企业风险管理代写 Enterprise Risk management

Enterprise Risk management

企业风险管理代写 Please use the table below as your cover sheet for the 1^st page of the submission. The sheet should be before the cover/title page…

BPP Coursework Cover Sheet

Please use the table below as your cover sheet for the 1^st page of the submission. The sheet should be before the cover/title page of your submission.

Programme	MSc Management
Module name	Enterprise Risk Management
QAA Level
Schedule Term
Student Reference Number (SRN)	BP0229898
Report/Assignment Title	GSK Risk Management
Date of Submission (Please attach the confirmation of any extension received)	24th, September 2020.
Declaration of Original Work: I hereby declare that I have read and understood BPP’s regulations on plagiarism and that this is my original work, researched, undertaken, completed and submitted in accordance with the requirements of BPP Business School. The word count, excluding contents table, bibliography and appendices, is 2992 words. Student Reference Number: BP0229898            Date: 24th, September 2020.
By submitting this coursework you agree to all rules and regulations of BPP regarding assessments and awards for programmes.  Please note, submission is your declaration you are fit to sit. BPP University reserves the right to use all submitted work for educational purposes and may request that work be published for a wider audience. BPP Business School

 

1. Introduction. 企业风险管理代写

In the current digital world, every organization is required to maintain sustainable growth and development for survival. To maintain sustainable growth and development, every organization minimizes its risks and capitalizes on the current opportunities. GlaxoSmithKline is a global healthcare British organization aiming to help people feel better, do more, and live longer.

The study shows the impact of enterprise risk management programs on organizational financial performance. The study reveals that enterprise resource management is positively related to organizational value. In all factors, firm size, Tobin, Q, and institutional ownership are positively related to enterprise risk management while negatively related to assets opacity and leverage. Thus enterprise risk management is very crucial for the growth and success of any organization. Moreover, an increase in Firm value indicates the sustainable development of the organization. Thus all organizations need to identify their risks and opportunities and minimize or control their risks (Hoyet and Liebenberg, 2011).

Another study explains the relation of the enterprise risk management system and firm financial performance. They evaluate the relationship of 112 US firms who are disclosing their information regarding enterprise risk management. The results reveal that firm complexity, firm size, environmental uncertainty, industry competition, and board of directors monitoring are highly correlated with enterprise risk management. Thus organizations need to maintain a proper risk management system that minimizes their risk and increases financial performance. Furthermore, the study explains that enterprise risk management is not only beneficial in the short run but also provide benefit in the long run (Tseng et al., 2009).

This study explores the impact of enterprise risk management on organizational success. 企业风险管理代写

For this purpose, the researcher evaluates 1100 US firms for a period of five years from 2011 to 2015. The results show that all factors are highly correlated with enterprise risk management except organizational culture. Furthermore, the study explains that an enterprise risk management system needs every global organization to ensure smooth operations and profit. In addition, the study shows that those firms are highly successful who disclose information regarding their enterprise risk management system (Dikenson, 2001).

They explore the relationship between the early stage of enterprise risk management implementation systems in the US and international firms and different organizational factors. For this purpose, the authors evaluate 123 firms of US and international. The results reveal that enterprise risk management implementation is positively correlated to the presence of four big auditors, the presence of a Chief risk officer, an independent board, support of CEO and CFO, and the presence of entities in the banking, education, and insurance industry. Finally, they conclude that enterprise risk management is the key point for success and sustainable development. All organizations need to develop and maintain an enterprise risk management framework and follow (Hermanson et al., 2005).

This study explores the relationship between organizational dynamics and enterprise risk management.

They study the data of three firms through a longitudinal case study method for a period of seven years. The results describe that organizational dynamics are highly correlated with the enterprise risk management system. Furthermore, they show that enterprise risk management is essential for any organizational survival in the current complex and competitive environment of business. Each business must have its own ERM system. Finally, they conclude that enterprise risk management has a massive impact on organizational dynamics (Azzone et al., 2010).

They explain the relationship between enterprise risk management and firm financial performance. For this purpose, the researchers evaluate different factors of 100 international firms. The results show a mixed impact. Some of the factors are highly correlated with enterprise risk management, while some show a negative association. Furthermore, the study explains that international organizations are highly sensitive to different risks. Therefore they must have a good risk management framework to appropriately respond to each risk and avoid any damage or loss associated with that risk. Finally, the study concludes that the ERM system boosts organizational performance and creates value in the long run (Rustambekov et al., 2011).

2. Aims of the organization (GSK). 企业风险管理代写

GlaxoSmithKline is a UK based global healthcare organization that aims:

• To help people feel better.
• To do more.
• To live longer.

Thus the aims of the GlaxoSmithKline clear their vision. They are the only healthcare company that provides the latest and technology-based healthcare solutions to make people’s lives better than before. GlaxoSmithKline not only provides healthcare solutions but also help people financially to make their life easy and better through various programs like scholarships and charity. (GSK, 2019). GSK, through their missions, provide different services to their stakeholders. They also consider environment-related issues; hence they initiated a program green world that provides planting trees in different countries of the world. Thus by planting trees, GSK helps the world to resolve environmental issues. GSK also help disabled people by providing them wheelchairs or artificial organs or other equipment that can help them in their life. Thus in this way, GSK contributes to society by helping people and their surrounding environment. Hence the aims of the GSK are very clear.

3. Risk. 企业风险管理代写

The probability that actual results will differ from expected results is known as risk. (William et al., 2017).

Risk is the uncertainty that the actual outcome will deviate from the expected outcome. (Jonsen and Yang, 2011).

The authors describe the relationship between different organizational risks and their impact on organizational value. The results show that all types of internal risks are positively related to organizational value, but some external risks have no impact on organizational value. In addition, they explain that not all types of risks occur in all cases, but some of them are associated with special circumstances, and as the circumstance fulfill, they occur; otherwise, they do not show their impact (Nocco and Stulz, 2006).

Risks are the hurdles that make any organization damage or stop operations. Hence every organization needs to properly analyze and develop a system that can control their risk to survive the industry. Many organizations fail during their startup because of their risk associated with them. Thus to grow, every organization must know its risks associated with them. Without accurate information regarding every area of their business, no business can grow and flourish. Thus an enterprise risk management system helps deal with all types of risk and professionally controls them.

3.1. Opportunities and Threats.

Opportunities and threats are always considered beneficial for the organization because they provide help in organizational growth.

a.Opportunities (GSK). 企业风险管理代写

The following are the opportunities for GSK.

Changing demographics, Advances in science and technology, Pricing and access, Regulatory environment, and societal expectations.

i.Changing Demographics.

Changing demographics show a huge demand for healthcare products because the world population is projected to increase till 2030, about 8.8 billion. Thus increasing population means increasing demand for therapeutic and preventative health care products.

ii.Advances in Science and technology.

Rapid development in science and technology is transforming the health sector. Thus new inventions in cell therapy technologies and other health-related technologies show opportunities. Advancement in functional genomic like CRISPR also ensures other drug discoveries.

iii.Pricing and access. 

Highly demanding inventions are required for providing quality health care products. As new technology is very costly, thus availing new technology with minimum price in an opportunity for GSK. Seeking those markets where new technology is low in price with high quality.

iv.Regulatory environment.

Healthcare is a hugely regulated industry where public expectations reflect health products that comply with health, safety, and quality. GSK is closely monitors and where relevant and required to improve regulations in the US, Europe, and the UK.

v.Societal Expectations.

Business expectations are rapidly changing.  Despite financial benefits, businesses are expecting to create value for their stakeholders by working for environmental and social issues. GSK is responding to 13 key areas for providing benefits to their stakeholder as expectations are changing; hence GSK is responding accordingly.

b.Threats (GSK).

Principal threats of GlaxoSmithKline are patient safety, product quality, financial controls & reporting, anti-bribery & corruption, commercial practices, privacy, research practices, third party oversight, environment, health & safety, and sustainability, information security, and supply continuity. Our risk management framework is designed to support our long-term priorities (GSK, 2019 Page 43- 46 & 275- 287)

i.Patient safety. 

“Failure to appropriately collect, review, follow up, or report human safety information, including adverse events from all potential sources, and to act on any relevant findings on time”.

ii.Product quality.

“Failure by GSK, its contractors or suppliers to ensure:–Appropriate controls and governance of quality in product development, Compliance with good manufacturing practice or good distribution practice regulations in commercial or clinical trials manufacture and distribution activities, Compliance with the terms of GSK product licenses and supporting regulatory activities.”

iii.Financial controls and reporting.

“Failure to comply with current tax laws or incurring significant losses due to treasury activities; failure to report accurate financial information in compliance with accounting standards and applicable legislation.”

iv.Anti-bribery and corruption (ABAC).

“The ABAC risk comprises five sub-risk areas:–Bribery of public officials by GSK, Bribery of commercial and other non-public entities by GSK, Bribery by third parties acting on behalf of GSK, GSK employees receiving and requesting bribes and other undue personal benefit, Other corruption-non-compliance with laws and regulations related to money laundering or facilitation of tax evasion by third parties/clients/partners.”

v.Commercial practices.

“Failure to engage in commercial activities that are consistent with the letter and spirit of the law, industry, or the Group’s requirements relating to marketing and communications about our medicines and associated therapeutic areas; appropriate interactions with healthcare professionals (HCPs) and patients; and legitimate and transparent transfer of value.”

vi.Privacy. 企业风险管理代写

“The failure to collect, secure, use, and destroy personal information (PI) in accordance with data privacy laws can lead to harm to individuals and GSK, including fines and operational, financial and reputational risk.”

vii.Research practices.

“Research practices risk is the failure to adequately conduct ethical and sound pre-clinical and clinical research. In addition, it is the failure to engage in scientific activities that are consistent with the letter and spirit of the law and industry, or the Group’s requirements. It comprises the following sub-risks: Non-clinical & laboratory research; Human subject research; Data integrity; Care, welfare and treatment of animals; Human biological samples management; Data disclosure; Regulatory filings and engagement; Scientific engagement; and Intellectual property”.

viii.Third-party oversight (TPO).

“There is a risk that our third parties fail to meet their contractual, regulatory or ethical obligations resulting in significant operational, reputational, legal and financial risk for GSK (and in some cases our employees directly). Put, and there is a risk that third parties fail to deliver the goods and services we expect or fail to deliver them in a legal and compliant way”.

ix.Environment, health, and safety & sustainability.

“Failure in management of the execution of hazardous activities; GSK’s physical assets and infrastructure; handling and processing of hazardous chemicals and biological agents; control of releases of substances harmful to the environment in both the short and long term; leading to incidents which could disrupt our R&D and Supply activities, harm employees, harm the communities we operate in and harm the environment and its longer-term sustainability.”

x.Information security. 企业风险管理代写

“The risk that unauthorized disclosure, theft, unavailability or corruption of GSK’s information or key information systems may lead to harm to our patients, workforce, and customers, disruption to our business and loss of commercial or strategic advantage, damage to our reputation or regulatory sanction.”

xi.Supply continuity.

“Failure to deliver a continuous supply of the compliant finished product; inability to respond effectively to a crisis incident on time to recover and sustain critical operations.”

3.2. Existing controls.

Shimpi et al. (2015) tested the association between enterprise risk management and firm financial performance. For this purpose, the researchers evaluate 500 Canadian firms. They used the availability of the Chief risk officer and risk committee as a proxy. The results explain that enterprise risk management is highly correlated with return on assets and stock price increase. Furthermore, the study explains that those firms’ stock price volatility decrease has managed a proper enterprise risk management framework and regularly discloses information regarding their risk management system. Finally, they conclude that a proper risk management system is crucial for every organization to remain successful. 企业风险管理代写

GSK is a global organization and maintains and plan for every situation to hedge their organization. For this purpose, they have some measures which are given below:

1. GSK has a huge global network of quality and compliance professionals from lower management to top management. They oversee and provide solutions from site level to top management to ensure quality and operational compliance.
2. Financial results are reviewed by regional management and then the financial controller and Chief financial officer. Thus they evaluate business financial health and plan accordingly.
3. The Anti-corruption board was created in 2019 to control the risk of corruption. For this purpose, the board committee includes board representatives from all functional areas.
4. GSK design new strategic objectives that are compliant with commercial practices and can launch new products that are competitive and resource effectively.
5. GSK has a privacy governance board headed by a Chief compliance officer who oversees GSK’s overall data privacy operating model.
6. GSK has a global policy framework that enables them to deal with third parties, and it applies to all employees and contractors.
7. GSK, s corporate executive team is responsible for environment, health, safety, and sustainability-related issues. They oversee and ensure an effective control system.
8. GSK has a global information security policy that enables them the control of information security risk.
9. The supply chain model in the pharmaceutical, vaccine, and healthcare business in such a way that ensures the delivery of quality products globally as far as possible.

3.3. Calculation of risk and risk Threshold. 企业风险管理代写

GSK has a developed framework for managing their risks. They have a professional team that identifies risk and their nature and then provides a suitable solution to avoid or control it. Thus the nature of risk determines the action strategy.

The study explains different risk management models. They evaluate different models to increase organizational performance. The authors explain that the enterprise risk management system is a full package for increasing organization performance. Furthermore, they explain that the enterprise risk management framework enables organizations to control their all-risk and increase their organization performance. In addition, the authors also express that some organizations manage their risk in such a way that not only save their organization but also provide benefit to the industry and stakeholders too (Olson and Wu, 2010).

They explain the enterprise risk management system in a global context. The authors explain that enterprise risk management systems provide strength to the health of the organization, save at from threats, and help in capitalizing new opportunities. They further add that risk is very dangerous for any organization. Sometimes it gives small losses but sometimes it collapses a business. In addition, they provide solutions for managing a proper and strong risk management system that can hedge the organization from any risk. Finally, they conclude that a proper risk management system framework not only hedges organizations against risks but also provides different opportunities to grow and develop (Merkley et al., 2001).

3.4. Mitigation Actions. 企业风险管理代写

GSK has a professional team for risk management, and they provide mitigation actions to control or avoid risks. GSK provides them following mitigation actions, s professional team for risks as mentioned above.

1. Their chief medical officer is responsible for patient safety. The chief medical officer has a Safety governance board that evaluating and ensuring human safety. Thus, they are ultimately focusing their patients to ensure their health and happiness through different health care products.
2. GSK has a global professional team that ensures quality products. They have a representative from the site level to top management to oversee and ensure quality compliance with international standers.
3. GSK controls its financial affair through a highly competitive authority, financial controller and chief financial officer, and regional management. They oversee and plan their financial matters accordingly and control all risks associated with this area to avoid any loss.
4. GSK has an anti-corruption board that controls and oversees all their corruption-related matters. Anti-corruption board control all risk related to the business employees from lower-level staff to top management.
5. GSK has set up new strategic objectives to cover their commercial practices related activities. They set new standards that are compliant with international standards to launch new products compliant with international standards and policies.
6. GSK’s global policy framework enables them to interact with their suppliers and contractors appropriately. This policy is applicable to all employees and contractors.
7. GSK, s corporate executive team oversees and controls environment, health, safety, and sustainability-related matters. They correctly identify risk and provide solutions to it.
8. GSK global information policy framework enables them to control or quickly respond to any risk information security-related. Any information related risk can harm the organization in short as well as in the long run. Thus quick response is required in the current world of information technology.
9. The supply chain model of GSK is very strong that enables them to deliver their healthcare and vaccine-related products worldwide as far as possible.

 

4. Conclusion. 企业风险管理代写

In the current digital world, every organization needs to grow and maintain sustainable development. Thus to grow and make continuous development, organizations need to control their risks and capitalize on their opportunities. Hence every organization must have its strong enterprise risk management system framework for sustainable development.

GSK is a global healthcare business that provides healthcare products that comply with international standards worldwide. They have different boards regarding all business matters. They deal with all areas of business and their issues; specifically, they manage risks associated with each area of the business. So GSK has a well-developed enterprise risk management framework. Therefore they are successful in their business. Thus enterprise risk management system is very crucial for the sustainable development of any organization.

 

5. References

1. Hoyt, R.E., and Liebenberg, A.P., 2011. The value of enterprise risk management. Journal of Risk and insurance, 78(4), pp.795-822.
2. Nocco, B.W., and Stulz, R.M., 2006. Enterprise risk management: Theory and practice. Journal of applied corporate finance, 18(4), pp.8-20.
3. Gordon, L.A., Loeb, M.P. and Tseng, C.Y., 2009. Enterprise risk management and firm performance: A contingency perspective. Journal of accounting and public policy, 28(4), pp.301-327.
4. Dickinson, G., 2001. Enterprise risk management: Its origins and conceptual foundation. The Geneva Papers on Risk and Insurance. Issues and Practice, 26(3), pp.360-366.
5. Beasley, M.S., Clune, R., and Hermanson, D.R., 2005. Enterprise risk management: An empirical analysis of factors associated with the extent of implementation. Journal of accounting and public policy, 24(6), pp.521-531.
6. Arena, M., Arnaboldi, M., and Azzone, G., 2010. The organizational dynamics of enterprise risk management. Accounting, Organizations, and Society, 35(7), pp.659-675.
7. McShane, M.K., Nair, A., and Rustambekov, E., 2011. Does enterprise risk management increase firm value?. Journal of Accounting, Auditing & Finance, 26(4), pp.641-658.
8. Grace, M.F., Leverty, J.T., Phillips, R.D., and Shimpi, P., 2015. The value of investing in enterprise risk management. Journal of Risk and Insurance, 82(2), pp.289-316.
9. Miccolis, J.A., Hively, K., and Merkley, B.W., 2001. Enterprise risk management: Trends and emerging practices. Altamonte Springs, FL: Institute of Internal Auditors Research Foundation.
10. Olson, D.L. and Wu, D.D., 2010. Enterprise risk management models (p. 15). BerlingHeilderbeg: Springer.