5. Other risks: These would be natural disasters such as floods, and others dependent on the scale of the industry. Business risks can also be influenced by two major risks – Internal risks the risks that arise from within the organisation, and external those that
These can come from hugely varied sources, from the weather to a war on the other side of the world. The economy and government attempts to control it are more obvious influences on business activities but how each business will be affected are vastly different. During this unit you will investigate the differences in businesses; how they are run organised and influenced. Why certain businesses are organised in different ways and which individuals and organisations are interested in the progress of different businesses. By the end of this unit you should understand: • The range of different businesses and their ownership.
Explain why change happens in a business environment. You should include at least three reasons in your answer. There are a number of reasons that change happens in a business environment. Some changes can be related to external pressures (reactive), while others are linked to internal demands (proactive). A reason for change could be in relation to a change in the law which is enforced by the government.
The process of planning for a possible disaster starts with the planning committee coming up with a risk analysis. The impact of several disaster scenarios including the impact and consequences of the different scenarios needs to be analyzed to determine the impact to the business. To keep Sunica Music and Movie up and running during a disaster the critical facets of the business need to be functional regardless of the disaster. The following departments are detrimental to the continued success of the business during a disaster: key functional operations, key personal, vital records, processing systems, vital records, information and documentation, and policies and procedures. To determine which departments and organizations need to be back online first to sustain to smallest amount of impact, process and operations need to be analyzed to find what the time frame is that each area of the business can function without each critical system.
These pro and cons will have to be measured by risk and how it will effect the company. After the weight of the risk is measured the company will then need to decide on what strategy will be most beneficial and less risky. 1. Analyze the ethical dilemma faced by Antonio. In this case study Antonio work in the Empress Luxury Lines and he faced dilemma regarding the ethic in the work place.
Its business is heavily influenced by regulation and statutory compliance; many of its risks are outside its own control and have a significant effect the Groups profitability and Shareholder value. Unforeseen and uncontrollable events are key elements in Veolia’s strategic considerations, but at the same time, it must balance its risk appetite with its drive for maintaining and gaining market share. Veolia operates in highly regulated and often exposed environments, and is heavily influenced by external factors (i.e. political, economic, social, technological, legal and environmental). Its governance and risk strategies are based on its social, environmental and ethical responsibilities, which are tied into its overall corporate strategy
Importantly, by showing the impact of the changing industry regulation, the case provides an example of how an external environmental factor can impact a company’s strategy to achieve competitive advantage and ultimately impact an auditor's assessment of inherent and fraud risk. We
DRP vs. BCP The terms Business Continuity Plan (BCP) and Disaster recovery Plan (DRP) are sometimes mistaken for each other, but they each have very different meanings. A BCP will pinpoint contingencies for continuing business should a disaster occur. The disaster could include but is not limited to natural disasters that cause an interruption in the business’ operation, information or security breach, communications failure, catastrophic hardware or software failures, fire, water damage, or complete power failure. A Business Continuity Plan will thereby allow a business to note key operational parameters to coordinate an encompassing Disaster Recovery Plan. The DRP would not be a complete document without the BCP.
(1) Earning Management According to Ronsner (2003), earning management is defined as a management technique that can let managers achieve their outcomes by influencing the financial statements. These actions will mislead some stakeholders’ opinion about the company’s underlying economic performance; Also, earning management can influence the contractual outcomes which come from accounting numbers (Healy and Whalen, 1999). In Worldcom case, CFO Sullivan use accounting entries to reach targeted performance, this improper earning management tried to conceal the real economic value and performance of Woldcom from the stakeholders who will use the financial statements. (2) Motivations of earning management The reason of earning management is to affect financial statements’ users’ understanding about the company’s economic performance or influence the outcomes which depend on the reported accounting numbers (Lin, Radhakrishnan & Su, 2006) Firstly, one of the most important motivations of earning management is Managers’ career concerns. Because earning management allows managers to reach their desired outcomes by influencing firm’s financial statements.
Strategic Controls and Contingency Plans Strategic Controls and Contingency Plans Strategic control is involved with tracking the strategy during implementation, detecting any problems or possible problem areas, and making any necessary adjustments. The implementation of a strategy is long-termed and consists of a series of steps and activities (Adams, 2013). A control point within a scheduled project are key review points and allow the project manager to make important decisions regarding the project. Contingency plans augment strategic controls and afford a business an alternative plan to keep operating if an unexpected event should occur that would interfere with business activities. Contingency plans typically are developed during the analysis of the strengths and weaknesses of a proposed business strategy (Adams, 2013).