Let’s revisit the FIRM Risk Scorecard this week. Review the elements and examples of dependencies on table format

DMM333 Firm Risk Scorecard for Apple Inc Discussion Board Questions

Let’s revisit the FIRM Risk Scorecard this week. Review the elements and examples of dependencies on table format. These tables are used to calculate a Riskiness Index. Using the scoring grid briefly describe the type and purpose of an organization (you may select the one you are associated with or another you are familiar with – ex: ABC Dialysis Unit, 500 active patients, 1500 annual patient treatments, located in a lower socioeconomic area of an urban environment). Using the format on table 17.2 Pages 158, 159,160 assign a score to each of the components (Financial, Infrastructure, Repetitional, and Marketplace. Report your total “riskiness index” number for each component. Briefly discuss what you might need to do to mitigate the component with the highest score.

 

700 words APA style

 

 

 

Table 17.2 Riskiness index

 

Allocate a score of between 0 and 5 to each component of the generic example of the

 

FIRM risk scorecard to determine the level of risk within the organization, project,

 

operation or location being evaluated.

 

Financial component of the FIRM Risk Scorecard

 

Index Description Score

 

1.1 Lack of availability (or unacceptable cost) of adequate funds to fulfi l

 

the strategic plans

 

1.2 Insufficiently robust procedures for correct allocation of funds for

 

strategic investment

 

1.3 Inadequate internal fi nancial control environment to prevent fraud

 

and control credit risks

 

1.4 Inadequate funds to meet historical liabilities (including pensions)

 

and meet future anticipated liabilities

 

TOTAL for the fi nancial component

 

Infrastructure component of the FIRM Risk Scorecard

 

Index Description Score

 

2.1 Inadequate senior management structure to support organization

 

and embed ‘risk-aware culture’

 

2.2 Insufficient people resources, skills and availability, including

 

concerns about intellectual property

 

2.3 Inadequate physical assets to support the operational and strategic

 

aims of the organization

 

2.4 Information technology (IT) infrastructure has insuffi cient resilience

 

and/or data protection

 

2.5 Business continuity plans are not suffi ciently robust to ensure

 

continuation of organization after major loss

 

2.6 Product delivery, transport arrangements and/or communications

 

infrastructure unreliable

 

TOTAL for the infrastructure component

 

 Reputational component of the FIRM Risk Scorecard

 

Index Description Score

 

3.1 Poor public perception of the industry sector and/or potential for

 

damage to the brands of the organization

 

3.2 Insufficient attention to ethics/corporate social responsibility/social

 

environmental and ethical standards

 

3.3 Poor governance standards and/or sector is highly regulated with

high compliance expectations

 

3.4 Concerns over quality of products or services and/or after sales

 

service standards

 

TOTAL for the reputational component

 

Marketplace component of the FIRM Risk Scorecard

 

Index Description Score

 

4.1 Insufficient revenue generation in the marketplace or inadequate

 

return on investment achieved

 

4.2 Highly competitive marketplace with aggressive competitors and

 

high customer expectations

 

4.3 Lack of economic stability, including exposure to interest rate

 

fl uctuations and foreign exchange rates

 

4.4 Marketplace requires constant innovation and/or product

 

technology is rapidly developing

 

4.5 Supply chain is complex and lacks competition and/or raw materials

 

costs are volatile

 

4.6 Organization is exposed to potential for international disruption

 

because of political risks, war, terrorism, crime or pandemic

 

TOTAL for the marketplace component

 

Score Description of the level of risk Score Description of the level of risk

 

0 No risk 3 Medium risk

 

1 Little risk 4 High risk

2 Some risk 5 Extreme risk