Risk Management Case Study Example | Topics and Well Written Essays - 1000 words

Risk Management - Case Study ExampleThe first concern playing area is the president and founder decision to hand shareholding to family members. This may be seen as a measure to safeguard the alliances interests and those of the main shareholders, it also poses evidential threat as it limits the companys access to additional capital, the assumption here being that any amounts that the company may have at the era are already committed to improving the business. Another eminent risk is the exposure of the companys assets as presented in the case, the companys keep down assets are valued at 52.6 jillion dollars. In case these assets are destroyed by any type of occurrence, it would cost the company about $73.5 million to replace them. It is definite that such loss would also translate to a loss of significant information stored in the equipment. Other costs that the company should contract is through disruption - in any case, that there is such an eventuality the companys operati ons will definitely be disrupted. The entire dot of disruption represents a significant loss of company tax revenue. Yet another major point of concern is the companys revenue. The case indicates that the companys revenue has been on the rise for the past two years and dipped in the third year by a significant amount - 15 million. A quarter of this revenue is generated by a single employee, which implies that the firm is overly reliant on a single or a a few(prenominal) individuals. This implies redundancy as well as inefficiency which are significant risks. The greatest risk in this case is the fact that if this individual leaves the company, then this hugely affects the companys revenue stream (Hamilton, 2004). This will definitely have a spiral effect as the company operations rely on the revenue generated by its activities. The last significant threat to the company is loss of market share. The case indicates that the firm