The dire need for Emergency risk management (ERM) assessment in Walmart comes in the wake of increased risks in the company such as: Ineffective risk governance at senior management level, ineffective risk managers and Ineffective risk policies. Regardless of the sound and concise corporate objectives such as financial strength and customer service, ERM assessment is still recommended to seal unseen loopholes in the companys prospects (Anderson, 112). In the actualization of the EMR, the assessment focused on measurable elements such as the likelihood rating that focused on the measurement or evaluation of the likelihood of a risk occurrence in a given period of years. With regard to Walmarts risk analysis results; there were ranges of ratings from 1-5 with which ethics violation scoring the least rating whereas industrial action had the highest rating (Fedosova, 100). It means that the higher the score the higher the likelihood of the risk coming into play.
On impact rating, the classification was broadened from very high impact with a rating of five to insignificant with a rating of 1. The risk analysis undertaken with regard to the company, Walmarts economic downturn had the highest rating of five to actually depict that in case of the risk, it can present serious impact that would affect the entire organization (Walmart Case, 5). Industrial actions presented the least impacts with a score of 3. It portrayed that it bore the least impact on the company in the face of the risk happening.
The risk analysis in place tends to give room for its treatment that first classifies risk from its owners to the measures in risk monitoring. The treatment recommends internal actions, as the studies provide vulnerability of the company to internal risks. The treatments mostly range from financial engagements to upholding effective communication measures to reduce risks of companys failure (Brea-Solis, 28). The treatments also move further to incorporate mitigation measures that are simply classified as either from financial resources and its results, astounding benefits and monitoring periods as whether monthly, annually or quarterly. Mitigation phase also reviews the corporate objectives as either high or low in each of the risk sources.
In conclusion, the whole essence of EMR becomes effective with the early phase of analysis of the risk sources in a given company. The rationale would, therefore, not only help avert various crises but also ease risk assessment strategies to help the company acknowledge its stand in the business field.
Andersen, Torben J. "Combining Central Planning and Decentralization to Enhance Effective Risk Management Outcomes". Risk Management 12.2 (2010): 101-115. Web.
Fedosova, R. N. "ASSESSMENT OF RISK FACTORS AFFECTING ON THE STABILITY OF THE ORGANIZATION". jour 6 (2015): 100. Web.Brea-Solis, Humberto, Ramon Casadesus-Masanell, and Emili Grifell-Tatje. "Business Model Evaluation: Quantifying Walmart's Sources Of Advantage". Strategic Entrepreneurship Journal 9.1 (2014): 12-33. Web.
"Walmart Case May Test Employer's Right To Monitor Employees' Social Media Accounts". Management Report for Nonunion Organizations 39.3 (2016): 4-6. Web.
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