Appraise the main risks encountered by the company

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Reference no: EM133018062

Wecare Bhd., which has been in existence for 25 years, is a drug manufacturer for chronic diseases and is involved in medical research. They compete with rivals in the industry to raise external funds due to their limited internal resources. Apart from Wecare Bhd., there are three other major competitors in theindustry. Wecare Bhd. is the second largest company among the four. However, it is much smaller than the largest competitor, MedHelp Bhd.Medical research in chronic diseases has made substantial progress in recent years, but the cost of investing in a new research project is now much higher than it was ten years ago. A new three-yearproject could require funding equal to approximately 75% of Wecare Bhd.'s annual revenue.

A new Managing Director has been appointed to revamp the risk management systems, as the existingsystems failed to recognise the principal risks encountered by Wecare Bhd. Hence, the new systems are needed to identify, assess and control the risks more effectively with newer policies and procedureswhile complying to the new regulatory requirements and standards from the government.

Source: This is a self-created short case.

Required:

As the Risk Management Consultant of Wecare Bhd., appraise the main risks encountered by the company.

Reference no: EM133018062

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