.
Operational risk
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This is basically related with internal & external factors combination which influences
the ability to conduct operational actions. In the given case, there is presence of operational risk
as non-availability of Kelly & Band can affect the ability to deliver quality service which can
result in dissatisfaction of persons.
Security & fraud risk
There are several types of information which are required to be kept within firm in turn
higher competitive situation to deal with prevailing competition (Araz and et.al., 202).
Resignation of Kelly & Band can occur in increase of threats to the business in terms of misuse
of confidential information.
Reputation risk
The one of crucial factor that leads the firm towards success is its brand image which
has been adversely affected due to miss behavior executed by chief executive, chair and co-
founder of Teneo.
Financial risk
The crises prevailing in business may affect the brand value in market and result in
financial position of company. The reliance on the mentioned employees who are no longer part
of organization can result in affecting the functioning of organization.
Strategic risk
Teneo has not allocated the responsibilities among the employees properly which has
made to rely on Kelly and Band that is impacting the functioning of business. There si lack of
proper strategy management in firm in turn leading risk to company.
Compliance risk
For having proper ability to coordinate with requirements of market adhering to
prevailing rules & regulations become essential. In the given case, there has been inappropriate
behavior with women is highly prohibited in society which is arising legal obligations to firm.
Classification of risk
The classification of risk for assessing that which are largely impacting the success of
Teneo following methods can be applied.
Risk register matrix
Risk type Description Impact
of risk
Mitigation action
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Strategic risk There is higher level of reliance
on Kelly and band and no
proper delegation of
responsibilities (Okudan,
Budayan and Dikmen, 2021).
High This can be done by applying
the relevant application of
strategy which ensure
appropriate proportion of roles
& responsibilities in turn
greater flexibility can be
derived.
Reputation risk Disrespectful action executed by
Kelly which has effected
position of Teneo.
High Executing effective marketing
& promotional practices can
permit getting higher ability to
get trustworthiness & credibility
in market.
Financial risk Quality of service has impacted
due to absence of trustworthy
person of clients
Mediu
m
Having relevant financial
planning & forecasting and
application of variance analysis
can help in identifying cause so
that improvement action can be
achieved.
Compliance risk Obligation of non adherence to
respecting women can arise
legal complications
High Implication of standard bench
marking can help in gaining the
objective of making employees
understand adherence to
prevailing rules & regulations
(Wang, Zhao and
Huchzermeier, 2021).
Security & fraud
risk
Threat of misuse of information
which are need to be
confidential data
Mediu
m
This can be effectively dealt by
gaining proper formulation of
deed to explain consequences
of unethical utilization of
information.
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Operational risk Improper management of action
by ineffective identification &
forecasting of unforeseen
situation.
High For improving ensuring
application of quality practices
& mitigating risk can allow
accomplishing objective of
having proper smooth
functioning.
Bowtie risk assessment
It is one of the relevant strategy of assessing the prevailing risk in the specified company
identifying the gap in prevailing course of action and new methods can be assessed. This can be
effectively exerted by having effective recognition of the prevailing risk and having evaluation
of current control & causes along with new course of action so that proper bow tie analysis can
be done (Risk Assessment Matrix, 2022.). From the evaluation of the prevailing situation
regarding Teneo crises happened in July, the main causes are found is higher level of reliance on
Kelly & Band which has adverse impact on the performance of enterprise. The consequences of
absence of these tow mentioned personalities can result in different types of risk such as
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strategic, operational, financial, security, etc. These can be properly overcome by taking the
improvement actions like gaining trustworthiness among clients, by establishing effective
marketing strategy. Proper clarity of goal & responsibility among employees higher productive
standard bench marking, effective quality improvement measures, etc can enhance the growth
& development of business.
ABC model is related with assessing the attitude of employees prevailing in Teneo by
paying attention on values, beliefs, understanding as there is link between these factors and
behavior to culture can be assessed. On the basis of evaluation it can be mentioned that business
is possessing inappropriate level of attitude that is leading to ineffective behavior and affecting
the culture of organization which is adversely influencing processing of business.
Risk response
Explaining the response of Teneo to risk exposure
For overcoming the hostile public response due to the negative perception regarding the
organization image & ineffective leadership action company has implemented certain course f
action. In order to get the ability to rebuild the trustworthiness and confidence among clients
company has given focus on improving its faith in organizational leadership practices. There has
been proper arrangement for gaining the ability to ensure the alignment of strategy with legal &
core business imperatives, and properly equipped to manage crises by ensuring execution of
bespoke framework (Lu, Liu and Falkenberg,2022). In addition to this, Teneo has given
emphasis on having the relevant method of change & issue management so that developing
capability to manage & monitor unforeseen situations can become possible. It has ensured to
maintain reliable level of stakeholders analysis, insight & engagement, developing political and
media relations so that eliminating & mitigating negative impact can become possible. In order
to increase the satisfaction of clients much emphasis has been given on delivering proper
understanding about field of intelligence, communications, public safety, etc so that better
quality service offering can be ensured in sector.
Identifying the gaps & shortfalls in Teneo's approach
This can be effectively identified by applying the different course of action in turn
meeting the objective of improving the organizational performance can become possible.
4 T's of risk management
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It is one of the approach which can be implemented by business for ensuring that
effective improvement in overall performance. This can be properly done by evaluating the
response through focusing on four T's such as tolerate, terminate, treat & transfer.
Tolerate
When the impact of the prevailing risk is found to be low, it is included in the
tolerating category in turn accomplishing organizational objective can become possible. In the
Teneo processing there is no risk which can be tolerated.
Terminate
these are the threats which can be far h outside from the appetite of organization so
terminating become essential (The 4Ts of risk management, 2022). Teneo as being global firm
require to pay attention on terminating such risk that is hampering growth & development like
being reliance on few resources by diversification of resources.
Treat
In this higher level of focus is provided on taking the crucial actions in order to get
modified results. This involves operational, financial, strategic, reputation, compliance, etc. it
can be recognized that applied course of action by the firm is effective which is helpful in
overcoming the prevailing threats.
Transfer
this is concerned with developing such practices which can help in overcoming the
existing obligations by transferring to the third party. In this respect, the mentioned company can
pay attention on having appropriate management system for protecting & preventing data related
with parties.
On the basis of this it can be mentioned that firm is implementing effective strategy so
that accomplishing objective of dealing effectively with crises can become possible.
Risk response matrix is one of the strategy is helpful in gaining the significant level of
strategy in turn accomplishing the objective of higher profitability and stability can be attained.
This is basically concerned with having appropriate level of effectual strategies through focusing
on strategies such as avoiding, reducing, transferring, accepting and taking risk to attain the
organizational objectives.
Failure Mode and Effective analysis
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It is one of the approach which can be taken into consideration for analyzing the failure
modes and effective analysis in turn organizational ability to deal with threats can become
possible. This is basically done by reviewing the process, brain storming potential failure modes,
listing potential effects of each failure, gauging likelihood of occurrences & detection. Teneo as
being international organization has given focus on developing the effective strategy that pay
attention on recognizing failure which are ineffective strategy formulation, improper compliance
with legal requirements, etc. In addition to this, severity is rating from one to ten that helps in
understanding its level of consequences so that appropriate action can be taken. In the current
scenario, operational, financial, strategic and security related issues are found to be four to six
which depicts moderate level of impact. In addition to this, very high risk is found in
compliance and reputation factor. On the basis of this likelihood it can be interpreted that firm is
taking effective improvement action according to requirements in turn failure detection can be
recognized.
Relevant aspects of risk governance and regulatory risk
IFGC is one of the risk governance approach that help in managing important issues so
that relevant structure & processes can be applied (Settembre-Blundo and et.al., 2021).
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It involves identifying risk at early stage, appraising by focusing on assessment of
threats, management by taking crucial decision-making and cross-cutting aspects h through
communicating internal & external so that delivering relevant formation to stakeholders by
ensuring proper compliance with legal requirements can become possible which is exerted by
Teneo.
CONCLUSION
From the above report it can be concluded that having effective corporate strategy is
important in order to take relevant course of action for getting success. The current study has
evaluated that firm is facing crises due to excess reliance on Kelly and Band for the growth &
development which is resulting into different kinds of threats to business. The present report has
involved evaluation of key risk like operational, strategic, etc and classification by applying risk
matrix & bow tie assessment and evaluation of response by applying risk response matrix, etc.
there are lacking areas which can be improved by applying following actions.
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Recommendations
 It is recommended to company to conduct proper feedback mechanism in turn
information regarding lacking areas can be obtained. This will allow firm to assess
irrelevant components in turn application of suitable course of action can become
possible.
 This is suggested to the business to focus on gaining effective market evaluation in turn
having crucial data to execute proper quality standards in turn objective of business of
improving reputation, financial performance, etc can be derived.
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REFERENCES
Books and Journals
Araz, O.M. and et.al., 2020. Data Analytics for Operational Risk Management. Decis. Sci..
51(6). pp.1316-1319.
Leo, M., Sharma, S. and Maddulety, K., 2019. Machine learning in banking risk management: A
literature review. Risks. 7(1). p.29.
Lu, H., Liu, X. and Falkenberg, L., 2022. Investigating the impact of corporate social
responsibility (CSR) on risk management practices. Business & Society. 61(2). pp.496-
534.
Okudan, O., Budayan, C. and Dikmen, I., 2021. A knowledge-based risk management tool for
construction projects using case-based reasoning. Expert Systems with Applications. 173.
p.114776.
Settembre-Blundo, D. and et.al., 2021. Flexibility and resilience in corporate decision making:
A new sustainability-based risk management system in uncertain times. Global Journal of
Flexible Systems Management. 22(2). pp.107-132.
Wang, J., Zhao, L. and Huchzermeier, A., 2021. Operations‐finance interface in risk
management: Research evolution and opportunities. Production and Operations
Management. 30(2). pp.355-389.
Online
Risk Assessment Matrix. 2022. [Online]. Available through: <https://www.innovationcanvas.ktn-
uk.org/resources/ktn-template-for-a-risk-assessment-matrix>
The 4Ts of risk management. 2022. [Online]. Available through:
<https://info.pxpfinancial.com/blog/the-4ts-of-risk-management#:~:text=A%20good
%20way%20to%20summarise,%2C%20terminate%2C%20treat%20and%20transfer.>
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