Management in organisations

Management in organisations

Question one

Staffing numbers

The risk management team will face the challenge of meeting the different requirements of staffing numbers. Becoming short from the number required to execute the programs and provisions of the group would lead to the final collapse of the team.

Lack of authority

There was little leadership experienced from the team intended to make critical decisions on consultancy and supporting the implementation of ERM programs. It shows that low levels of analysts’ experts ensure that there is no continuity of businesses, thus leading to slow business growth.

Resistance to Change

In many cases, resistance to change of ERM based on the intent of the organization to use the available results and willingness to invest in the process of risk management. The oil companies use the available results quarterly in the year-end planning, and the companies are sophisticated together in a strategic method of planning. The longer-term solutions are applied in the eventual risk management, where visibility approach is consistent with the objectives of the program.

Question 2

IT

The success of ERM is seen when the management tends to borrow specific ideas from the top. Management is supposed to understand the benefits of risk management and should be seen as the only way through which support of the process can be done. In some organizations such as MECO, having support from the top is usually considered to be vital. Therefore, the organization should have a specific framework that is brought forward by the IT department to support the work of the CEO, thus leading to high chances of success.

Question 3

The board of directors will be confident with the information presented about risk assessment due to the awareness and relationship building of the risk management team that has managed to incorporate risk management initiatives into operational excellence. The implementation of the key enablers will be the source of excellence, thus making the board of directors to be reliant on the information presented. It also takes into consideration the significant initiatives of requiring a large number of consultants to come through operational excellence in the implementation of the recommendations of the team.

However, previously, the risk management team was seen as a team that has self-serving provisions and always tries to force new processes within an organization. The board of directors would prefer operation excellence because they would be able to support the organization when coming to the need for implementing the requirements of the superiority of any organization.

Question 4

Lack of Enough Staff

Having enough staff would provide the required roadmap towards implementing the risk management successfully through the organization. Having enough staffing provides clear and practical requirements for the progression and needs of the organization that is supposed to be followed.

Leadership

Lack of authority was one of the problems that the data collecting team faced. The absence of the required power from the group led to inadequate measures and privileges of supporting ERM work.

Question 5

1. Economic slowdown
2. Environmental risk
3. Business interruption
4. Physical damage
5. Energy policies
6. Cost containment
7. Price volatility
8. Climate change and carbon pricing
9. Ethical misconducts and noncompliance
10. Liquidity, financial capacity, and financial exposure

Important risks

Cost containment

The cost of energy across the globe should be addressed to avoid miscellaneous costs that impact the business and hinder the process of meeting the requirements of oil production.

Environmental risk

Having regulations that govern the production of energy ensures that oil production and other data-collection processes are easily met. It gives the provision of ensuring that the relevant authorities address challenges faced environmentally.

Energy policies

There should be energy policies made to address the production of energy across the globe. Without effective systems, it would be difficult to contain the normal output and monitor the production criteria of various regions.