The Portfolio of Current Issues in Risk Management Assignment

The Portfolio of Current Issues in Risk Management - Assignment Example Warren Buffett is a respected billionaire investor in the United States and major shareholder of Berkshire Hathaway, a multinational conglomerate financials and investment company. According to Buffett, â€Å"it takes 20 years to build a positive reputation and only five minutes to destroy it† (Rushe 2011, p.1). The article describes a black eye incident that has potentially damaged the credibility and reputation of Berkshire Hathaway amid a resignation scandal occurring on the back of questionable securities sales by an insider manager. The article insinuates that conversations between Buffett and David Sokol, an executive leader, provided insider trading knowledge to Sokol, leading to public and governmental scrutiny and investigation. Adding more enquiry to this situation is the fact that Sokol suddenly resigned from his position, which could indicate there is something to hide in the securities transactions in question. Personal Commentary Why is this relevant for risk man agement and ensuring reputational risk management for the organisation? For some organisations, the brand and its reputation in key target markets is one of the most fundamental competitive advantages sustained by the organisation. Especially true in saturated markets where public and private investments are traded in highly-publicised media, businesses require a differentiated brand name that is considered credible and adheres to the principles defined by corporate social responsibility. It is only when consumers become attached and loyal to a brand that they will begin expelling personal and social resources to supporting and defending the brand against negative criticism (Aron, Aron and Smollan 1992; Muniz and O’Guinn 2001). The situation involving Berkshire Hathaway reminds the risk management professional to carefully monitor and control the activities of internal staff members. Since this is an organisation that has much scrutiny by a variety of stakeholders and importa nt shareholders, the organisation cannot afford for representatives of the business to damage brand reputation. According to the lectures, the brand reputation of a business should be considered just as paramount as traditional risk management activities. Farris et al. (2010) reminds us that the use of a customer satisfaction metric is a vital tool in monitoring business reputation and securing brand reputation. This article seems to reinforce the importance of showing transparency and accountability as part of corporate social responsibility especially when the internal activities and investment selections of a major holdings company can be observed by a global mass market audience. Under Kantian deontology, the highest good comes from duty. For example, a merchant attempts to build a good reputation simply to ensure profitability. However, this is not a moral good since it does not stem from social duty toward others (Bowie 1999). When assessing risks or establishing a risk evalua tion tool, it is necessary to consider how the stakeholder and customer will view business actions. They will either attribute actions to moral and ethical behaviour or witness trust reduced in the corporate integrity of the business. Corporate social responsibility must be a major factor in setting up a risk management model to keep a positive reputation and avoid public scrutiny. Student’s Name: Review No.: 1 Source of article: Is your culture a risk factor? Business and Society Review 111(3) Author’

Assignment 3 Essay Example | Topics and Well Written Essays - 750 words - 2

Assignment 3 - Essay Example There is a large pool types of contacts to choose from. The lawyer should help you chose the most favourable one for the sale of the toys. Contracts may be sealed, implied, bilateral, void or voidable. Some requires company of legal enforcement whereas some do not; some are in writing while others are oral (Franco 31). In this case, the lawyer will help you chose one that will accompany the international sales. The contract should be flexible for easier handling of the business. The lawyer should choose the best law to govern the contract. The court will apply the law that the parties have chosen provided it is in line with the type of business and that parties have good intentions. There are various laws that govern diverse range of contacts. The lawyer must choose one that favours parties whose businesses are in divergent states .The lawyer will provide professional advice on why u should retain and leave out some aspects in the contract. This will ensure flexibility of the contract and easy comprehension. The good will have to describe and expounded in details. You should discuss about quality and quantity of the Woogles together with how and where distribution would take place (Goldman, Arnold & William 243). Such factors are important to consider because they will ensure efficient flow of the business. This will also help identify the rate of manufacturing which is more effective to ensure constant supply of woggle toys. The quantity and prices here helps in identifying how much the company will make per sale. Now that the buyer will buy 10,000 at a dollar each, it will result to $10,000. The procedures of sending the delivery notes and invoices should be included in the discussion. The attorney should also explain any limitation that may be encountered during shipment and when sending delivery notes and invoices There are various forms and the lawyer should choose the most preferred. These forms are necessary to ensure that the buyer pays in time