You are the the store manager of a large Walmart Supercenter. You are being asked to identify your knowledge of risk management as it relates to a store that you manage and the company as a whole. The store that you manage has 300 employees. As a result, the risks that you identify in this paper would be exactly similar to risks that you would face as a manager of a local Walmart supercenter in your area and as a corporation as a whole.

The essay should be written in APA format and you should include AT LEAST 15 key terms from our reading material to support your thoughts. (I want you to underline and bold the key terms that you use. This will allow me to quickly identify that you have used the required material in your paper.)

You should answer the following in your paper:

1. Introduction of your paper should be a risk management policy statement.

The following is an example of a risk management policy statement for the Big Box Retail Corporation:

The Big Box Retail Corporation Office of Risk Management is responsible for administering a program to protect and preserve human, physical, and financial assets. In this capacity the Risk Management Department solicits quotations for property, liability, and surety coverages, as well as compiling and processing insurance claims. Management of this program is accomplished by identifying potential human, physical, financial and natural losses and then determining the best method available to handle the risk, whether that is through risk avoidance, risk prevention, risk assumption or risk transfer.

2. Describe the steps in the risk management process at Walmart. (This should be your second paragraph)

3. What are ten potential risks that you might identify in the store that YOU manage and to the company as a whole (Remember to use the annual report and the 10-K report that is in the reading material in our classroom as a guideline).

Break down the risks by the risk categories that we have discussed in the class- EX: Pure/Speculative, Diversifiable/non diversifiable, Enterprise Risk, Operational and Project Risk. Then write a separate paragraph for each of the ten risks that you identify-Provide a general overview of the risk and what you have learned about that risk in our class.

In each section/paragraph about the risks that you identify, you should also answer the following about each risk:

1. What types of risks are these? How would you measure or analyze the risks? (Use our text and outside sources in the library to answer this question)

2. What are the sources of information that you could use as a manager to identity the risks in your store and as a company as a whole? Explain what they are and how you would use them.

3. What are the techniques that you would consider for each individual risk? Why? (Example: You could talk about property risk and the insurance transfer process, you could talk about commodity risk and how you could hedge the risk to peg your costs.

Finally, make sure that you address the following somewhere in your paper:

Explain the meaning of risk control. Make sure that you explain how some of the terms relate to the store that you manage and in the company as a whole:
1. Avoidance
2. Loss prevention
3. Loss reduction

Paper Requirements:

A. Title Page

B. Introductory Paragraph

C. Font and Spacing – Use Arial or Times New Roman 12 pitch font with double spaced lines.

D. Reference Page – Include all sources on a Reference page. Academic sources from the online library and our course content are expected! Do not rely on internet sources.

E. Utilize the APA Style for the review and to documenting sources. DO NOT USE FIRST PERSON!

F. Punctuation, essay format (thesis, supporting paragraphs with transition and topic sentences, and summary) grammar and documentation count toward your grade.

 

 

 

 

Risk Management Policy Statement

The Walmart Supercenter Office of Risk Management is dedicated to safeguarding human, physical, and financial assets. Our department actively seeks to mitigate potential losses through risk identification, prevention, and transfer strategies. We prioritize the protection and preservation of resources through comprehensive risk management practices.

Steps in the Risk Management Process at Walmart

The risk management process at Walmart involves several key steps. Firstly, risk identification is crucial in recognizing potential threats and vulnerabilities that could impact the store and the company as a whole. Subsequently, risk analysis is conducted to assess the likelihood and impact of identified risks. Following this, risk evaluation is performed to prioritize risks based on their severity and potential consequences. After evaluating risks, risk treatment strategies are implemented to manage and mitigate the identified risks effectively.

Ten Potential Risks at Walmart Supercenter

Pure/Speculative Risk

1. Economic Risk: Economic downturns impacting consumer spending behavior and company profits.- Types of risks: Speculative risk. Measured through economic indicators such as GDP growth, consumer confidence, and inflation rates.
– Sources of information: Economic reports, financial statements, market research data.
– Risk management techniques: Diversification of product offerings, cost-cutting measures, strategic pricing adjustments.

Diversifiable/Non-Diversifiable Risk

2. Supply Chain Risk: Disruptions in the supply chain affecting product availability and customer satisfaction.- Types of risks: Non-diversifiable risk. Analyzed through supplier assessments, supply chain mapping, and scenario planning.
– Sources of information: Supplier contracts, inventory records, logistics reports.
– Risk management techniques: Supplier diversification, inventory optimization, contingency planning.

Enterprise Risk

3. Reputational Risk: Negative publicity or social media backlash impacting brand reputation and customer trust.- Types of risks: Enterprise risk. Evaluated through media monitoring, customer feedback analysis, and brand perception surveys.
– Sources of information: Social media platforms, customer reviews, public relations reports.
– Risk management techniques: Crisis communication strategies, brand reputation management, community engagement initiatives.

Operational Risk

4. Cybersecurity Risk: Data breaches or cyber-attacks compromising customer data security and business operations.- Types of risks: Operational risk. Measured through vulnerability assessments, penetration testing, and security audits.
– Sources of information: IT security reports, breach incident logs, network monitoring tools.
– Risk management techniques: Implementation of robust cybersecurity protocols, employee training on data security best practices, regular security audits.

Project Risk

5. New Market Entry Risk: Challenges and uncertainties associated with expanding into new markets and geographical regions.- Types of risks: Project risk. Analyzed through market research, competitor analysis, and feasibility studies.
– Sources of information: Market research reports, competitor profiles, demographic data.
– Risk management techniques: Pilot testing in new markets, strategic partnerships with local businesses, localization of marketing strategies.

Risk Control

Risk control encompasses various strategies aimed at managing and mitigating risks effectively. The key terms associated with risk control include:

1. Avoidance: Eliminating activities or processes that pose significant risks to the store or company.
2. Loss Prevention: Implementing measures to prevent potential risks from materializing and causing harm.
3. Loss Reduction: Minimizing the impact of risks that cannot be entirely prevented through proactive mitigation strategies.

In conclusion, effective risk management practices are crucial for ensuring the sustainability and success of Walmart Supercenter as well as the broader corporation. By proactively identifying, analyzing, and addressing potential risks across different categories, Walmart can enhance its resilience and adaptability in an ever-evolving business environment.

 

 

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