Volkswagen Operational Risk Essay

The motor vehicle is one of the most highly competitive industries in the economy at the moment. In this competitive business environment each company is doing their utmost to outdo their rivals. Clearly each organisation wishes to move ahead as quickly as possible, and that involves taking risks as the business exposes itself to a range of uncertainties that could affect whether or not it achieves its desired aim (Hillson, 2009). Due to motor vehicle companies thirst for wealth maximisation and the fact that they are constantly competing with others, one small hesitation in production can leave them trailing in the dust. With this mind set they may leave themselves vulnerable to risks of all types and magnitudes. Possible risks include faulty mechanical parts installed in vehicles or adding harmful pollution to the environment. There is not one single or best way to manage all …show more content…
Toyota’s and Volkswagen’s past failures in risk management have greatly improved and informed how they manage present and possible future risks today.

In everyday life, very few things are certain. Risks are waiting all around us and it is impossible to avoid them. We must embrace these risks as well as we possibly can. The idea of risk management is to control and manage the risks we encounter as best we can. Therefore, when it comes to huge industries like the motor industry it is a lot simpler and easier to tackle these risks together. It is unquestionably vital that future safety concerns, procedures and risk assessments are implemented to the highest standard possible to ensure a safer environment and experience for all future consumers in the motor