The J & J. Enterprise Risk Management Framework Essay

The J & J. Enterprise Risk Management Framework Essay

Length: 2090 words (6 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Johnson & Johnson was founded in 1886 by the Johnson brothers. It is an American based pharmaceutical, medical and consumer product manufacturer. Since the 1960’s the company has been based out of New Brunswick, New Jersey. In the United States they are ranked third in being one of the most environmentally conscious companies. The company is run on the principals of, according to Johnson & Johnson (1997) as “Broadly Based in Human Health Care, Managed for the Long Term, Decentralized Approach and Our People and Values” (The J&J Strategic Framework). Enterprise Risk Management is a strategic plan which includes the whole company. It is designed to identify risk or events which could affect the enterprise, which allows them to assess and fix the problem. This paper will go further in depth to explain to you the specific information included in the J & J Enterprise Risk Management Framework. The purpose of the framework according to Johnson & Johnson (1997), “categorizes risk, identifies and manages potential events that may affect the enterprise, accountability for risk management and governance and oversight of risk management activities” (Introduction).

Risk assessment is a process which involves risk analysis and risk evaluation. Risk analysis is when a company identifies a threat, determines the cause and then estimates the impact. Risk evaluation is when risk levels are compared to already established risk criteria. When a company like J&J performs their assessments they are quickly able to identify vulnerability as well as understanding impacts on critical functions. Johnson & Johnson divide their risks and threats into four distinct categories.
The first and most important is compliance risk. Compliance involves: legal, fi...

... middle of paper ... to access internal and external risk. Internal risk arises from human factors. An example would be a strike, started by the people and with the intentions of it benefitting the people. External risk, has more to do with events effected by economics. Second, a proper risk response must be determined. Risk response is crucial in reducing risk and threats throughout a company. Proper planning and taking a course of action must happen. Third, policies and procedures need to be established along with controls, systems and accountability to support response. Fourth, risks must be clearly communicated through all the teams and mitigation plans put in place. A mitigation plan includes developing options and actions to reduce threat. Evaluating the risk process is also included in the plan. And last but not least, the effects of the mitigation plan need to be monitored.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Risks Management Association ( Rma ) Defines Enterprise Risk Management

- The Risk Management Association (RMA) defines Enterprise Risk Management (ERM) as the “capability of an organization to understand, control, and articulate the nature and level of the risks taken in pursuit of a risk adjusted return” (RMA, 2015). RMA’s Enterprise Risk Management framework illustrates that ERM will provide the answers to eight fundamental questions related to risk (see Appendix, Figure 15.13.1). ERM analyzes internal and external uncertainties faced by all areas of the company, avoiding silos....   [tags: Risk management, Risk, Enterprise risk management]

Better Essays
703 words (2 pages)

Essay about Risk Management

- Over the past decade, risk and uncertainty have increasingly become major issues which impact business activities. Many organizations are raising awareness to minimize the adverse consequences by implementing the process of Risk Management Framework which plays a significant role in mitigating almost all categories of risks. According to Ward (2005), the objective of risk management is to enhance a company’s performance. In particular, the importance of the framework is to assist top management in developing a sensible risk management strategy and program....   [tags: Business, Risk, Uncertainty]

Better Essays
2000 words (5.7 pages)

Risk Management in Banking Essay

- Introduction During 2000 BC, the development of banking industry emerged. The exchange of grain or goods between farmers and merchant were termed trading. Bank is financial intermediaries which accepts deposits from general public and organizations and are engaged in lending activities. In other word, banking business is the business of receiving money from the market through deposits and paying or borrowing the fund to the capital market and general public as well. Banks undertake various financial activities such as investment banking, private banking, insurance, consumer finance, corporate banking, foreign exchange trading, community trading, future and options trading, money market trad...   [tags: Risk Management Essays]

Better Essays
1029 words (2.9 pages)

Digital Enterprises Invest Resources For Ensure That Its Governance Framework Suits Its Risk Profile

- “Digital enterprises invest resources to ensure that its governance framework suits its risk profile. The focus is not only on protection but also on detection and timely response” Technology - INFRASTRUCTURE & SERVICES Any system that received online data is subject to attack. Technology advancement has seen growth in number of cybercrimes creating a continuous trade off that often hinges on a balancing act between attacker and defender. Unfortunately, that balance is never static as technology advancements affects both sides....   [tags: Risk management, Risk]

Better Essays
728 words (2.1 pages)

An Evaluation of Information Security and Risk Management Theories Essay

- An abundance of information security and risk management theories are prevalent; however, it can be difficult to identify valid and applicable theories. In the reading to follow, several information security and risk management theories are evaluated. These theories are presented and employed via various frameworks, models, and best practice guidelines. An assessment of sufficient research pertaining to these theories is addressed, along with a consideration of the challenges that arise from a lack of research....   [tags: it security, risk management, nist]

Better Essays
1902 words (5.4 pages)

The Board Of Directors And Senior Management Essay

- The Board of Directors and Senior Management have a fiduciary duty to implement comprehensive monitoring systems, retention of outside consultants, investigate violations, adhere to regulations, and ensure the organization is operating per legal compliance (Bethel, 2016). Ultimately, if the Board of Directors does not do their job properly then they may suffer bad publicity, damage their reputation, and draw proxy attacks (Fraser & Simkins, 2010). Indeed, the Board cannot complete all tasks associated with organizational risk management; therefore, they delegate risk oversight to: the Audit Committee, the Chief Financial Officer (CFO), the Chief Risk Officer (CRO), and the Executive Committ...   [tags: Risk management, Management, Risk]

Better Essays
1089 words (3.1 pages)

Risk Management Essay

- Risk is a commonly used term and its usually liked with bad impacts on our objectives. The Oxford English Dictionary define risk as “ a chance or possibility of danger, loss, injury or other adverse consequences”. There is no agreeable technical definition of risk as it went through many developments. The first stage was the management of threats only then the term is extended to cover the threats and the opportunities which face the organisations. The latest stage which is the management of the threats, opportunities, uncertainties and its sources....   [tags: Business Management]

Better Essays
2279 words (6.5 pages)

Describing Risk-Based Decision Making Essay

- Describing Risk-Based Decision Making In addition to participating in two forums in week seven, the final assignment is to complete a four to five page paper on risk-based decision making. What is risk-based decision making. Risk-based decision making is an organizational procedure that processes the likelihood of unwanted outcomes into a structured format to better help stakeholders make informed choices. This paper will draw upon the various lecture presentations from weeks one through seven, the class textbook and other applicable resources to more fully describe how risk-based decision making requires consideration of the following questions: • Can risk be reduced....   [tags: risk analysis, controls]

Better Essays
1450 words (4.1 pages)

Enterprise Risk Assessment Essay

- United Mortgage is a mortgage company locates in Fayetteville, North Carolina. Primary objective is to offer mortgage financing to the community., 80% percent of United Mortgage loans are Government loans extent to soldier station in Fort Bragg North Carolina. United Mortgage is a small mortgage company. Concentrate in offer VA financing to soldier in Fort Bragg, first time homebuyer, second home, and investment mortgage loan. . Pine Valley Mortgage offers different programs to please the customer needs....   [tags: Business Analysis Case Study]

Free Essays
801 words (2.3 pages)

Identifying Vulnerability And Risk Vectors For Internet Of Things Essay

- Introduction The purpose of this quantitative research study is to find a solution for identifying vulnerability and risk vectors for Internet of Things (IoT) and sensitive data processed and stored across billions of devices or things connected to Internet for enabling private and public transactions. Information Security vulnerabilities can be addressed by identifying threats from vulnerabilities, gaps in existing physical, technical controls and processes proactively and implementing the required mitigation controls....   [tags: Computer security, Security, Risk]

Better Essays
1229 words (3.5 pages)