Corporate Compliance to Risk Management Research Paper

Corporate deference to Risk Management - Research Paper ExampleThe framework proposed by COSO helps companies to develop a no-hit and effective plan which meets the requirements and chance areas stipulated by COSO. The bigger the risk is, the greater is the prospect for gain-and for loss. Risk wariness plays an important role for a Pre-Paid Phone Cards company entirelyowing management to predict and foresee accomplishable dangers and solutions.Strategic objectives of the risk management plan are to cover all areas of Pre-Paid Phone Cards profit and reduce risk situations and their negative impact on the company. Operations objective is to recognize that when a working class is being done for the first time, the risk of not achieving budget, schedule, or specification targets is substantial. Also, the nature of new engine room is that its development faces more than the usual levels of uncertainty. Reporting objective is to meet the established procedure and report all risk s atiations. Compliance objective is to respond effectively to rules and regulations, financial reposting and corporate laws (Broder, 1999).Identify risk. Financial incision will routinely scan the organizations internal and external environment to surface risk events that might stir its operations and well-being. Through this process, they develop a good sense of the bad things they might encounter in projects and operations. Examine risk impacts, both qualitative and quantitative. After financial officers develop a sense of the risk events they might encounter in Step 2, systematically determine the consequences associated with their occurrence. Think through hard-to-measure consequences by heart and soul of qualitative analysis. Develop risk-handling strategies Now that financial officers know what risk events they might encounter (Step 2) and the consequences associated with them (Step 3), develop strategies to patronage with them. Monitor and control risks. As projects and op erations are underway, financial officers need to monitor the organizations disk situation to see if untoward events have arisen that need to be handled. If the monitoring effort identifies problems in the process, then locomote should be taken to control them.