问题详情

JohnPentanolwasappointedasriskmanageratH&ZCompanyayearagoandhedecidedthathisfirsttaskwastoexaminetherisksthatfacedthecompany.Heconcludedthatthecompanyfacedthreemajorrisks,whichheassessedbyexaminingtheimpactthatwouldoccuriftheriskweretomaterialise.HeassessedRisk1asbeingoflowpotentialimpactasevenifitmaterialiseditwouldhavelittleeffectonthecompany’sstrategy.Risk2wasassessedasbeingofmediumpotentialimpactwhilstathirdrisk,Risk3,wasassessedasbeingofveryhighpotentialimpact.
WhenJohnrealisedthepotentialimpactofRisk3materialising,heissuedurgentadvicetotheboardtowithdrawfromtheactivitythatgaverisetoRisk3beingincurred.IntheadvicehesaidthattheimpactofRisk3waspotentiallyenormousanditwouldbeirresponsibleforH&Ztocontinuetobearthatrisk.
Thecompanycommercialdirector,JaneXylene,saidthatJohnPentanolandhisjobatH&Zwereunnecessaryandthatriskmanagementwas‘veryexpensiveforthebenefitsachieved’.Shesaidthatallriskmanagersdoistotellpeoplewhatcan’tbedoneandthattheyarepessimistsbynature.ShesaidshewantedtoseeentrepreneurialrisktakersinH&Zandnotriskmanagerswho,shebelieved,tendedtodiscourageenterprise.
JohnrepliedthatitwashisjobtoeliminateallofthehighestrisksatH&ZCompany.Hesaidthatallriskwasbadandneededtobeeliminatedifpossible.Ifitcouldn’tbeeliminated,hesaidthatitshouldbeminimised.
(a)Theriskmanagerhasanimportantroletoplayinanorganisation’sriskmanagement.
Required:
(i)Describetherolesofariskmanager.(4marks)
(ii)AssessJohnPentanol’sunderstandingofhisrole.(4marks)
(b)Withreferencetoariskassessmentframeworkasappropriate,criticiseJohn’sadvicethatH&Zshould
withdrawfromtheactivitythatincursRisk3.(6marks)
(c)JaneXyleneexpressedaparticularviewaboutthevalueofriskmanagementinH&ZCompany.Shealsosaidthatshewantedtosee‘entrepreneurialrisktakers’.
Required:
(i)Define‘entrepreneurialrisk’andexplainwhyitisimportanttoacceptentrepreneurialriskinbusiness
organisations;(4marks)
(ii)CriticallyevaluateJaneXylene’sviewofriskmanagement.(7marks)


请帮忙给出正确答案和分析，谢谢！