Reference no: EM133338188

Question: What risk management strategies should NIKE use to manage the top 5 risks? What could the company do to manage any risk interdependence? Can you find any evidence of whether the company is practicing ERM? What do you recommend to the organization to control and/or finance the potential losses associated with the five risks selected and measured in Part I? Provide some analysis.

1. As part of this analysis, you will need to determine the burden of risk (cost of risk) considering both direct and indirect costs. Be sure to consider all types of risk management strategies (risk control and risk financing) and explain why you chose certain strategies over others that exist. If your team recommends a combination of strategies, explain why this risk management plan seems most appropriate. During this step, your group will want to consult outside materials. Please cite them appropriately.
2. In addition to the strategies you recommend, is there a potential gap in the market? That is, are there market failures that hinder certain risk management strategies from being effective? Does your firm have uninsurable risks, for example? Or are there risk management strategies you would like to implement for your organization but cannot? For example, the risk management strategy you would like to recommend is a financial and/or insurance product that doesn't currently exist - either because insurance companies cannot price it or because the financial markets have not created a security which can properly hedge the risk your organization faces.
3. Are some governmental, legal, or public policy changes being considered that may create risk to your organization? You need not discuss each one listed below, but some outside elements may affect your risk. For example, how might further changes to the immigration policy, antitrust policy, or inflation change the risk analysis for your organization? How might social insurance programs such as unemployment benefits, Social Security and Workers Compensation impact your findings so far? Are there other policies that impact your organization such as Tort Reform, environmental regulations, and product liability lawsuits? How do these policies change overall costs and risks for your organization? Do they hinder or help risk management in the organization?