Jacob is the owner of Jacob’s Jam. What started as a hobby, quickly turned into a successful business. Jacob initially started selling his jams at local markets. The demand for his products grew quickly. He could no longer use his own kitchen and moved into a rental space in the industrial area. This allowed him to increase production and accommodate his new employees. He now supplies local stores and he also started selling online. He is also considering an offer from a venture capitalist. This would allow Jacob’s Jam to expand internationally.He knows that as his business is growing rapidly, he is exposed to more risks. Recently his business was a near victim of cyber-crime. He wants to know more about risk management. He came to you with a few questions relating to risk management, corporate governance and operational risk. You decided that you will compile a report that answers all his questions. The report should follow the following format:Q.1. Provide some background information and a summary of what is to follow in the report. The introduction should entice the reader to continue reading.Q.2 Provide a definition of what enterprise risk management is. Identify the fundamental concepts that this definition reflects. Relate the definition to Jacob’s Jam.Use below fundamental concepts and link to the case study xecute theirvalue inre hardera centralstrategyinedintoonluegy,entngthne-.GEMENTDefinitionEnterprise risk management is a rigorous and coordinated approach to assessingstrategic and financial objectives. This includes both upside and downsideand responding to all risks that affect the achievement of an organisation'srisks.Most of the definitions reflect certain fundamental concepts:Firstly, ERM is a process, which means that it is a set of continuous actionsactions are pervasive and inherent in the way management runs thedesigned to meet the risk management and corporate objectives. Thesebusiness.Secondly, ERM should be applied across the enterprise, at every level andunit. To successfully do this, an organisation must take all its activities intoaccount. ERM considers activities at all levels of the organisation, fromstrategic planning and resource allocation to marketing, human resources,production and credit review.Thirdly, it is designed primarily to manage downside and exploit upsiderisks in direct relation to an organisation's strategy and risk appetite. ERMintegrates risk management activities with strategic management andbusiness planning processes so that the organisation:identifies the opportunities for creating value that present the mostattractive risk/reward trade-offsdesigns a business model that is responsive to these opportunitiesobtains a holistic, enterprise-wide understanding of the risks inherentin the firm's assets, processes and the information used in decision-makingacquires the capabilities to manage the riskcollects and analyses the data to produce timely business riskinformationselects and implements the best strategy for exploiting desirable riskswhile concurrently mitigating undesirable riskssupports units to achieve their goals in a controlled environment.Fourthly, it includes risks from all sources (financial, operational, strategic)and also the risks created by 'natural hedges' and 'portfolio effects' fromtreating these in the collective.Fifthly, it involves the coordination of risk management activities. Thisspans:risk assessment (including identification, analysis, measurement andprioritisation)risk mitigation (including control processes)

Jacob's Jam isn't just a scrumptious spread for your morning toast; it's an account of business,…

Jacob is the owner of Jacob’s Jam. What started as a hobby, quickly turned into a successful business. Jacob initially started selling his jams at local markets. The demand for his products grew quickly. He could no longer use his own kitchen and moved into a rental space in the industrial area. This allowed him to increase production and accommodate his new employees. He now supplies local stores and he also started selling online. He is also considering an offer from a venture capitalist. This would allow Jacob’s Jam to expand internationally. He knows that as his business is growing rapidly, he is exposed to more risks. Recently his business was a near victim of cyber-crime. He wants to know more about risk management. He came to you with a few questions relating to risk management, corporate governance and operational risk. You decided that you will compile a report that answers all his questions. The report should follow the following format: Q.1. Provide some background information and a summary of what is to follow in the report. The introduction should entice the reader to continue reading. Q.2 Provide a definition of what enterprise risk management is. Identify the fundamental concepts that this definition reflects. Relate the definition to Jacob’s Jam. Use below fundamental concepts and link to the case study

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE