Getting Started on Risk Management



Risk Register for Sustainability Risks

Risk

Description

Owner

Source

Likelihood of Occurrence*

Severity of Impact*

Controllability*

Compliance Risks

Change in the policy of Carbon Foot prints. The increased complexity of the carbon foot prints require an enhanced level of compliance and thus without the required level of compliance, it would present a significant compliance risk.

Administration Manager

International Sustainability Forum

High

Medium

Medium

Volatile Energy Prices

Change in the prices in energy sector. The increased fluctuations in the energy prices represent huge degree of uncertainty and thus Mergeant would have to deal with the uncertain trend of changing energy prices.

Manager Finance

International Market

Medium

High

Low

Product Substitution

Consumers may switch to other sustainable products. With similar features of the substitute products, consumers are increasingly switching to other products which is a significant de motivator for Mergeant. The overall business of Mergeant is getting decreased with the increased reliance of customers towards the purchase of substitute products.

Product and CSR manager

Company

Low

High

High

Reputational Crisis

Company reputation may go down because of irresponsible attitude. The lack of mature and professional decisions on the part of the top management have significantly hampered the reputation of the organization and as a result there is a need to successfully monitor the actions of the top level of management.

CEO

Company

Low

High

High

Competitive Risk

Other companies may be able to adapt sustainable technology earlier. Other companies have been hesitant to adopt the latest technology and thus our organization is also hesitant in using the latest technology.

Marketing Manager

Business Intelligence

High

Low

Medium

New Regulations

New regulations in sustainability polices. The new regulations in sustainability policies have increased the complexities as well as the restrictions on the sustainable operations.

Operations Manager

Regulatory Body

High

High

Low

Supply Chain Crisis

Environmental problems created at suppliers end. Since the suppliers are hampered by increased environmental concerns, there is a need for Mergeant to look at alleviating their environmental concerns since the suppliers form a crux part of their organizational success.

Procurement Manager

Supplier

Low

Low

High

Transaction Failure

Company's merger acquisition failed due to environmental liabilities. With increased environmental liabilities, there has been a significant transaction failure and as a result the aim of the company to have a successful merger has been affected to a great extent.

Board of Directors

Company/Compliance

Low

High

Low

A. Evaluation of Risk Descriptions and Details

Risk management

Risk management is the indication, appraisal, and prioritization of risks accompanied by facilitated and efficient provision of assets to minimize, screen, and control the likelihood or effect of deplorable events or to expand the acknowledgement of opportunities. Risks can range from doubt in monetary markets, venture flops (at any stage in configuration, infrastructure, processing, or sustainment life-cycles), lawful liabilities, credit hazard, mischances, characteristic reasons and fiascos and additionally consider assault from an enemy, or occasions of indeterminate or capricious root-source.

Financial Risk Management

Financial risk management is the act of making investment worth in a firm by utilizing monetary instruments to administer presentation to risk, especially credit risk and market risk. Different sorts incorporate Foreign trade, Shape, Volatility, Sector, Liquidity, Inflation risks, and so forth. Comparable to general risk management, financial risk management presupposes recognizing its sources, measuring it, and plans to address ...