Organizational Risks & Mitigation Methods Essay Example for Free

Organizational Risks Mitigation Methods EssayAs per our discussion last week Ive prepared this memo that outlines the risks that CWTI faces and methods of palliation for those risks. The goal of this exercise is to have a starting point for establishing a risk management process within CWTI. Below Ive identified risks and provided suggested methods of mitigation for each. Id like to point out that while most of these risks have more than one potential mitigation method, I chose to present the method I believe would be most successful for CWTI. 1.)Risk of fluctuation in foreign exchange rates USD receivablesMitigate using image method ie. forrad contracts, hedging etcetera2.)Risk of fluctuation in interest rates USD loanMitigate using control method ie. forward contracts, hedging etc.3.)Risk of supply shortage/delay due to truck breakdownsMitigate using variegation ie. Have alternative options of transportation readily available4.)Risk of losing major customerMitigate using diversification ie. Try to gain other customers in need of timber5.)Risk of losing timber licensesMitigate using control technique ie. demo strong internal controls regarding the requirement to clear and replant and ensure to measure controls. 6.)Risk of non- configuration with case stock exchange requirements Mitigate using control technique ie. Establish strong internal controls regarding compliance requirements for stock exchange.7.)Risk of inventory shrinkage due to theft, damageMitigate using share/transferring technique ie. leverage insurance for buildup of inventory8.)Risk of supply delay if sawmill equipment goes down, round turnover/lack of skilled staff Mitigate using diversification technique ie. Have alternative options of production in the event any of these occur9.)Risk of delay/damage/lost shipment to overseas marketMitigate using sharing/transferring technique ie. Purchase additional insurance that would cover this10.) Risk of timber market/supply what if some thing happens to woodwind? Fire, bug infestation Mitigate using diversification ie. Find other supplies of timber11.) Risk of spirit environmental groups if CWTI doesnt live up to the clearing/replanting requirement Mitigate using control ie. Establish strong internal controls to ensure all clearing/replanting requirements are being fulfilled.12.) Risk of not meet financial obligations due to delayed/infrequent receivables CWTI operates year round but majority of payment simply gets received around December January (based on 60/90 day terms) Mitigate using diversification ie. Find more new customers that require timber throughout the year to balance the cash flow.We domiciliate further discuss other mitigation methods should you please. I look forward to your feedback.