How Risky is Your

Company?
CORPORATE RISK MANAGEMENT
SYNDICATE 6
AKHMAD DWI RIYANTO 29116011
GEMMA GRIMALDI 29116223
MUHAMMAD DANIALA SYUHADA 29116059
Background

Growth
Profit

Success ?

Unbounded Make an
Optimism identification Level
of Internal Risk
Exposure

Make
Executive
Nervous
Background

Not all risks are avoided. Most of people agree that

to growth, most companies are willing to take risks.
Most people would argue that risk is part of doing
business, so a good risk calculator could include the
unwanted and unrecognized risks.
It is also not the goal to find one specific number to
pinpoint the risks of a company, but to give hints for
improvement
The Risk Exposure Calculator

Shows the pressure point present in every organization

that lead to increased risk
Allow executive to determine if a companys risk level is in
the safety, caution, or danger zone
The Risk Exposure Calculator

Manager can ask people

at different levels and in
different functions
2 illuminating exercises of
the risk exposure
calculator Managers can calculate
their company's current
risk exposure and then
what it would have been
24 month ago
 The Risk Exposure Calculator

Due to growth
Types of
internal Due to culture
pressures
Due to information management
The Risk Exposure
Calculator
Pressure Point Due to Growth

NO
Low Score
Are the
aggressive
Pressure for stretch goals set
Performance from the top
Pressure for
Performance?
YES
High Score
Pressure Point Due to Growth

Are
NO
operations
Low Score
expanding
faster than
Rate of
our capacity
Expansion
to invest in
more people
and
YES
technology?
High Score
 Pressure Point Due to Growth

NO
Are there any (Low Score) While in time
inexperience rapidity of growth
Inexperience will be a problem
employee at
of Key if the personnel
their
Employee behind the key
responsibility position is
and they do? inexperience
YES employee
(High Score)
Pressure Point Due To Culture

No business can long term survive without the

entrepreneurial risk taking that drives
innovation and creativity
Pressure Point Due to Culture

Pressure points of mix culture, category for calculating the

point are :

Percentage of the
business is based
on new products
Based on information
and services that Based on internal particularly as it
have been competition flows upward
generated by
creative, risk-
taking employees
 Pressure Point Due to Information
Management

Transaction
complexity Success possible to make higher intensity of
and velocity
risk

Diagnostic
performance One signal that a high score is called, rise a
measures felling of frustration

Decentralized
decision Quick expansion of the Company, possibly local
making managers are often given bigger role of autonomy to
make decisions
 Five Questions About Risks

After managers have done everything to control the risks, then

they need to implement the levers of control, which are the
mechanisms that managers can adjust to control risk as a
company pursues its strategy
 Five Questions About Risks

Have the senior

Q managers
communicated
the core values
of the business in
Have managers
in organization
clearly identified
the specific
Are diagnostic
control systems
adequate at
Are your control
systems
interactive and
Are you paying
enough for
monitoring critical designed to traditional
a way that action and
performance stimulate internal controls?
people behaviors that
variables? learning?
understand and are off-limit?
embrace?

Managers need to Many organizations /

A
Managers must Managers must determine which The systems that force companies no longer
do more and go determine what performance variables managers to engage in use traditional internal
behaviors and conversations about
through the matter most in present
strategic uncertainties.
controls, with the
actions could circumstances and the following reasons:
motions of writing design ways to ensure Any number of systems To refocused and
damage the
a mission business reputation
the key managers and can be used streamline business,
statement, visible choose to focus interactively. which make the
and declare the diagnostic measures on Using systems can companies more
action, and actions operations, critical continually assess competitive
prove the living categorically off- balance sheet assets opportunities and To remove redundancy
and the competitive threats and middle
document limits
environment management oversight
A Calculator and a magnifying glass

Magnifying Glass
Executives running successful enterprises need
magnifying glass to search within their organizations
for the risks that may be multiplying.

Risk Exposure Calculator

Wont and, in and of itself, decrease and organization
risk, but it will suggest where risk is growing and how
fast