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My Reading Part in this article - Coggle Diagram
My Reading Part in this article
0.Toward proactive risk management
(is)A method based on adherence to
minimum supervising standards
and
reducing the financial loss
and
the risks.
1.companies cannot
shape an optimal risk prfile according to their business models
2.can not adequately
prevent/avoid a fast-moving crisis
If use
passive stance
1.Strategic decision making
can enhance
the longerterm resilience
of a company’s business model, particularly in
volatile markets
or
externally challenged industries.
trade-offs
(such as entering markets where the business model is superior to the competition), creates
more value and better shareholder returns
Flexibility
is
empowering
in a dynamic marketplace.
It talks about
companies use
hedging strategies
to insure against market uncertainties. Ex:
Airlines,strategic investing
2.Debiasing and stress-testing
help senior executives consider
previously overlooked sources of uncertainty
to judge whether the company’s risk-bearing capacity can
absorb their potential impact.
It mianly talks about that the item can
3.Higher-quality products and safety standards
Investments in
product quality
and
safety standards
can bring signicant returns
reduced damage
and
maintenance costs.
Ex:At one
international energy company
, improved safety standards led to
a 30 percent reduction in the frequency of hazardous incidents.
By using the standards, energy sectors could
4.Comprehensive operative controls
These can lead to
more efficient
and
effective processes
that are
less prone to disruption
when risks materialize.
In
the auto sector
, companies can ensure
stable production
and
sales
by
mitigating the risk of supply-chain disruption.
Ex:Following
the 2011 earthquake
and
tsunami
, a leading automaker probed
potential supply bottlenecks
and
took appropriate action
.
Specifically
5.Stronger ethical and societal standards
To achieve standing among
customers, employees, business partners, and the public,
companies can apply
ethical controls
on
corporate practices
end to end.
a program of better ethical standards can
achieve significant returns
in the form of
heightened reputation
and
brand recognition.
Ex: Customers are increasingly willing to pay
a premium
for products of companies that adhere to
tighter standards.
Generally,