Risk Management and Riordan Essays

Submitted By listrevino
Words: 1981
Pages: 8

]Riordan Corporate Compliance Plan Riordan Manufacturing is an industry leader in the field of plastic injection molding and customizable designs. They also manufacture precision medical devices and fans to any cooling devices that can meet consumer’s needs in a unique way. According to their website their mission is to remain on the leading edge of research and development, and exceeding ISO 9000 standards define the attitude and abilities of Riordan Manufacturing (Employee Site, 2012). In 2000 it opened its operations in China and they transferred all their operations from Michigan to China. They are focused and engaged on achieving the most profit to insure financial and human capital growth. In order for Riordan to maintain compliance with any governance policies they have several boards that oversee what they are doing. I will give you a description of what should be done when laws are violated or being questioned and also how directors of Riordan should handle certain liabilities since they are in charge. Risk is also an important factor that can severely impact this organization if it is not rightfully mitigated.

Enterprise Liability First of all, Riordan should have a written contract for all their buyers and should also have an alternate dispute resolution stated on this contract in order to minimize Riordan’s potential risk of litigation. This statement on their contracts will save them from having to go through litigation, which can take years and cause a lot of money down the drain. The Committee of Sponsoring Organizations (COSO) was designed to assist companies with implementing a risk management process. This organization is useful and helps companies by posting reports on how topics such as enterprise risk management, internal controls and fraud deterrence. In my opinion the most important one would be Enterprise Risk Management, because it is always important for a company to figure out the appropriate methods to manage risk and seize opportunities helpful to achieving their goals or objectives. Although Riordan should also emphasize on fraud deterrence and internal controls I believe it all begins with risk management because this is what will help a company grow by allowing and choosing the rights steps and doing enough research so the company can prosper instead of failing. In the article by Richard M. Steinberg he states seven themes, which are keys to success, and I found this interesting because they are all helpful. In particular, “Focus on a small number of top risks” (Steinberg, pg. 36. 2011.) By reading a different number of article on companies whom have failed I believe this is the number one reason why because they try to focus on either to many risks or just don’t pay any attention to them. It is important for a Riordan to adopt the COSO structure for their own company because they are supported by five organizations and they have a breakdown that serves the purpose of informing the company step by step what should be done in order to stay in compliance and prevail. They touch on the three major elements important for any organization with risk management being the most important. I found an article on their website that was really interesting, “Developing Key Risk Indicators to Strengthen Enterprise Risk Management” and it identifies the importance of key risk indicators and how to identify and communicate these indicators so others know what should be done. Businesses need to stay on top of their competitors so when they produce a new product or something that will compete against them they know how to stay in the game and not loose so much from it. If companies are able to recognize these indicators early they can prevent future looses or even failure. Overall the COSO organization can benefit Riordan if it is read and understood and followed properly. Riordan should be better prepared for any unforeseen…