Risk management and performance:

• Linking risk management and performance

(a) Cotter, C. (2008) ‘Risk Management’, Financial Management, December/January pp 44-45

(b) McWorther, L., Matherly, M. and Frizzell, D. (2006) ‘ The connection between Performance Measurement and Risk Management,’ Strategic Finance, February pp 50-55

http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=c4fa9238-2715-414a-b7ae-906a7df1999a%40sessionmgr4002&vid=2&hid=4109

http://www.accountancyireland.ie/Documents/digital/2007/February/pageflip.html

(d) PricewaterhouseCoopers (PWC) (2009) ‘Seizing opportunity: linking risk and performance’, pp 1-30

file:///C:/Users/10325183/Downloads/pwc-risk-performance-2009.pdf

============= The connection between Performance Measurement and Risk Management,’Strategic Finance

General Corporate Governance/Risk regulation:

• Stakeholders in a company

• Potential stakeholder conflict

• Role of Internal Control/Audit Link to risk management

• UK Regulation/ International Regulation

(a) Hopkin – Chapters 19, 20, 31, 32, 33, 34 (book) the fundamental of risk management

(b) Ayres, F. and Logue, D (2002), ‘Risk Management in the Shadow of Enron’, The Journal of Business Strategy, July/August, pp 36-40 http://www.emeraldinsight.com/doi/abs/10.1108/eb040262?journalCode=jbs

http://eprints.bbk.ac.uk/308/1/Binder1.pdf

(d) Drennan, l. (2004) ‘Ethics, Governance and Risk Management: Lessons from Mirror Group Newspapers and Barings Bank, Journal of Business Ethics, Vol 52, Iss 3, pp 257-266

http://download.springer.com/static/pdf/459/art%253A10.1023%252FB%253ABUSI.0000037531.33621.2c.pdf?auth66=1427485387_cef68b516667cda9b7535c2ed765de98&ext=.pdf

(e) Sobell, P. and Reding, K. (2004) ‘Aligning Corporate Governance with Enterprise Risk Management, Management Accounting Quarterly, Vol. 5, No 2, pp 29-37

http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=a5990ab2-6fca-43bb-afbe-0dc30653fd80%40sessionmgr111&vid=1&hid=124

(f) Spira, L. (2001) ‘Enterprise and accountability: Striking a Balance, Management Decision, 39/9, pp 739-748

http://www.emeraldinsight.com/doi/pdfplus/10.1108/00251740110408700

(g) Verschoor, C. (2002), ‘Audit Committees focus on risk management’, Internal Auditing, July/August, pp27-32

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Continuity Planning:

• Managing and planning for disaster scenarios

• The future of risk management

Future of Risk Management:

• Future developments

(a) Hopkin – Chapters 18 & 36

(b) Cerullo, V. And Cerullo, M. (2004) ‘ Business Continuity Planning: A Comprehensive Approach, Information Systems Management Journal, Summer, pp 70-78

http://www.tandfonline.com/doi/pdf/10.1201/1078/44432.21.3.20040601/82480.11

(c) Kennedy, P., Perrottet, C. and Thomas, C. (2003), ‘Scenario planning after 9/11: Managing the impact of a catastrophic event, Strategy & Leadership, Vol 31, Iss 1, pp 4-13

http://www.emeraldinsight.com/doi/pdfplus/10.1108/10878570310455006

(d) Savage, M. (2002) ‘Business continuity planning’, Work Study, Vol 51, No 5, pp 254-261

http://www.emeraldinsight.com/doi/pdfplus/10.1108/00438020210437277

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Part B

Task 3. Carolyn Williams, writing in the ICSA Focus supplement of December 2012 states, “Today we have more rules, codes, standards and processes than ever before, yet these rules are not in themselves sufficient to ensure that the behaviour of individuals and teams is as it ought to be” (p.14). She goes on to say, “The Baker Report into the 2005 BP Texas City refinery explosion in the US found fault with the company’s leadership, competency, communications and culture, and suggested these were the key causes…………The Financial Services Authority’s investigation into the collapse of the Royal Bank of Scotland in 2008 concluded that there were underlying deficiencies in culture. “ (p.14).

It, therefore, seems that organisational culture has a great impact on the approach to risk management.

You are required to consider the relevance of culture to corporate risk management and also to offer a view, based on your previous research, of the culture displayed by BAT with regard to its approach to risk management.

(max1000w)

task 4. An executive of BAT was heard to say (this is a hypothetical statement); “All of this corporate governance regulation is like ‘taking a sledgehammer to crack a nut’. Of course the shareholders can rely on the executive directors to take care of their interests. I take it as a personal affront that anyone could suggest otherwise. Apart from a few rogues in the US and a few misguided executives in the UK there has never been a problem for investors. It also seems to be totally unnecessary to report on ‘risk’ within our Governance statements – what a waste of time!”

You are required to clarify and explain the statement made above and to give a well-considered response to the BAT executive.

(max1000w)

Learning Outcomes Assessed

• Understand the all encompassing nature and importance of risk management

• Use both qualitative and quantitative techniques in order to evaluate and manage risk

• Consider the external and internal influences on corporate management approaches to risk management

• Appreciate the importance of disaster scenario planning in today’s economic environment.

Assignments will be graded according to the following criteria:

• Evidence of critical judgement in selecting, ordering and analysing content in order to present a sound argument

• The demonstration and understanding of relevant concepts and models

• The demonstration of insight and originality in responding to the assignment

• The extent and level of research undertaken and the degree to which this research is appropriately referenced.

• It is important that the assignment is forward looking and is not an analysis of historic risk.

All of the usual University regulations will apply with regard to the late submission of work and plagiarism.