Organizational Risks & Mitigation Methods Essay Example for Free

Organizational Risks Mitigation Methods EssayAs per our discussion last week Ive prepared this memo that outlines the risks that CWTI faces and methods of mitigation for those risks. The goal of this reading is to have a starting point for establishing a risk management process within CWTI. Below Ive identified risks and provided suggested methods of mitigation for each. Id like to point out that while most of these risks have more than one potential mitigation method, I chose to present the method I recall would be most successful for CWTI. 1.)Risk of fluctuation in foreign exchange rates USD receivablesMitigate using control method ie. forward contracts, hedging and so forth2.)Risk of fluctuation in interest rates USD loanMitigate using control method ie. forward contracts, hedging etc.3.)Risk of supply shortage/ retard due to truck breakdownsMitigate using variegation ie. Have alternative options of transportation readily available4.)Risk of losing major customerMitigate u sing diversification ie. Try to gain other customers in need of tonicity5.)Risk of losing timber licensesMitigate using control technique ie. Establish strong internal controls regarding the urgency to clear and replant and ensure to measure controls. 6.)Risk of non- conformation with national stock exchange requirements Mitigate using control technique ie. Establish strong internal controls regarding compliance requirements for stock exchange.7.)Risk of inventory shrinkage due to theft, damageMitigate using sharing/transferring technique ie. Purchase insurance for buildup of inventory8.)Risk of supply delay if lumbermill equipment goes down, staff turnover/lack of skilled staff Mitigate using diversification technique ie. Have alternative options of production in the event every of these occur9.)Risk of delay/damage/lost shipment to overseas marketMitigate using sharing/transferring technique ie. Purchase additional insurance that would cover song this10.) Risk of timber market/ supply what if something happens to forest? Fire, bug infestation Mitigate using diversification ie. Find other supplies of timber11.) Risk of written report environmental groups if CWTI doesnt live up to the clear/replanting requirement Mitigate using control ie. Establish strong internal controls to ensure all clearing/replanting requirements are being fulfilled.12.) Risk of not meeting financial obligations due to delayed/infrequent receivables CWTI operates year round but majority of payment barely gets received around December January (based on 60/90 day terms) Mitigate using diversification ie. Find more new customers that require timber throughout the year to balance the cash flow.We can further discuss other mitigation methods should you please. I look forward to your feedback.