How Risky is Your Company

SYNDICATE 2

SIRAD HANDITO (29114730)

RADEN INDRA ADIKA (29114810)

KINANTY (29114770)

IEFTY RINJAYUNI NIPPARCHI (29114792)

FRANS JOFLIN PANGGABEAN (29114766)

ADITYA AISAR PUTRA (29114920)

PROFIT

GROWTH

UNBOUNDED OPTIMISM

MAKE EXECUTIVES IDENTIFY THEIR LEVEL OF INTERNAL RISK EXPOSURE

MAKE EXECUTIVES NERV NERVOUS OUS

Managers can ask people at different levels and indifferent 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 months ago

DUE TO GROWTH

Types of internal pressures:

DUE TO CULTURE

DUE TO INFORMATION MANAGEMENT

PRESSURE FOR PERFORMANCE

Are the aggresive stretch goals set from the top down with little or no input by subordinates?

RATE OF EXPANSION

Are operations expanding faster than our capacity to invest in more people and technology?

If companies are expanding at a faster rate than the knowledge of their employees, it can lead to additional risks 

IN EXPERIENCE OF KEY EMPLOYEES

Are the people inexperienced at what they do?

This can be a problem in times of growth, when key managers are employed without sufficient training 

In this pressure points of mix culture, we can calculate the points based on these category:

Transaction complexity and velocity

Diagnostic performance measures

Decentralized decision making

Transaction complexity and velocity

Success can increase the intensity of risk

One signal that a high score is called for is a felling of frustation

Decentralized decision making

When companies expand quickly, local managers are often given a great deal of autonomy to make decisions

Diagnostic performance measures

Have the senior managers communicated the core values of the business in a way that people understand and embrace?

Managers must do more and go through the motions of writing a mission statement, visible action, and prove the living document 

Have managers in organization clearly identified the specific action and behaviors that are off-limit?

Managers must determine what behaviors and actions could damage the business reputation and declare the actions categorically off-limits 

Are diagnostic control systems adequate at monitoring critical performance variables?

Managers need to determine which performance variables matter most in  present circumstances and the design ways to ensure the key managers and choose to focus diagnostic measures on operations, critical balance sheet assets and the competitive environtment 

Are your control systems interactive and designed to stimulate learning?

The systems that force managers to engage in conversations about strategic uncertainties. Any number of systems can be used interactively. Using systems can continually assess opportunities and threats 

Are you paying enough for traditional internal controls? Many organizations/companies was no longer use traditional internal controls  The main reasons: To refocused and streamlined business, that make companies more competitive To remove the redundancy and middle management oversight

Won’t decrease an organization’s risk

The risk exposure calculator

A suggestion where risk is growing and an insight that managers can take the steps to protect organization’s success

THANK YOU FOR YOUR ATTENTION