Risk analysis is an essential practice in all business environments. What are the implications of option 1 versus option 2? Or even options 3, 4, and 5?! The key to risk analysis is to identify factors that have possible impact and assign a risk value to each. Savvy managers know how to account for risk, limit risk, and live with a certain amount. Don't end up on the wrong side of the risk equation!
For this assignment, you will read and analyze the Escatsa case study. Escatsa is a Spanish company that manufactures steel sheet jobs for the automobile industry. You must decide where the organization should relocate their operations. Apply the balanced scorecard heat map approach from the Risk Management and the Strategy Execution System article and make an informed and strategic recommendation on which course of action the company should pursue.
Write a 3 page Business Brief that details your recommendation for Escatsa based on your risk analysis. Include the heat maps as an appendix.
1. Summarize the key business challenge and options Escatsa must weigh. 2. Define level 1, level 2, and level 3 risks and provide one example of each type of risk at Escatsa, delineated separately by the automotive and ink jet industries. Hint: For the level 1 risk, review the organizational chart exhibit. 3. Use risk agents exclusive to the automotive and ink jet industries to build two heat maps as follows: a. Level
2 heat map with a minimum of three risk agents for the automotive industry b. Level 2 heat map with a minimum of three risk agents for the ink jet industry 4. Recommend a course of action based on your heat map risk analysis and explain your rationale. *Note: A complete risk assessment would include development of heat maps for all three levels of risk. For the purposes of this assignment, you will only create heat maps for level 2 risks and use that information to inform your decision.
Recommended format and organization for the Business Brief Business briefs are often used to convince and inform clearly and concisely in the business environment. For this assignment, your business brief should state its purpose, detail your findings, and provide a persuasive informed recommendation based on your risk analysis and conceptual understanding. 1. Include a cover page containing the title of the assignment, your name, professor's name, and the course title and date. (The cover page and the reference page are not included in the required page length.) 2. Single spaced, professional font (Times New Roman or Ariel), 10-12 font size. 3. Headings used to identify main topics and subtopics.