Risk Management Model

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This assignment is based on the application of risk management model of Arcelor Mittal South Africa. Since Arcelor Mittal is a very big company in terms of the production of steel, there lie uncertainty of the negative outcomes. This assignment basically focuses on the application of the risk management model that identifies and evaluate risks concerning the Arcelor Mittal, finding ways on how the management can control risks, reduce and finance risks in hoping to secure the company from losses that might occur in the future.

Arcelor Mittal is a company situated around Vanderbijlpark in Gauteng. It is the largest steel manufacturer in Africa. It was established in the year 1928
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It involves planning, coordinating and directing the risk-control and risk financing activities in the organization” (Valsamakis et al, 2010: 13).
Determining the objectives of the risk management function
The first step to determining the objectives of the risk management function is to define the company’s goals and shared vision. The goals should be actionable and should be defined in the context of the company’s business strategy, lastly the goals and visions should determine what exactly needs to be accomplished (Protiviti: 2012). What are the risk management objectives of this company?
Arcelor Mittal is a company aimed at achieving greater business aspects in the future and has outlined a few of the company’s visions, mission, goals and values. There are as follows:
1. Vision
• Their vision is to add value to all their stakeholders through their market leadership positions in African countries by producing quality steel products safely, being an employer and supplier of choice, while striving to be among one of the lowest-cost steel producers in the world (Arcelor Mittal;
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“Risk identification is the process of determining risks that could potentially prevent the program, enterprise, or investment from achieving its objectives. It includes documenting and communicating the concern” (Mitre: 2010).
Risks can occur in different ways and in different times and most importantly they occur unexpectedly. It is up to the company to find the way and try to mitigate them as soon as possible. Risks can be identified in a couple of ways such as hazard identification, exposure identification and others.
1. Hazard identification
Hazard risks around the ArcelorMittal are risks such as the improperly maintained machinery, junior workers who haven’t yet acquired skills necessary for the proper completion of the work. Lastly workers not abiding by the rules and regulation policies laid upon them.
2. Exposure
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