The paper "Enterprise Risk Management" is a wonderful example of an assignment on management. MPM Contractors Pty Ltd is a company based in Brisbane, Queensland undertaking electrical engineering contracts for industrial and commercial building works. Some of the activities include controls for pump stations, switchboards, and power reticulation. As a family-run business, the company has had to make major changes to its organizational structure and corporate strategies to remain competitive. Apart from selecting and recruiting a new management board, the company has made several changes in the employee structure.
More importantly, the company intends to maintain its reputation and operational performance in a diversified work environment. The business has decided to develop a risk management manual, risk policy, and a risk implementation plan to guide this process. The CEO requires an Enterprise Risk Management (ERM) framework and manual documented for the company. MPM Contractors Pty Ltd is adopting the ERM framework to mitigate risky events throughout its operations and to ensure high efficiency in the operational processes. This manual is a framework that identifies and prioritizes risks which will lead to better stewardship, resource allocation, strategic decision making, and governance. 1.1 Outline and design of ERM framework Enterprise Risk Management (ERM) in engineering allows risk management decisions to be made to maximize shareholder value, manage risks and uncertainties and connect to the total value.
This section takes into consideration how AS/NZS ISO 31000:2009 is applied to the electrical engineering company. The framework that highlights risks and uncertainties is expected to proactive and prevention-oriented. Being comprehensive and robust in focus, AS/NZS ISO 31000:2009 frameworks will be applied within the context of strategy and guidance to the organization.
The guiding principles are; Advancing safety and trust in engineering Managing uncertainties Maximizing value creation and protection Encouraging accountability between disciplines Optimizing organizational readiness The specific objectives of ERM are not limited to the following; To promote a positive culture within the organization that impacts success and readiness To utilize metrics or data to prioritize risks To align risk strategy and appetite in mitigating and controlling adverse risk events
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