Enterprise Risk Management Case Study Viope

As mentioned in the case study, research was purely qualitative, based on an interview. The first one was at Viope Office with the Sales Manager and then followed by one with the chairman. According methods were identified as to how the company was aware of the different risks, how they assessed and managed it through use of strategies and risk management techniques.Acknowledging and understanding risks associated with business are vital for any company. According to the discussion in the interviews, only business risks were described; not risks that included hazards like natural disasters or natural environmental changes. According to the chairman, the company recognizes and manages risks by the project base, after the operation has been split

Nevertheless, a risk report would be useful for Viope, along with Viopes regular weekly meetings and brainstorming sessions, to collect information and opinions from all the employees based on the probabilities of different risks and their positive or negative outcomes. Therefore leading to a decrease in workload for managers in Viope. Models and techniques followed by both the companies are different. Like mentioned Viope uses PRM whereas Palta uses ERM, therefore the level of risk awareness are different. The employees in Palta Oy recognize risks and have a deeper understanding of it in a wholly view because of the use of monthly risk reports with the ERM model. Therefore the employees are well trained for any potential risk. However in Viope, the employees comprehend risks through shared experiences. Their knowledge is practical with regards to risk management but not organized or systematic. Palta uses ERM model to manage their risks. The organization operates on the combination of the internal environment (based on information derived from employee’s reports) and the external environment (based on information derived from management measurement). Based on current operation conditions, threats are identifies. These risks are then measured and assessed by the

Viope has around two to three specialized departments like the technical sales and marketing department, however Tekno has more than that, moreover Tekno has specialized departments to deal with risk. Whereas Viope does not have a special team that deals only with risk management. And due to its limited funds, recruiting a special risk management team would only increase costs for Viope. In addition to this, Viope believes that assessing the risk as a team will increase awareness for all the project members and will encourage their involvement, moreover the responsibility of risk management is distributed between team leaders. Recruiting such a team will not help the management but only increase the cost. Teknos Group used ERM to determine risk, however this is more systematic and accurate than the system used Palta Oy. Tekno uses a more detailed risk identification scheme and a thorough risk assessment is carried out based on the risk assessment table that cover possible opportunities and threats. Tekno Group is capable of transferring risks to other parties with affecting business insurance. Viope is using the perfect risk management structure based on its business scale and resources. Whereas keeping in mind Teknos huge business scale and financial capability, ERM would be a more suitable option for them. However with Teknos Group employee involvement