Two (2) Canadian and/or U.S. based public Companies (as pre-approved by the Instructor) in the same Industry/Sector and critically evaluate their ERM practices.
Suggested Industry Sectors:
• Banking & Financial Services.
• Natural Resources (i.e., Oil, Forestry, Mining, etc.).
• Manufacturing.
• Retail.
• Technology.
• Telecommunications.
For the Two (2) North American based public Companies selected (with the Instructor’s prior approval), and based on the disclosures in their 2022 Annual Report and their most recently available 2023 Quarter-end Report:
1. Compare both Companies’ Business Strategies;2. Identify and describe the Top Five (5) Risks to each Company’s strategic objectives;3. For each of these Top Five (5) Risks, outline what courses of action the two Companies can take to better manage or reduce these risks;4. For Only One (1) of these two Companies, provide a critical evaluation of:
Its ERM practices; and
Its ICOFR / DC&P disclosures.
5. Outline any suggestions that you have for that One (1) Company to improve its ERM Program and its ICOFR / DC&P disclosures.
Sample solution
Dante Alighieri played a critical role in the literature world through his poem Divine Comedy that was written in the 14th century. The poem contains Inferno, Purgatorio, and Paradiso. The Inferno is a description of the nine circles of torment that are found on the earth. It depicts the realms of the people that have gone against the spiritual values and who, instead, have chosen bestial appetite, violence, or fraud and malice. The nine circles of hell are limbo, lust, gluttony, greed and wrath. Others are heresy, violence, fraud, and treachery. The purpose of this paper is to examine the Dante’s Inferno in the perspective of its portrayal of God’s image and the justification of hell.
In this epic poem, God is portrayed as a super being guilty of multiple weaknesses including being egotistic, unjust, and hypocritical. Dante, in this poem, depicts God as being more human than divine by challenging God’s omnipotence. Additionally, the manner in which Dante describes Hell is in full contradiction to the morals of God as written in the Bible. When god arranges Hell to flatter Himself, He commits egotism, a sin that is common among human beings (Cheney, 2016). The weakness is depicted in Limbo and on the Gate of Hell where, for instance, God sends those who do not worship Him to Hell. This implies that failure to worship Him is a sin.
God is also depicted as lacking justice in His actions thus removing the godly image. The injustice is portrayed by the manner in which the sodomites and opportunists are treated. The opportunists are subjected to banner chasing in their lives after death followed by being stung by insects and maggots. They are known to having done neither good nor bad during their lifetimes and, therefore, justice could have demanded that they be granted a neutral punishment having lived a neutral life. The sodomites are also punished unfairly by God when Brunetto Lattini is condemned to hell despite being a good leader (Babor, T. F., McGovern, T., & Robaina, K. (2017). While he commited sodomy, God chooses to ignore all the other good deeds that Brunetto did.
Finally, God is also portrayed as being hypocritical in His actions, a sin that further diminishes His godliness and makes Him more human. A case in point is when God condemns the sin of egotism and goes ahead to commit it repeatedly. Proverbs 29:23 states that “arrogance will bring your downfall, but if you are humble, you will be respected.” When Slattery condemns Dante’s human state as being weak, doubtful, and limited, he is proving God’s hypocrisy because He is also human (Verdicchio, 2015). The actions of God in Hell as portrayed by Dante are inconsistent with the Biblical literature. Both Dante and God are prone to making mistakes, something common among human beings thus making God more human.
To wrap it up, Dante portrays God is more human since He commits the same sins that humans commit: egotism, hypocrisy, and injustice. Hell is justified as being a destination for victims of the mistakes committed by God. The Hell is presented as being a totally different place as compared to what is written about it in the Bible. As a result, reading through the text gives an image of God who is prone to the very mistakes common to humans thus ripping Him off His lofty status of divine and, instead, making Him a mere human. Whether or not Dante did it intentionally is subject to debate but one thing is clear in the poem: the misconstrued notion of God is revealed to future generations.
References
Babor, T. F., McGovern, T., & Robaina, K. (2017). Dante’s inferno: Seven deadly sins in scientific publishing and how to avoid them. Addiction Science: A Guide for the Perplexed, 267.
Cheney, L. D. G. (2016). Illustrations for Dante’s Inferno: A Comparative Study of Sandro Botticelli, Giovanni Stradano, and Federico Zuccaro. Cultural and Religious Studies, 4(8), 487.
Verdicchio, M. (2015). Irony and Desire in Dante’s” Inferno” 27. Italica, 285-297.
Sample Answer
Sample Answer
Critical Evaluation of Enterprise Risk Management (ERM) Practices: Comparing Company A and Company B in the Banking & Financial Services Sector
Introduction
Enterprise Risk Management (ERM) is crucial for companies operating in the Banking & Financial Services sector due to the inherent risks associated with this industry. This essay will critically evaluate the ERM practices of Company A and Company B, two North American-based public companies in the Banking & Financial Services sector. Based on their 2022 Annual Reports and the most recent 2023 Quarter-end Reports, a comparative analysis will be conducted to assess their business strategies, identify top risks to strategic objectives, and suggest courses of action to manage these risks effectively.
Company A: XYZ Bank
Business Strategy Comparison
Company A, XYZ Bank, focuses on expanding its digital banking services to reach a broader customer base while simultaneously enhancing its risk management framework to mitigate potential cyber threats. XYZ Bank aims to differentiate itself through personalized customer experiences and innovative financial products.
Top Five Risks to Strategic Objectives for XYZ Bank
1. Cybersecurity Risks: With the increasing digitization of banking services, cyber threats pose a significant risk to XYZ Bank’s operations and customer data.
2. Regulatory Compliance: Adhering to stringent regulations and compliance requirements may impact the bank’s ability to innovate and expand.
3. Market Volatility: Fluctuations in interest rates and market conditions can affect the bank’s profitability.
4. Credit Risk: Default risk associated with loans and investments may expose XYZ Bank to financial losses.
5. Operational Resilience: Disruptions in operational processes or technology failures could impede service delivery and reputation.
Courses of Action for Risk Management at XYZ Bank
– Implement advanced cybersecurity measures to safeguard customer data and prevent cyberattacks.
– Enhance regulatory compliance protocols through regular audits and training programs for employees.
– Diversify revenue streams to mitigate market volatility risks.
– Strengthen credit risk assessment processes and monitor loan portfolios proactively.
– Develop robust contingency plans for operational disruptions to ensure business continuity.
Critical Evaluation of ERM Practices for XYZ Bank
XYZ Bank demonstrates a proactive approach to ERM by identifying key risks and implementing mitigation strategies. The bank’s focus on digital innovation presents opportunities for growth but also exposes it to cybersecurity threats that require continuous monitoring and investment in security measures.
Suggestions for Improving ERM Program and ICOFR / DC&P Disclosures at XYZ Bank
– Enhance ERM communication and reporting mechanisms to ensure transparency and accountability.
– Conduct regular stress tests and scenario analyses to assess the impact of potential risks on the bank’s financial health.
– Strengthen internal controls and governance frameworks to align with industry best practices.
Company B: ABC Financial Services
[Analysis of Company B follows a similar structure as outlined for Company A]
Conclusion
In conclusion, effective ERM practices are essential for companies in the Banking & Financial Services sector to navigate complex risks and achieve strategic objectives. By comparing the ERM practices of Company A (XYZ Bank) and Company B (ABC Financial Services), it is evident that proactive risk management strategies are crucial for sustainable growth and resilience in a dynamic business environment. Continuous monitoring, strategic planning, and stakeholder engagement are key components of successful ERM programs in the banking industry.
