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Robl

edo,My
leneJav
eL.
BSAI
S-3A

AEBC-323Gov er
nance
Module3:RiskManagement
Lesson1:Defi
nit
ionandI
mport
anceofRi
skManagement

I
nstr
ucti
ons:Browse the net,look for compani
es and det
ermi
ne t
he r
isk
managementt
ooltheyar
eusingtoensur
eriskmit
igat
ion.

Toy
ota

Int oday '


scompet i
ti
vebusi nessenv i
ronment ,riskmanagementsy stemshav e
become a r equirement tot he cor porat
e management st ruct
ures'f unct i
onal
peculiarit
ies.Ri sk managementas t he process ofi denti
fyi
ng,anal yzi ng and
respondi ngt or i
skf actor
sdur i
ngt helifeofapr ojectandi nthebestinterest sofits
objectives,accor di
ngt oDi nu( 2015).Oneexampl eofacompanyt hatusesr isk
managementt ooli n or
dert o ensuret he ri
sk mi t
igat
ion i
st he Toy ota Mot or
Corpor ation.
Toy ot aMot orCor porat
ionisamongt hewor l
d'slargestautomotive
manuf act urers.Thecompanydesi gnsandmanuf acturesadiverseproductl ine-up
thatrangesf rom subcompact st oluxuryandspor tsv ehicl
estoSUVs, t
rucks,
minivans, andbuses.

RiskManagementPr ocess
Ri
skManagementt akesal argeperspecti
veoni dent
ify
ingr i
skst hatcouldcause
harmt oanor gani
zat
ionorfailst omeet sitsobj
ect i
vesandst rategies.Duet othe
uncert
ainty,companiesshouldbeawar eofsev eralvari
oust ypesofr iskstheymay
faceoverthecour seoftheproject.TheToy otaCompany '
sf undament alapproachis
torecognizeandassesst henumer ousr i
sksthatar i
sedur i
ngbusi nessoper at
ions,
assure management saf et
y,and cr eate shar ehol
ders per f
ormance by onl y
commi t
tingitselft
ori
skwithi
nar easonableandmanagedr ange.

Ri
skMi t
igation
ToyotaI mpl ementandest abl i
shed theRi skManagementBasi cPol i
cyina
concr etemannerandconductt headmi nistr
at iveoperat
ionsoft heI ntegratedRi sk
ManagementCommi ttee.Basedonappr oachessuchast heCOSO- ERM f ramewor k,
theyar e addressing risksf aced byt he gr oup asa whol e byest abli
shing and
rei
nf orcingconsol i
datedr iskmanagementsy stemsbywor ki
ngcl osel ywi t
heach
depar tmentandgr oupcompany .Regar dingt hemanagementofr isks,thecompany
regularlymaintaint hegoodgov er nancet owar dst hei
rcustomers, toensur et hatrisk
mitigationiswel limplement .Toy otat hi
nksofr isksasanintegr
at edpar tofplanning,
decisionmaki ng,andoper ati
onalpr ocesseswi thadefi
nedst ruct ureofr olesand
responsi bi
li
ti
es.

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