Assignment - ERM at Mars, Incorporated: ERM for Strategy and Operations
ABC Organization is considering implementing an Enterprise Risk Management program. The board at your organization where you are the risk manager has asked you to review this case study and present information about the case study and your findings related to Risk Assessment Methodology.
The UK housing market is going through a difficult period. The number of households is expanding by 250,000 per year, but the rate of house building is only half of what it needs to be. There is a tradition of home ownership, but the banking sector has recently not been able (or willing?) to fund further growth, and home ownership has fallen to its lowest level for two decades. Young working people who would previously have taken out a mortgage and bought their houses are now turning to renting. There is an urgent need to provide ordinary working people with good quality homes; the private rental market provides homes of mainly low quality, and market rents are increasing to unaffordable levels. Read the Housing Association Case Study of ERM in a Changing Marketplace, prepare your responses to the following questions in a presentation to be made to your board of directors.
1. Given the fact that the association is a charity, with risks related both to its financial and charitable aims and any profits made being reinvested to support its charitable aims,, what do you assess as the biggest risks facing the association and what is your assessment of these risks? Note that "for-profit" activities such as building houses for sale can also contribute to an association's aims (e.g., to provide affordable housing within its chosen area of operation).
2. Considering the list of products in the "Background" section, how do you rate their potential risks and returns for the association, again in relation to its charitable aims and viability constraints and in the context of the association's operating environment?
3. In the light of the association's financial position and its charitable aims, how high should be the risk appetite of the association? Is one of the generic strategies listed in the "Sector Issues" section appropriate for the association, and if not, then what should the association's strategy be?
4. Can you suggest product growth targets and appropriate risk limits that will enable the association to develop safely and dynamically in the short/medium term? The association data was drawn in 2013 from current real cases, and it may help you to investigate the "actual" cases and their contexts.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.