Risk Management and Strategy PDF

Topic 1: Risk Management and Strategy More efficient resource planning by making previously unforeseen costs visible I. Introduction Better tracking of projec...

Topic 1: Risk Management and Strategy More efficient resource planning by making previously unforeseen costs visible I. Introduction Better tracking of project costs and more Overview of Risk Management and Strategy accurate estimates of return on investment Increased awareness of legal requirements Risk management and strategy are interrelated Better prevention of physical injuries and concepts that are essential for organizational success. illnesses By integrating risk management practices and Flexibility, rather than panic, when changes or considerations into strategic planning processes and challenges do arise decision-making, organizations can effectively navigate uncertainties, capitalize on opportunities, minimize Components losses and achieve their long-term objectives. Effective risk management is essential for the success Risk management involves the identifying, and stability of an organization or project. This involves assessing, reducing, and keeping an eye on risks that a systematic approach to identifying, assessing, and could stop a company from reaching its goals. The idea mitigating potential risks that could hinder objectives. It of risk management has changed over time as is an ongoing process that needs to be adapted to organizations face more complex and uncertain changing circumstances. The main components of risk situations. management are: Strategy refers to the plan or direction adopted by an organization in making choices about resource 1. Risk Identification - This is an essential step in allocation, market positioning, and competitive risk management that entails identifying and advantage to create value for stakeholders to achieve recording possible hazards that can have an its long-term goals and objectives. impact on a project's, organization's, or business's ability to succeed. It is the initial Importance of Risk Management and Strategy phase of the risk management process, which also entails monitoring and control, risk Integrating risk management practices and strategy is assessment, and risk reduction. essential for organizations to anticipate and respond effectively to uncertainties. 2. Risk Measurement - This component focuses on quantifying the risks that have been found to Having a risk management strategy is important for determine how they might affect a project or shaping an organization’s risk management process, organization. This entails evaluating each risk's including security control selection and assessment, probability of happening as well as its potential contingency planning, system authorization decisions, effects. Prioritizing risks and allocating resources and operational decisions. for risk mitigation more effectively are made possible by effective risk measurement. Protection of Assets - helps protect an organization's assets, including finances, 3. Risk Mitigation - This includes developing action reputation, and human resources, by identifying plans and strategies to reduce the likelihood and and mitigating potential risks that could lead to impact of identified hazards. Mitigating risks to losses or harm. an acceptable level can significantly enhance project success and organizational resilience. Enhancing Decision-making - Incorporating risk considerations into strategic planning, 4. Risk Reporting and Monitoring - Risk reporting organizations can make more informed decisions involves the systematic communication of about resource allocation, market positioning, identified risks, their potential impacts, and the and growth initiatives. measures in place to manage them. It ensures that relevant stakeholders are aware of the Uncertainty Minimization and Improve current risk landscape and can make informed Resiliency - minimizes uncertainties by decisions. On the other hand, risk monitoring proactively identifying and addressing potential involves the continuous tracking and review of risks before they materialize and enhances risk factors and the effectiveness of risk organizational resilience by equipping the management activities. It ensures that risks are organization to withstand unexpected events being appropriately managed and that any and setbacks. changes in the risk environment are promptly Optimization of Opportunities - strategy not addressed. only focuses on mitigating threats but also on identifying and capitalizing on opportunities for 5. Risk Governance - It is the process that ensures growth and innovation of the business and the that all company employees perform their duties workers. following the risk management framework. Risk governance involves defining the roles of all II. Risk Management employees, segregating duties, and assigning authority to individuals, committees, and the Risk Management Process board for approval of core risks, risk limits, exceptions to limits, risk reports, and general Risk Management Process is a clearly defined method of oversight. understanding what risks and opportunities are present, how they could affect a project or organization, and how Methods to respond to them. Identifying and tracking risks that might arise in a project offers significant benefits, Not every risk needs to be entirely avoided. While some including: situations call for eliminating a threat, others might be better addressed through calculated strategies. This is where the various methods of risk management come into play. These methods provide a toolkit for commonly applied for newly-developed organizations and individuals to assess and address products, where feedback is used to find out the potential problems, allowing them to confidently potential flaws and challenges, which in turn will navigate uncertainty. By understanding these methods, help manage risks. you'll be equipped to make informed decisions about 3. Minimum Viable Product (MVP) Development- how to approach and mitigate the risks you encounter. The minimum viable product is the product that has sufficient features that can attract The most common methods of risk management can early-adopter consumers and is used to validate be categorized into five approaches: ideas early in the product cycle. This helps in early detection of potential risk and in the 1. Avoidance - This means eliminating the risky development of routes for improvement. activity. This might be ideal for very high-risk 4. Isolating identified risks - In business situations with severe consequences. For development, organizations are aware of the instance, if a company faces a legal risk from a certain vulnerabilities that their businesses certain business practice, it might simply avoid naturally have. (such as security breaches in that practice altogether. banks). In this risk management strategy, 2. Retention - This involves accepting the risk and possibly affected departments coordinate for having a plan to deal with the consequences if it internal and external help to isolate gaps and happens. This is often used for minor risks or processes to increase proactiveness once signs situations where avoidance is impractical. For of the identified risks occur, preventing it from example, a business might accept the risk of damaging the organization. occasional bad weather affecting deliveries but 5. Building in Buffers - Buffers are protective have a backup plan to reroute deliveries or use barriers that may be financial, resource, or expedited shipping. time-based. Buffer helps reduce risks by catering to fluctuations that bring in unforeseen risks. 3. Spreading - This involves spreading the risk 6. Data Analysis - This is a key strategy to foresee among multiple parties. This can be useful for a wide range of risks. The facilitation of a large or complex risks. For example, a thorough data analysis helps in identifying and consortium of banks might share the risk of a prioritizing risks that will aid in the development loan default. of strategies to address, evaluate, and monitor them. 4. Loss Prevention and Reduction - The impact of 7. Risk-Reward Analysis This analysis helps in loss can frequently be reduced in terms of identifying the possible benefits or downsides of frequency and severity when risk cannot be risks before the organization spends time, eliminated. To lower the danger of theft, risk resources, or money on it. This also highlights management, for instance, promotes the the possible cost of lost opportunities. installation of security mechanisms on specific 8. Lessons Learned - Every project completed or audiovisual equipment. Students studying discarded brings lessons to the organization. abroad are required by the university to acquire This is incredibly useful to reduce risks in future health insurance to reduce the possibility of projects. However, it is essential for the team to financial hardship if they need medical attention document, discuss, and develop an improvement overseas. action plan to take on and apply these lessons. 9. Contingency Planning - This is the preparation 5. Transfer - This involves shifting the risk to of back-ups and alternate solutions to another party. This can be done through unforeseen events during the conduct of a insurance, outsourcing tasks to a company that project. With this, companies ensure that they specializes in managing that risk or entering into can respond and recover easily when things do contracts that transfer liability. For instance, a not go according to plan. construction company might purchase insurance 10. Leveraging Best Practices - Best practices are to transfer the risk of accidents on the job site. solutions that have been tried and tested to work multiple times. Industries and projects vary in their best practices, but overall, these are III. Strategy (in Risk Management context) proven effective in reducing risks by providing “hacks” in the decision-making in a certain Types of Risk Management Strategy industry or project. As discussed in the preliminary parts of this report, a Development of Risk Management Strategy risk management strategy is heavily important to work around different types of risk efficiently. There are 1. Identify the Risks Your Organization Faces. different types of strategies that organizations apply, and some of them are as follows: a. Objective: Understand the full spectrum of risks the organization might encounter. 1. Business Experiments - This is the conducting of b. Actions: different “what-if” scenarios to simulate the Understand Business Processes: Gain a potential effects or outcomes of different deep understanding of all business opportunities and threats. It is usually the operations and functions. operations, financial, and marketing Collaboration: Work with departments that conduct these types of cross-functional teams to experiments to look out for possible gather diverse perspectives on potential repercussions of certain business decisions. risks. Historical Analysis: Reverse engineer 2. Theory Validation - This strategy is conducted past risk events to identify their root by gaining experience-based feedback, either causes and contributing factors. through surveys or questionnaires. This is  Industry Monitoring: Stay informed Visualization: Use simple visualizations, about industry-specific risks and charts, and lists to communicate risk emerging trends. information effectively. Systematic Documentation: Keep Standardized Terminology: Socialize consistent and detailed records of common risk management terms across identified risks for periodic the organization for clarity. reassessment. Contextual Communication: Provide context-specific information to help stakeholders understand the relevance of 2. Assign Levels of Severity to Risks risks to their roles. a. Objective: Prioritize risks based on their potential impact and likelihood. 6. Continuously Assess and Adjust Strategies and b. Actions: Plans a. Objective: Keep the risk management strategy Risk Event: An event with potential dynamic and responsive to new and emerging adverse effects. risks. Risk Factors: Conditions that might b. Actions: trigger risk events. Regular Reviews: Continuously reassess Risk Probability: Likelihood of the risk the risk landscape and update risk event occurring. management frameworks accordingly. Risk Impact: Potential consequences of Monitor Emerging Risks: Stay alert to the risk event. new risks and adjust strategies as Risk Timeframe: When the risk event needed. might occur. Adapt to Growth: As the organization evolves, expand or shift risk management 3. Develop Plans to Mitigate Risk approaches to match new challenges. Ensure Effectiveness: Regularly evaluate a. Objective: Formulate strategies to manage and and adjust the risk management mitigate identified risks. approach to maintain its effectiveness. b. Actions: Avoid Risk: Eliminate the risk by changing processes or discontinuing risky IV. Examples and Conclusion activities. Accept Risk: Accept the risk when the Case Studies potential impact is low or mitigation costs are too high relative to benefits. Transfer Risk: Use contracts, insurance, 1. Toyota Motors’ Recall Crisis or other mechanisms to transfer risk to external parties. Background Mitigate Risk: Implement measures to reduce the likelihood or impact of risks In the late 2000s to early 2010s, Toyota Motors faced a through security controls, redundancy, series of recalls regarding millions of produced vehicles training, and enhanced internal controls. due to unintended acceleration (often known as ‘SUA’) issues, which were linked to fatal accidents. 4. Monitor Controls for Effectiveness Identified Risks a. Objective: Ensure that risk mitigation measures are effective and adapt as needed. Risk Identification and Early Warning Systems - b. Actions: Toyota RM systems failed to identify the severity Regular Assessments: Conduct of the SUA issues early on. scheduled evaluations of the Product Recalls and Remediation - Once performance of risk controls. identified, the company initiated large-scale Internal Audits: Perform audits to vehicular recalls to fix the problems. identify any gaps or weaknesses in the Stakeholder Communication - Toyota took controls. scrutiny for its initial slow response and lack of Feedback Mechanisms: Gather input transparency. from employees and stakeholders to improve risk management strategies. Learning Points Address Gaps: Assign responsibility to The necessity of robust quality control appropriate risk owners to promptly processes, risk identification and early warning address identified issues. protocols to detect and effectively respond to defects. The importance of timely and transparent 5. Communicate Risk communication with stakeholders. a. Objective: Ensure all stakeholders understand Application of KAIZEN in quality control the risks and their potential impacts. processes and RM frameworks. b. Actions: Clear Reporting: Develop concise and relevant risk reports tailored to specific Risk Mitigation Strategy audiences (executives, employees, clients). 1. Early Warning Systems and Effective Risk Identification: enhance data analytics capabilities to proactively monitor and analyze  patterns that may indicate emerging risks, such Conclusion : Comprehensive disaster preparedness as unexpected increases in defects and possible plans, rapid and well-coordinated response vehicular issues. mechanisms, and resilient infrastructure are crucial for 2. Product Recalls and Remediation: establish a effective natural disaster prevention. proactive recall management framework that enables swift identification, evaluation, and execution of recalls when necessary, and invest Summary : The collected case studies emphasize that in technology and processes to streamline recall an effective risk management system requires a procedures and minimize disruption to multifaceted approach, involving a thorough risk customers. assessment, proactive mitigation, timely response, and 3. Stakeholder Communication: enhance training transparent communication. It is imperative that an for employees involved in customer relations to organization learn from past incidents to enhance risk ensure that they are equipped to handle reduction and implement an efficient and effective RM inquiries and complaints effectively, to develop a system. transparent and proactive communication strategy to keep stakeholders informed Topic 2: Organizational Sustainability throughout the whole process. I. What is Sustainability? Conclusion Sustainability is a wide term that relates to something’s ability to be sustained or supported over time. In the Timely identification of risks and transparent context of an organization, it refers to a company’s or communication are crucial in maintaining stakeholder institution’s ability to function in a way that ensures trust and mitigating reputational damage, as well as long-term sustainability and success while accounting continuous improvement in quality control and risk for social, environmental, and economic repercussions. management frameworks. This entails implementing techniques that suit current needs while preserving future generations’ ability to meet their own. 2. Typhoon Yolanda in Tacloban Here are the key aspects of organizational Background : Typhoon Yolanda’s northern wall struck sustainability: Tacloban, causing catastrophic damage throughout the - Environmental Sustainability islands of Leyte, where cities were largely destroyed. a. Resource Efficiency b. Energy Efficiency Identified Risks c. Pollution Reduction d. Biodiversity Conservation Risk Preparedness and Mitigation - Prior to the - Social Sustainability typhoon, there were significant gaps in a. Employee Well-Being preparedness and mitigation strategies for such b. Community Engagement a large-scale disaster. c. Diversity and Inclusion Emergency Response and Recovery - The initial - Economic Sustainability response to the disaster was widely criticized for a. Financial Performance being slow and inadequate. b. Innovation and Resilience c. Ethical Practices Learning Points - Governance Compliance The critical need for comprehensive risk a. Regulatory Compliance assessment and preparedness for natural b. Sustainable Leadership disasters. The importance of well-coordinated and rapid I. Sustainability Frameworks response mechanisms between the national and local agencies. 1. The Triple Bottom Line (TBL) - The Triple Bottom Line (TBL) is a sustainability concept that pushes businesses to evaluate not only financial success, but Risk Mitigation Strategy also social and environmental consequences. It broadens the usual reporting framework to account for 1. Comprehensive Risk Assessment - identify three aspects of performance: social, environmental, vulnerabilities and prioritize efforts for and economic. These are commonly referred to as the infrastructure improvements, such as flood three Ps: people, planet, and profit. barriers, storm-resistant buildings, and 1. People (Social Responsibility) evacuation routes. 2. Planet (Environmental Responsibility) 2. Emergency Response & Recovery - develop 3. Profit (Economic Responsibility) clear protocols and coordination between national and local agencies to enhance capacity-building efforts for emergency responders, such as search and rescue training, medical training, and disaster management. 3. Community Engagement & Awareness - conduct public awareness campaigns to educate residents about the risks associated with natural disasters and the importance of community- based early warning systems and communication networks to ensure timely dissemination of critical information during emergencies.  compliance, resulting in long-term value for all 2. The Natural Step Framework - The Natural Step stakeholders and contributing to sustainable Framework is a scientific and strategic approach to development. sustainability that assists companies and communities in understanding and preparing for a more sustainable IV. The Three Key Aspects of Organizational future. It was created in the late 1980s by Swedish Sustainability scientist Dr. Karl-Henrik Robèrt. The framework is built An organization must have strong institutional, on a set of principles and a methodical approach to financial, and moral foundations in order to be planning and decision-making, which ensures that sustainable. All three organizational sustainability are sustainability is integrated into an organization's equally necessary. Even an increase in strength of one fundamental operations and goals. cannot make up for shortcomings in the others. The following are the the three key aspects of organizational sustainability: 1. Institutional Sustainability - An organization that is sustainable has a goal. It has a procedure in place to create strategic plans that specify how it will carry out its mission over a predetermined amount of time based on that mission. Another trait of a sustainable organization is its annual planning process. The 3. ISO 26000 - ISO 26000 is an international standard strategic plan serves as the foundation for annual that establishes principles for social responsibility. plans, which are detailed descriptions of an Unlike other ISO standards, ISO 26000 is not meant for organization’s yearly goals, objectives, and the actions certification, but rather as a guide to assist enterprises it intends to take to achieve them. Being a sustainable in understanding and incorporating social organization is producing an annual plan and budget. responsibility into their operations. It provides a Process is more important than planning to achieve complete framework for organizations to contribute to sustainability. In addition to being proactive, sustainable development by addressing the social, sustainable organizations must be adaptable. In order environmental, and economic consequences of their to be proactive once more in different circumstances actions. and contexts, sustainable organizations are perceptive enough to adjust their plans in response to emerging 4. B Corps Certification - B Corps Certification is a title realities and problems that may arise. given to for-profit businesses that meet high standards for social and environmental performance, 2. Financial Sustainability - The thing that fuels the accountability, and openness. B Lab, a global nonprofit institutional motor is financial sustainability. In order organization that examines companies against its for the organization to fulfill its mission, it will not be rigorous B Impact Assessment (BIA), provides the able to hire the necessary personnel or buy the certification. Companies with B Corps Certification are supplies or equipment without financial sustainability. dedicated to leveraging business as a force for good, A sustainable organization needs to know how much balancing profit and purpose to benefit all money it can make on its own, how much cash it has stakeholders, not just shareholders. on hand at any given time, how much money it will need in the long, medium, and short terms to carry out its operations, and how it will get that money from II. What is Organizational Sustainability? other funding sources. This is called organizational self-reliance. Organizational sustainability is a There are two skill sets necessary for an comprehensive and strategic management approach organization to be financially sustainable: that ensures that an organization's operations, grantsmanship and financial management. resources, and connections contribute favorably to its Grantsmanship is the ability to promote the company's long-term viability, resilience, and success. It entails capabilities, convey its goal, comprehend the demands incorporating environmental, social, and economic and objectives of funders, and, upon deciding which issues into the main company strategy in order to funds to seek, the management drafts proposals or meet present requirements while ensuring future completes forms in a timely manner and correctly, generations' ability to meet their own. To mitigate making sure they are submitted by the deadline. environmental impacts, this approach focuses on Financial management is the ability to forecast maximizing natural resource utilization, decreasing resource requirements and account for available waste, and minimizing pollution. It also includes resources. promoting fair labor standards, maintaining safe working conditions, encouraging diversity and 3. Moral Sustainability - This key aspect is the inclusion, and actively interacting with local essence of what makes an organization work. Moral communities to improve social well-being. sustainability is like the soul of an organization, it is Furthermore, organizational sustainability focuses on intangible. It is a crucial part of an organization to maintaining strong financial performance, promoting survive. An organization is said to be morally innovation, and managing risks in order to respond to sustainable when: changing market and economic situations. Leadership 1. Leader has a clear vision, commitment, and a commitment, stakeholder engagement, openness, and great communicator. continuous improvement methods all help to ensure 2. Employees and staff are also committed to the that sustainable practices are thoroughly established mission. and effectively maintained throughout the 3. Employees and staff feel rewarded. organization. 4. Morale is high within the organization. Organizations can use these efforts to establish 5. Management, leadership, and employees are a positive reputation, mitigate risks, improve committed to behave ethically. operational efficiency, attract talent, identify new market opportunities, and ensure regulatory Having a clear code of ethics being enforced from top management to employees and staff is a very - Optimize Failure important aspect of a sustainable organization. - Build Optimism Integrating of a monitoring system to ensure that - Reassure its customer there will be no unethical doings are present, and clear - Harmonize Resources communication regarding the violations and sanctions - Recovery Plan should be well known and implemented. A foundation of organizational stability is what In conclusion, an organization cannot be sustained provides people with a sense of confidence, security, without the consistent work of all of its employees and and optimism during times of disruptive change in the top management. Developing a vision, putting it into workplace, which, in turn, allows them to keep calm, words, and sharing it are the duties of leaders. act rationally, and adapt effectively as the situation Through the definition of a mission and the creation of evolves. plans, every employee continuously contributes in giving the vision its form. Everyone is constantly fulfilling the goals and objectives of an organization V. Challenges of Implementing Organizational through deliverables, keeping an eye on them, Sustainability assessing them, alerting one another to changes in their surroundings that present opportunities or 1. The main operations of organizations are usually threats, and keeping an eye out for unethical behavior. focused on survival through their profitability, and Sustainable practices are an ongoing organizational not sustainability. Most organizations would rather endeavor; where there are no shortcuts in achieving it. prioritize their survival, rather than sustainability, given that their main mission is to earn, regardless whether IV. Why is Organizational Sustainability Important? their practices are sustainable or not. Also, most organizations struggle to allocate their resources Organizations that practice sustainability are better needed to establish sustainability as they are often equipped to handle problems including social and under pressure to meet their short-term financial environmental issues. Beyond just focusing on how to goals. With this, organizations are forced to prioritize improve the welfare of the external environment immediate financial gains over sustainability efforts. In around the company, sustainability also helps to conclusion, organizations that focus on short-term improve internal processes to improve the overall profitability can hinder their potential of integrating effectiveness of the organization. Sustainability in an sustainable practices into their organizations. organization is a process rather than a goal. Sustainability can help businesses innovate and grow 2. Sustainability is not yet deeply rooted in while also addressing environmental and societal enterprise operations. Most organizations are not challenges that pose significant risks to the future convinced that sustainability can affect their business existence of businesses.Thus, continuing efforts and a operations. To them, the concept of sustainability common goal based on a single overall objective are appears to be vague in terms of practicality. Since necessary to preserve an organization's sustainability. most organizations are already steadily growing, they Sustainability in a business is the company's strategy cannot imagine how shifting to sustainable practices and actions to reduce adverse environmental and could impact their organizations. According to some social impacts resulting from business operations in a organizations, adopting sustainable practices could particular market. disrupt the processes that have already been proven Due to its influence on employee support, investment and tested. They also fear that the top-level decisions, and customer choices, sustainability has management may resist due to the risk of disruption, become an essential component of any organization. additional work, and skepticism regarding the Company executives are positioning their sustainability value. organizations for long-term success and resilience by incorporating sustainability and ESG (economic, social, 3. Organizations/Enterprise Owners are unsure governance) considerations throughout the business where to begin integrating sustainable practices. organizations. Organizations are convinced that sustainable practices can only be embedded in their operations only with the Benefits of Organizational Sustainability assistance of technical business consultants who are experts in sustainability. 1. Cost Reduction - sustainable practices can lead to reduced energy consumption, lower waste disposal According to most organizations, the costs, and more efficient use of resources, resulting in fundamentals of sustainability must be understood significant cost savings. down to its core, like learning the alphabet, in order to 2. Increased Revenue - Sustainability can open new address more complicated concepts of sustainability. markets and customer segments and lead into As most organizations contribute to climate change, potential revenue growth. they admit that it will likely require them technical Attracting and Retaining Talent - sustainability assistance to implement energy-efficient technology programs make employers more appealing, whether in and adopt renewable energy sources, which is equally accepting an offer or remaining at a company. as hard as implementing sustainability within 3. Resilience - sustainable businesses who are organizations that focus on profitability. customer-focused understand the changing needs of their audience better and have a more efficient VI. How to Get Started with Organizational approach to overcoming shifts in their landscape. Sustainability? 4. Brand Loyalty - consumers tend to be more loyal to brands that share their values. According to Miriam Maan, organizations that are committed to their sustainable path are Practicing organizational sustainability can help experiencing a lot of benefits, such as cost savings, organization by: increased efficiency, and positive impact on the - Sharpen its focus environment. But how do organizations take the first - Break Down Performance Barriers steps towards sustainability?  The company follows a comprehensive 1. Create Awareness. Make sure that all the sustainability framework that focuses on three main employees understand why sustainability is important areas: and what impact it can have. Let them be familiarized 1. PLANET with the key concepts and principles of sustainability, “For a better world, A better planet” especially the three pillars: the environmental, social, Samsung Electronics wants to embed and economic sustainability. environmental sustainability in all of its products and lead in creating a sustainable future. 2. Establish Sustainability Policies. Before In September 2022, the company announced establishing sustainability policies, make sure to their New Environmental Strategy with the aim of conduct a sustainability assessment. Evaluate the addressing global environment issues through their current operations to identify areas where you can innovative technologies. This strategy was developed improve sustainability. Then, set a clear and based on the company’s commitment to achieve net measurable sustainability policy that sets the direction zero by the year 2050. of the organization. Set concrete and achievable goals The New Environmental Strategy adopted by such as reducing energy consumption and minimizing Samsung Electronics has the following targets: waste. Make sure that these goals are specific, - Net Zero measurable, achievable, relevant, and time-bound - Resource Circularity (SMART). - Technological Innovation 3. Engage Employees. Create a culture of a. Climate Action - Being a global ICT commitment and responsibility among all employees. manufacturing company involved in a wide Make sure to communicate the goal and process of the range of electronic components, the company sustainability initiatives to build support and is taking a climate action towards achieving its collaboration. environmental sustainability targets. The company is expanding its use of renewable 4. Measure and Evaluate Continuously. Track your energy, reducing process gasses, and progress using the metrics defined in your strategy. reinforcing process energy efficiency, through Regularly review your actions and outcomes to ensure the following: you’re on track. Use this data to make adjustments - GHG Emissions Management: The and refine sustainability policies. Transparency and company continuously monitors GHG accountability are crucial to maintaining credibility. emissions generated from its global business sites. 5. Collaborate with Stakeholders. Seek collaboration with other organizations, industry associations or local communities. Sharing knowledge and experiences can be valuable in finding innovative solutions and increasing impact. Highberg | The first step to sustainability in your organization. (n.d.). https://highberg.com/insights/the-first-step-to-sustai nability VII. Sample Case - Analysis of Climate Risks and Opportunities - Organizational Sustainability, in its real-world The company identifies the financial and application, covers a wide range of practices and strategic impact of climate change-related initiatives adopted by companies across various risks, and then establishes response measures industries. One of the best examples is the based on each risk’s magnitude, and makes sustainability initiatives of Samsung Electronics. decisions accordingly. The Samsung Electronics Co., Ltd. is a South Korean multinational major appliance and consumer electronics manufacturing corporation and a subsidiary of the Samsung Group. It is the world’s largest manufacturer of smartphones, and one of the world’s largest semiconductor memory manufacturers. The company is also a major manufacturer of electronic components, such as lithium-ion batteries, semiconductors, image sensors, camera modules, and displays for big client companies, such as Apple, Sony, HTC, and Nokia. With the growing environmental and socio economic risks, as well as geopolitical uncertainties, the company is being reinforced by its beliefs that sustainability needs to be a key force in driving competitiveness and technological innovation. In its sustainability initiatives, Samsung Electronics follows a sustainability framework that integrates ESG (environment, social, and governance) factors in its business operations, committed to embedding sustainability to its business operations and product strategies through its product life cycle from design - Expansion of Renewable Energy Use: The and development to manufacturing, utilization, company engages in various activities to takeback, and recycling. transition to 100% renewable energy at all of  its business sites by 2050. The total amount of renewable energy use in 2022 stood at 8,704 GWh – a 65% increase from the previous year, reaching a 31% transition rate. - Applications of Eco-Packing by Product Category: The company utilizes recycled expandable polystyrene (EPS) cushions in the packaging of its major TV models, while the packaging box for Galaxy S23 series is 100% - Value Chain Carbon Reduction: The company made from recycled plastic. The plastic films strives to reduce carbon emissions across all previously attached to the front and back of the stages of the product life cycle including product were fully replaced with 100% recycled distribution, sales, and utilization. The company paper as well. plans to utilize ultra-power-saving technology - Extending Product Life Cycles: The company for semiconductors, which is expected to works to extend its products’ life cycles in order drastically reduce the memory-related power to reduce the use of resources and carbon consumption of data centers and mobile emissions, by focusing on enhancing their devices from 2025. durability, repairability, and upgradability. - Collecting and Recycling E-Waste: The company has collected a cumulative sum of 5.69 million tonnes of e-waste from 2009-2022 through its e-waste collection system operated in over 50 countries. The company plans to expand the reach to more than 180 countries where its products are marketed by 2030 to increase the cumulative amount of collected e-waste to 10 million tonnes by 2030 and 25 million tonnes by 2050. b. Circular Economy Samsung Electronics is driving progress toward a circular economy by using recycled and recyclable materials, and resources from discarded materials for its production, creating a loop of resource circularity in collaboration with customers, suppliers, and various partners. - Using Recycled and Recyclable Materials The company has come up with a sea-driven innovation that involves discarded plastic fish nets C. Clean Tech Ecosystem repurposed into Galaxy smartphones. Approximately 640,000 tonnes of plastic fishing nets are discarded Samsung Electronics aims to take the lead in creating into the ocean every year, which poses a severe threat technologies that are environmentally responsible, to the marine ecosystems. The high-performance while enabling an ecosystem that fosters clean and polyamide resin recycled from these materials has responsible technologies. The company fosters been applied to smartphones including Galaxy S22 collaboration with universities, research institutes, and series, S23 series, Z Fold4/Flip4, Buds2 Pro, Galaxy start-up communities to find solutions for global Book3 series. environmental challenges and invest in innovative ideas. - Carbon Capture Technologies: The company Air Science Research Center (previously Carbon Capture Research Institute) in September 2021 to develop and commercialize technologies for capturing and utilizing carbon emitted from its semiconductor manufacturing sites.  same amount of water consumed back to local communities. The company annually conducts a water resource risk assessment to determine whether the locations of its business sites are within regions affected by water stress or water scarcity and develop countermeasures. The company also continually reduces its water consumption by maximizing the reuse of water used for manufacturing. - Circular Economy Lab: The company established the Circular Economy Lab in July 2022, which specializes in research on material recycling process and technology, and the application of recycled materials to products to maximize resource circularity. - Air Pollution Management: By 2040, the company aims to restore air to their natural state with minimal environmental impact prior to their discharge. They apply the best available technology to treat pollutants generated during manufacturing and manage emissions using its multi-tier treatment system. - - Chemical Substances Management: The company strives to minimize the impact of harmful substances that may enter its - Micro Plastic Reduction Technologies: In products, including chemicals used in the collaboration with Patagonia, the company has frontlines of manufacturing, on the health of developed a wash cycle that reduces microfiber its customers and employees. emissions in their washing machines and an external microfiber filter that can be applied to existing washing machines. 2. PEOPLE “Future-forward, together” D. Sustainability in Operations Samsung Electronics believes in the importance of Samsung Electronics focuses on recycling resources fulfilling social responsibility and creating a better life throughout the product development and for all. The company values its people and manufacturing process, as well as developing co-prosperity with its partners. It is striving to technologies that remove pollutants. empower the future generation and the society through innovative technologies and improvement of - On-Site Waste Management: The company digital experience. strives to advance a circular economy by uncovering the added value of waste and developing recycling technologies. a. Human Rights - With its business philosophy “People First”, respect for human rights is embedded in the company’s business operations. Samsung Electronics continues to take steps to establish a safer and healthier work environment for its people. - Labor and Human Rights Framework: The company follows a Labor and Human Rights Framework that consists of policies, due diligence, access to remedy, stakeholder engagement, transparency & reporting and governance, which is the foundation of its approach to respect human rights. - Water Resource Conservation: The DX Division of the company has set a goal of 100% water resource restoration by 2030, returning the  b. Human Resource Management - The company - Empowering Women in the Workplace: The fosters a continuous learning and development company strives to inspire employees to reach culture for its employees by actively supporting their full potential through access to equal their professional and career growth. opportunities. It runs a variety of programs and policies to ensure gender equality in recruiting - Talent Development: The company new hires and in order to help female allows its employees access to a range employees return to work and successfully of capacity-building programs. The build their career after taking leave for Samsung Semiconductor Institute of pregnancy and childbirth. Furthermore, the Technology (SSIT), launched as an company strives to increase women in in-house semiconductor technology leadership positions by setting internal targets school in 1989 with the aim of and closely monitoring the share of women in enhancing the technological capabilities the recruitment, promotion, and retirement of of employees, was officially our employees. acknowledged as a university in 2001 and now offers four-year bachelor’s - Supporting Employees with Disability: The degree programs in the areas of company strives to provide an inclusive work equipment, infrastructure, and display. environment and expand the employment of persons with disabilities by ·enhancing accessibility of facilities, procuring services from companies registered as a standard workplace for persons with disabilities, and identifying functional roles that can benefit from the experiences and perspectives of employees with disabilities d. Tech for All - Samsung Electronics provides inclusive products and services that enable users under diverse conditions to enjoy a digital lifestyle that goes beyond convenience. - Accessibility: The company has an Accessibility Council that serves as a platform that gathers planners, designers, and developers of different organizational units to work on improving accessibility for all customers using our products and services. - Organizational Culture: The company - Privacy Protection: The company ensures that strives to foster a constructive personal data are collected in a transparent organizational culture founded upon the manner and that the collected data are handled values of diversity and inclusion, where safely. employees are able to immerse - Security: The company ensures that users can themselves and grow. The company enjoy their digital environment with their minds promotes a culture of mutual respect, at ease by continuously strengthening their and continuously makes improvements security system against complex and to its work systems by allowing intensifying threats. employees to have more control over - AI Ethics: The company aims to design their schedule and by adopting flexible user-centric products and services that are and efficient programs to ensure easily accessible, safe, helpful, and work-life balance. continuously evolving through learning based on AI technology. c. Diversity, Equity, and Inclusion - Samsung - Open Innovation: The company believes that Electronics believes that providing a diverse, equitable, transformative innovation cannot be achieved and inclusive workplace to the employees is the key to by a single company alone. It requires innovation and progress. The company strives to raise open-minded collaboration with multiple an organizational culture that brings together people partners. from different backgrounds, motivating them to create a better tomorrow for the customers, partner companies, and local communities. e. Sustainability in Supply Chain - Samsung Electronics actively cooperates with their suppliers to - Promoting Diversity, Equity, and Inclusion: The achieve mutual growth and establish responsible company ensures that all of its employees, supply chains. The supply chain operations aim to both our current and prospective, are given reinforce the suppliers’ capabilities while protecting equal opportunities based on its labor and human rights and enhancing their nondiscrimination policy. The company does environmental, health, and safety standards. not discriminate against employees based on their gender identity, race, ethnicity, - Supply Chain Management: The company nationality, religion, age, marital status, sexual thoroughly reviews potential suppliers' orientation, among others or in HR matters performance in five areas: (1) Purchase and such as job assignment, promotion or Quality; (2) Environment and Safety; (3) Labor compensation. Instead, it strives to respect and and Human Rights; (4) Eco-Partner protect the human rights of its employees. Certification; and (5) Finance. - ESG Audit and Capacity-Building: The company  requires all of its suppliers to comply with the implemented by the Board with the heads of local laws of their respective countries as well divisions and all major business units as the Samsung Supplier Code of Conduct participating as executive directors. Meanwhile, based on the RBA Code of Conduct in relation ESG issues are overseen by the Sustainability to human rights, environment, health and Committee. safety, and ethics. To ensure compliance, the - Compliance and Ethics: Compliance with laws company operates an integrated work and ethical standards is a top priority business environment management process, consisting principle at Samsung Electronics. The company of self-assessments, on-site audits, and conducts business in compliance with laws and third-party audits. ethical standards to fulfill its social - Environment Health and Safety and GHG responsibilities and provide a fair and Emissions Management: The company works to transparent organizational culture. reduce its environmental impact, mitigate the generation of harmful substances, and improve workplace health and safety in cooperation with our suppliers. - Partner Collaboration: The company aims to achieve shared growth with its suppliers in a way that strengthens its supply chain competitiveness, as well as its sustainability. - Responsible Minerals: The company strives to avoid human rights violations, such as child labor and sexual violence, during the mining process and to protect the health and safety of miners. f. Empowering Communities: In line with its Corporate Social Responsibility vision “Together for Tomorrow! Enabling People”, Samsung Electronics is committed to fostering talents and building a better world. - Corporate Social Responsibility: Under the CSR vision, the company strives to provide equal access to education for the youth. VIII. Conclusion Organizational sustainability is the ability of an organization to operate in a manner that ensures long-term viability. It is a balance between governance, environmental, and social factors, integrated in the management strategies and operational initiatives of an organization. Throughout this topic, three main points emerged: The company’s CSR activities involve empowering 1. Holistic Approach - Organizational young minds to drive innovation and positive social sustainability demands a holistic approach, change by capitalizing on the company’s technology, because all aspects of the business must be expertise, and resources to develop both soft and aligned with the organizational goals in order to technical skills. achieve long-term success, all while positively contributing to the society and environment. With the integration of ESG factors into the - SME and Start-Up Support: By sharing their organizational strategies, companies can knowledge and expertise, the company helps ( establish sustainable practices and values to Small and Medium Enterprises, as well as effectively manage risks and build strong creative startups to achieve success. relationships with the stakeholders. 2. Long-Term Value Creation - Organizations are 3. PRINCIPLES able to focus on establishing initiatives and “Accountability toward a Sustainable Future” implementation practices that can provide positive results for the business, through Samsung Electronics fosters a transparent and healthy investing in innovative technologies, which can organizational culture based on the principles of drive sustainable growth and long-term compliance and ethics. Simultaneously, the company profitability. strengthens its governance to ensure it embeds sustainability in its products and services. 3. Stakeholder Engagement - An organization with sustainability engages all of its - Corporate Governance: The company’s stakeholders, improving their products and corporate governance ensures that the services, and enhancing customer experience executive management is effectively monitored and satisfaction. Moreover, it allows by independent directors who have diverse organizations to attract and retain talents by expertise and can remain objective. fostering a supportive working environment for Responsible management practices are the employees. Meanwhile, it boosts the  confidence of investors, since sustainable - proactively identifying internal and external risks practices often lead to better financial and vulnerabilities and developing strats to performance and lower investment risks. mitigate Overall, organizational sustainability allows a company to contribute positively not only in the organization 2. Agility and Adaptability itself, but also in the environment and society. - Adapt to changing circumstances and seize Organizational sustainability is about creating a emerging opportunities quickly resilient organization that thrives economically and contributing positively to society and the environment. 3. Resourcefulness and Redundancy It requires integrating sustainability initiatives into all - Emphasizes the need for diverse resources and aspects of the company’s strategy and operations, redundancy which only cannot ensure its long-term success, but also contribute to the broader goal of sustainable development. 4. Collaboration and Partnerships - Foster strong relationships with stakeholders Topic 3: Organizational Resilience (customers, suppliers, govt. agencies, local community) I. Introduction 5. Adaptive Leadership a. Overview of Risk Management - Promote culture of resilience, provide clear - a proactive approach to finding out and direction, foster open communication, empower controlling threats that may lead to unfavorable employees, and make informed decisions outcomes in the achievement of organizational goals. 6. Learning and Knowledge Management - process: identify possible risks, assess in terms - Embrace culture of learning and of likelihood and amount of harm, finally come knowledge-sharing up with control - risk management assists orgs in addressing b. Key Concepts of Organizational Resilience uncertainty; reducing threats and enhancing opportunities 1. Business Continuity Management - developing strategies and plans to ensure critical b. Importance of Organizational Resilience business functions can operate or recover quickly - managing processes that deal with detection, during disruptions (backup system, data preparation, response, and adaptation to protection measures, recovery protocols) gradual unsteadiness and abrupt instability (for org to survive) 2. Crisis Management - Business world is VUCA environment (volatile, - effectively responding to and recovering from uncertain, complex, ambiguous), what unexpected and high-impact events (crisis businesses control and how they address risks is response teams, communication protocols, critical; may include natural catastrophes, cyber decision-making frameworks to mitigate impact) threats, econ shifts, etc. - Not only preparing, withstanding, and recovering 3. Risk Management negative shocks; also rebuilding and enhancing - identifies, assesses, and manages potential risks competition affecting operations (risk mitigation strat, - enable org to navigate thru change, crisis and monitoring risk, adapting risk man practices) disruption, ensure adaptability and ability to bounce back 4. Change Management - Operate over long-term horizon and integrate - systematic approach to managing and resilience into strat framework = better supporting organizational change (embracing positioned to thrive and succeed change, effective communication of purpose and benefits, supporting employees) II. Understanding Organizational Resilience 5. Organizational Culture a. Organizational resilience - resilient culture = values agility, adaptability, - org’s capacity to anticipate, respond to, absorb, collaboration, learning, and innovation; and recover from disturbance/disruptions while encourages employee to take calculated risks, preserving fundamental purpose, values, and learn from failure, continuously improve integrity - involves developing adaptive strat, robust III. Organizational Resilience: Three Key Domains systems, and resilient culture a. Operational resilience Key Features of Organizational Resilience - Resilient org = has full understanding how it is run and the environment where it operates 1. Anticipation and Preparedness (self-aware)  - Operational resilience depends on clear b. Risk Assessment Methods intelligence and analysis of outputs and inputs of products, processes, and people 1. Quantitative Methods - use numerical data to assess - requires gathering insight and taking informed, risks, allowing for precise financial quantification tactical and strategic decisions in a timely (statistical analysis, econometric models, monte carlo manner simulation, stress testing) - Having clear vision and working towards it 2. Qualitative Methods - rely on expert judgment and b. Supply chain resilience subjective assessment to understand risk impact, often - ability to quantify and mitigate supply chain risks categorizing risks in high, medium, low scales (risk throughout the procurement, manufacturing, identification workshops, scenario analysis) transportation and sales lifecycle - reliance on extended supply chains, contract 3. Semi-quantitative Methods - combined quanti and manufacturers and globalization of operations quali methods: numerical ratings to assign score to risks can cause negative impacts, including business with analytical rigor and subjective insight interruption, tarnished reputation and damaged brand value. 4. Asset-based Methods - identify and assess risks to - By building resilience and mapping out specific assets such as hardware, software, and enterprise supply chain risks, organizations limit information downside risks and capitalize on opportunities. - resilient organizations have very good supply 5. Vulnerability-based Methods - identifying known chain traceability and are in a strong position to weaknesses in systems or processes and then assess tell their supply chain story. potential threats that could exploit these vulnerabilities. They can explain: What the issues are, and where 6. Threat-based Methods - Evaluate the broader risk Improvement made or plans to be made landscape by examining potential threat vectors and How their supply chain aligns with their corporate their implications values. V. Mitigation Strategies c. Information resilience - A resilient organization must manage its a. Risk Mitigation Techniques information – physical, digital and intellectual property – throughout its lifecycle, from source 1. Risk Avoidance - steering clear of activities or actions to destruction. that introduce risk - Information is key in maintaining trust and transparency across a supply chain and it is an 2. Risk Transfer - shifting the risk to a third-party essential element within an organization in managing performance, ensuring due process 3. Risk Acceptance - accepting the risk is best course of and protecting the quality of the end product. action, mitigation exceeds potential loss (high risk, high - orgs should ensure information security is reward) embedded into their organizational behavior – supporting rapid and effective decision-making 4. Risk Reduction - focuses on reducing the likelihood or in a safe environment. impact of the risk IV. Identifying Risks 5. Risk Monitoring - monitoring of risks and effectiveness of mitigation measures, ensure org can a. Types of Risks respond promptly to any changes 1. Market risks - involves changes in market conditions b. Implementing Resilience Strategies that can affect org’s performance (demand fluctuation, new competitors, economic downturns) 1. Developing a Comprehensive Framework - establish robust risk man framework, outline roles, 2. Operational risks - arise from internal processes, responsibilities and processes tailored to needs systems or external events that disrupt operations (machinery breakdowns, supply chain disruptions, 2. Identifying and Assessing Risks - conduct risk human errors) assessments to understand risks and impacts (SWOT, PESTLE, risk matrices) 3. Legal risks - legal actions or compliance failures (lawsuits, regulatory fines, breaches, contractual 3. Continual Monitoring and Evaluation - implement obligations) systems for ongoing risk monitoring and evaluation to adapt to changing risk environments 4. Strategic risks - uncertainties in strategic decisions (entering new markets, launching new products, major 4. Building a Risk-Aware Culture - foster culture where investments failing to meet expectations) employees are encourage to identify and report risks 5. Leveraging Technology and Data Analytics - use advanced tech and data analytics to identify emerging risks and automate risk assessment processes 6. Training and Education - invest in continuous training and education for employees to enhance their risk management skills and knowledge VI. Building a Resilient Culture - characterized by ability to adapt, succeed, and recover in the face of challenges and disruptions - a culture that values flexibility, innovation, and continuous learning to effectively navigate uncertainty and setbacks - employees are encouraged to embrace change, take calculated risks, and learn from failure 3 Dimensions - leadership fosters open communication, providing support, and instilling purpose 1. Leadership and Strategy - Org resilience is increased when org a. Leadership’s role demonstrates leadership and intentionally implement strategies Be Disruptive A shared vision - members/employees understand - constantly assess the performance of their purpose, vision and values organization and be able to deal with external Understands context - comprehensive understanding problems that arise. of both the internal and external dimensions of the - "overcome" the disruption by compromising their organization. own behavior Effective Leaders - leaders are effective and ADAPT: empowered, trusted, respected, and leadership is Anticipate – demonstrate contextual intelligence to distributed in the organization make faster decisions and create strategies. Drive – empower individuals by fostering a sense of 2. Culture and Behaviors purpose. - Org resilience is increased when when there is an Accelerate – manage the flow of information to intentional effort to ensure a healthy culture produce constant innovation. Healthy Culture: core values and behaviors that Partner – connects and establishes relationships support the health and welfare of its between functional and organizational domains. members/employees, foster creativity and empower Trust – bringing diverse people together and members/employees to communicate effectively. establishing their commitment. Shared Information: Information and knowledge is - self-disruptive leaders always looking for better fit shared to enable effective decision-making, learning ways to lift themselves and their teams from experience Continually Improves: Performance is continually Develop an Inclusive Mindset monitored, continual improvement is encouraged - open the awareness of their employees by ensuring psychological safety at all levels 3. Preparedness and Managing Risks - Employees must believe that it is safe to take - Organizational resilience is increased when risks and express their ideas and opinions org intentionally manages risk and prepares for the Factors helping leaders to become more inclusive: unexpected Emotional resilience - ability to stay composed in the Available Resources: Resources are adequate and face of difficulties and disagreements. available when needed Self-assurance - exudes confidence and optimism. Manages Risk: Risk is managed throughout the Flexibility - tolerates ambiguity and is adaptable to organization diverse needs. Manages Change: Ability to anticipate, plan, and Inquisitiveness - being open to differences, curious, respond to changing circumstances and incidents. and empathetic. Authenticity - having humility and established trust 6 Behaviors: How Resilient Organizations Behave in the face of opposing beliefs. 1. Adaptive and Flexible b. Organizational Resilience Model - org is accepting of ever-increasing uncertainty - Common attributes and behaviors demonstrated and change. Org and people have the ability to by organizations that have survived and thrived change, evolve, and adapt during times of change and uncertainty. 2. Resourceful, Creative, and Innovative - able to rapidly find different ways to achieve their goals or meet their needs under changing circumstances, transcend traditional ideas, roles,  and p atterns, fosters creativity and innovative VIII. Measuring and Managing Resilience ideas 3. Inclusive and Collaborative a. Regulatory Compliance and Standards - seeks collaboration with and engagement of its interested parties to enable working together towards a Example 1: Organizational Resilience Management common purpose Systems (ORMS) 4. Prepared, Robust, and Redundant - Approved by UN assembly as emergency - Intentional actions exist to work out the details management framework of a plan of action, robust systems are - Effective ORMS engage all disciplines involved in well-conceived, constructed, and managed to emergency management, sharing the goal of withstand significant impacts without damage mitigating impacts of emergencies or loss of function. Spare capacity is purposely - Enables org to identify, assess, and manage risks created to withstand disruption, extreme to the achievement of strategic, operational, pressure, or surge in demand. tactical, and reputational objectives 5. Aware and Reflective - Provides framework to develop policies and - has the capacity to anticipate future conditions objectives, taking into account: org and supply through situational awareness, horizon-scanning, and chain context, legal obligations, stakeholders information gathering. Org learn from past experiences needs, uncertainties, protection of assets. 6. Diverse and Integrated - recognizes the importance of the diverse nature Example 2: ISO 2230 and characteristics of its people ( range of capabilities, - International standard for business continuity information sources, and technical elements) management (BCM) - Helps organisations identify and prioritise VII. The Organizational Resilience Improvement threats Continuum - Allows to implement BCM effectively so they are - guide organizations in enhancing their resilience ready to respond and recover from incidents over time Example 3: ISO/IEC 27001 - Best-known standard for information security management systems (ISMS) - Provides guidance for establishing, implementing, maintaining and continually improving an information security management system. - promotes a holistic approach to information security: vetting people, policies and technology. b. Performance Metrics 1. KPIs for Resilience - incident response times, recovery Typical stages: times, downtime duration 1. Reactive 2. Benchmarking - compare resilience performance - respond to disruptions as they occur without against industry standards or peer orgs pre-planned strategies. 2. Planned c. Continuous Improvement Strategies - start developing formal plans and procedures to handle disruptions. 1. Feedback and adjustment - feedback to refine and 3. Proactive optimize resilience strategies - merely planning to actively preventing and 2. Technology and real-time visibility - tech for real-time mitigating risks. tracking enhances ability to respond to disruptions 4. Adaptive 3. Tools and techniques - simulation and drills to test - develop the ability to adapt to changing response plans and areas for improvement conditions and unforeseen events. 4. Regular review and reporting - review metrics and 5. Resilient report findings to ensure transparency and facilitate - can quickly recover from disruptions and improvement maintain continuous operations. - graph showcases different stages of org resilience IX. Case Study: Yonghui Supermarket journey - org resilience as “necessary evil”: only adopting for “How can retail companies maintain organizational regulatory obligations or supply chain tender resilience in the face of a crisis?“ requirements (weak commitment) - turning crisis into opportunities - whole commitment to org resilience: experiencing - prioritizing competencies cultural change, continual performance improvement - adapted to lockdown through “full contact retail” and and sustainable growth online and offline operations - answered the surge in online delivery orders by Topic 4: Approaches to Risk Management encouraging families of delivery staff and store Introduction assistants to help with deliveries - front-line purchasing staff returned to production sites The risk management approach describes the and wholesale markets to update commodities and specific risk management techniques and adjust stock standards to be applied during the project, and the responsibilities to provide a good and consistent X. Future Trends in Organizational Resilience risk management procedure. Approaches in Risk Management: a. Evolving risk landscape in business - climate change, cyberwarfare, pandemic, etc., are ever 1. Risk Avoidance: The most basic strategy is evolving threats. called risk avoidance. Under this approach, - ability to adapt is important the company avoids taking on risks as much - continuous risk assessment, scenario planning, as possible. However, this strategy is not proactive solution finding, landscape risks identification viable for many companies because most = resistance activities have a certain amount of risk attached. b. Acceleration to Process Automation - automation streamlines business continuity 2. Diversification: Diversification is one of the - automation ensures quick and efficient response, oldest and most basic strategies in risk reduces downtime management. Under this approach, the company deliberately tries to engage in c. Leveraging new technology and tools business activities that are very different - tools help diagnose issues and create report quickly; from one another. The problem with this makes organization flexible and decide based on policy is that it cannot be applied everywhere. knowledge It can only be applied in conglomerates that operate in diverse businesses. d. Adoption of digital transformation - agile tech prevalent for org resilience and business 3. Risk Transfer: There are many external continuity parties such as insurance companies who are - resiliency hinges on agility and adaptability willing to assume risks in return for a fee. - digi transformation help orgs to navigate uncertainties However, insurance policies cannot be found for every risk. e. Cyber resilience fortification - proactive and adaptive approach to cyber resilience is derivatives - are financial instruments essential to recover from cyber attacks where the underlying cash flow - AI and machine learning help in threat detection, changes based on the occurrence of response actions, and risk management certain risky events. Derivatives help companies to contractually transfer f. Organizational r