- The process of risk management requires organizations to understand risk to operations. This requires analysis and planning and we identified 4 core methods to treat risk. Identify and explain in detail each method to treat risk. For each method, provide an example of a risk to Rutgers University and your recommended mitigation treatment that is within that category. Explain each recommended mitigation on its effect on the probability and impact of the risk. Be sure to consider the viability of the recommendation from a practical and cost / benefit point of view.
- Explain the importance of the Business Impact Analysis and its role in developing the Business Continuity Management plan. During the Business Impact Analysis key data is analyzed to define for each function the RTO, RPO, MAO and WRT. Define each acronym, explain its use and why it is important to the Business Continuity Plan.
agent and distributor or open a representative office in the Indonesia. If the business shows the sign of growing, then foreign investor will apply for a company status. The foreign investor will establish the office according to the line of business and the government will open essential licences, the main disadvantage of opening representative office is that they cannot conduct direct sales and issue bill of lading. Entry Strategies: The foreign countries can take advantage of various business opportunities by adopting various entry mode strategies. Different writers describe different entry mode strategies. According to Cullen and Parboteeah 2011, entry mode strategies are Exporting, Strategic Alliance and Foreign Direct Investments. (Phatak, Bhagat & Kashlak 2009) defines exporting, licencing, countertrade, contract manufacturing, non-equity strategic alliance, equity based joint venture, wholly owned subsidiaries. While (Meyer, Estrin, Bhaumik & Pen 2009) has described Greenfield, Acquisition, Joint Venture as three entry strategies in the emerging markets. Here I am going to describe three viable strategies: Three Entry Strategies: Equity Based Venture: In this strategy, a company can enter into foreign market by holding equity ownership and control of company through foreign direct investment. These type of ventures are useful in that countries where the risk is low, markets are stable. These can be done for various purposes like to obtain raw materials, to make products for export to home country. Equity based ventures are further divided into wholly owned and joint venture (Phatak, Bhagat & Kashlak 2009). Wholly Owned Subsidiaries: Subsidiaries in which foreign countries has full control and ownership in the host countries are called wholly owned subsidiaries. These are of two types: Greenfield: Greenfield means set up a new entity in foreign company from scratch by using locally available sources. Acquistions: It means to capture the existing business running in the foreign country. Joint Venture: It means to establish a subsidiary in foreign company by two or more companies by sharing resources. It is effective when the amount of capital invested or risk is huge, a single company cannot afford it, markets are unstable and lot of risk is available in the host country. As Indonesia has lots of oil reserves and these requires lots of capital, joint venture is an effective way to enter that market (Meyer, Estrin, Bhaumik & Pen 2009).>GET ANSWER