Verizon Communication Case Study

1432 Words3 Pages
bulb-icon

Recommended: Enterprise risk management essay

Rashida Hart Professor Rothman March 19, 2014 Enterprise Risk Management Verizon Communications, Inc. In today's volatile environment, companies have to be prepared to manage their portfolio risk in order to remain sustainable and viable in today''s economy. Risk are inherent and can arise at any moment. To avoid or limit risk, a company has to have an effective Enterprise Risk Management (ERM) team or plan in effect, lead by an effective Chief Risk Officer (CRO), such a myself. As CRO, my overall purpose is to provide leadership and direction for an effective enterprise risk management framework of risk for the organization, so that the company can increase customer churn and revenues. Verizon Communications Inc., is a Dow 3 company, with a diverse workforce of over 180,000 employees around the world. Verizon Communications, operates under two business segments; The wireless sector, which provides voice, data, and equipment along with other services globally. The wireline sector is the other half of the business, which provides voice, internet access, video, data, long distance and other value added services globally as well. At Verizon, we believe that identifying and prioritizing risk is an imperative practice that all enterprise organizations should have. We have identified six key factors and prioritized them in order of highest risk. Market risk is the first risk factor that we identified as affecting the company's framework. There are three types of market risk, including trading risk, asset/liability mismatch, and liquid risk. Verizon is exposed to various market risk, which include interest rate changes, foreign currency, exchange rate fluctuations, changes in investment, equity and commodity prices and cha... ... middle of paper ... ...long term cash flow. Credit risk, which is attributed to defaulted obligations by the counter party. To reduce the risk of liabilities, we have to alter our strategy to one that is liability driven. The second important risk factor would be technological, being that the entire network relies upon updated and efficient technology to stay ahead of the competition and provide new and improved services that our customers need. The third risk factor would be the financial risk factor, which currently has no significant exposure to foreign currency fluctuations. When done correctly, Enterprise Risk Management, can be a transformative tool to help any organization improve their business performance. Managers and front line employees need to develop the ability to identify opportunities, roadblocks, or hazards that can destroy the organizations strategic goals.

Show More
Related

  • Swot Analysis Of Verizon

    643 Words  | 2 Pages

    Verizon Communications Inc. is one of the leaders in providing communication services around the world. Its primary offerings are wireless, wireline, and broadband communication resources to meet residential, business, and government needs. As a leader in its industry, how can Verizon continue to grow its business? What strengths, weaknesses, opportunities and threats impact the success of Verizon now and in the future?

    Read More

  • Walmart Macroeconomic Factors

    1240 Words  | 3 Pages

    Risk may be internal or external and in a variety of forms. An external risk for example may be the unemployment rate in that if people are unemployed they do not have disposable cash for desires. Only necessities are purchased and for many cellular service is not a necessity and cannot be afforded without adequate income. An internal risk to the company may be a divisive organizational structure. If various departments in the organization are not in agreement and backing of the new product, this will create internal tension and potentially hinder the success of the product or in this case the

    Read More

  • The Walt Disney Company Analysis

    889 Words  | 2 Pages

    Risk management is a way for firms to grow and create value. Enterprise risk management programs give organizations the tools they need to make quicker decisions with confidence. Steven Hunt, vice president of research at Forrester Research states, “It’s like driving a car: You can only go fast if you know you have good brakes.” (Buchanan, 2004) “As organizations develop their risk management processes, they can use those processes to consider the opportunity side of risk and use those processes to both protect and create value.” (Frigo & Anderson, 2014) The following will be an overview of The Walt Disney Company’s risk management practices.

    Read More

  • Risk and Fire Management

    1123 Words  | 3 Pages

    Risks management refers to basically identifying possible threats that may hinder achievement of organizational objectives, and taking measures to deal with such threats in advance. Those measures aim at reducing the chances of the risk occurring or being ready to cater for consequences when the risk occurs. Risks present an element of uncertainty to the exposed unit Ashford (2008).

    Read More

  • Development of Corporate Governance in Malaysia

    1048 Words  | 3 Pages

    ...ce to Enterprise Risk Management (ERM) and Value Creation. 3rd Asia-Pacific Business Research Conference, (pp. 1-10). Kuala Lumpur.

    Read More

  • Risk Management Roles of Corporate Leadership

    1089 Words  | 3 Pages

    Unfortunately, businesses fail, profitability reduces, organization does not grow, and any number of other outcomes. Sadly, many ERM assessments focus on risks related to competitive strategy or the customer experience, but there are other functions, such as sourcing key components in risky regions of the world or unplanned catastrophic events that can be just as damaging to the organization (Driscoll, 2013). In fact, risk sources like organizational readiness, network services launch, asset conditions, environmental contamination, and hazardous operating environment are just as detrimental to the

    Read More

  • Employee value proposition at NTPC

    2186 Words  | 5 Pages

    The major risk the company is facing in today’s business scenario has been identified as:

    Read More

  • Commercial Risk Management Case Study

    1016 Words  | 3 Pages

    Risk can defined as “the effect of uncertainty on objectives”. Every time an organisation enters into a contract it is inevitably facing commercial risks. Commercial risk management is the identification and assessment and minimising of uncertainty to control the impact of negative events to assure, as far as possible, that uncertainty does not affect the business objectives. Commercial risk can be managed in many ways including the establishment of policies & procedure, management of change, peer review, planning, insurance and the contractual transfer of risk. Contractual transfer of risk is using the contract to move risk, which otherwise would be one’s own to others, usually the other parties to the contract. Who should carry what risks

    Read More

  • Bank Risk Management: Literature Review On Bank Risk Management

    1375 Words  | 3 Pages

    Risk management is the process of defining, assessing and controlling threats to a company's capital and profits. These threats, or risks, could root from a wide diversity of sources, including financial indefinitiness, legal responsibilities, strategic management wrongs, accidents and natural disasters. As a result, a risk management plan increasingly includes companies' processes for identifying and controlling threats to its digital assets, including proprietary corporate data, a customer's personally identifiable information and intellectual property.

    Read More

  • Risk Of A Risk Response Plan

    980 Words  | 2 Pages

    Having seen the frustration that come with poor risk management, a company that is growing steadily, requires a project risk management team who will conduct, identify, analyze, and control risk on a project in order to ensure project goal at the end.

    Read More

  • Risk Management: A Necessity Not a Choice

    1870 Words  | 4 Pages

    116). A company’s risk management policy can also be seen as a form of governance (p. 116). Campbell notes that risk management can be seen as a form of governance because risk management assists in giving decision-makers the information needed to allow them to assign the necessary means that best balances the incentives and risks of a questionable future (p. 116). According to Minculete and Olar (2014), risk signifies the concern associated with the existence of an event that, when it takes place it changes the achievement of the company’s objectives (p. 102). Therefore, risk is not something that is guaranteed, however when associated with the company objective, which could have an adverse effect (p.

    Read More

  • International Business

    807 Words  | 2 Pages

    As human beings, we encounter risk every day of our lives. As a manager, risk becomes even more importan...

    Read More

  • Computer Company Business Plan

    1537 Words  | 4 Pages

    The company recognizes that it is subject to both market and industry risks. We believe our risks are as follows, and we are addressing each as indicated.

    Read More

  • Disadvantages Of Risk Management

    1823 Words  | 4 Pages

    When you first think of risk management you think of having control, problems that may occur, or problems you can prevent from occurring. Risk management is a popular term and is very important when planning for a business. As an accountant, you always want to be very aware and alert. Given the economic landscape of the past years, a company’s business model is challenged constantly by competitors and events that could give rise to substantial risks (Byrnes, Williams, Kamat, & Gopalakrishnan, 2012). Not being aware of the business and risks that may take action can be a major loss for an organization. Most organizations have begun to realize how important it is to a risk management program especially with all the new technology and high turnovers

    Read More

  • Enterprise Risk Management: The Implications Of Enterprise Risk Management

    2490 Words  | 5 Pages

    Enterprise risk management is an ongoing process of risk management which should be implemented strategically at every level of a company. It ensures that all risks are identified and managed according to the company’s risk appetite (Committee of Sponsoring Organizations of the Treadway Commission, 2015). Enterprise risk management is therefore an integrated framework, combing the risk management of a range of business activities (Liebenburg & Hoyt, The Determinants of Enterprise Risk Management: Evidence From The Appointment of Chief Risk Officers, 2003, Volume 6, Issue 1).

    Read More

More about Verizon Communication Case Study

Open Document