In the year between 1999 and 2001, Dick Brown was hired as the CEO and chairman of EDS (Electronic Data Services) Corporation which was one of the largest players in IT outsourcing to turn around EDS from down profits, flat revenues, indecisiveness, poor accountability, and organizational structure that did not fit its environment. Brown places a strong focus on the customer to provide them meaningful derive value. In order to achieve this new mission, he built skills in e-commerce areas and especially, aggressively chased mega-outsourcing contracts.
There are three highlights of the long-term mega-contracts of EDS: 1) Mega-outsourcing contracts can lock in revenue streams for a significant period of time, for example, …show more content…
As group one defined in the presentation, Enterprise risk Management (ERM) is “a process, effected by an entity’s board of directors, management, and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives”.
Pros: First, by implementing ERM system, business can identify what kinds of risks exist in the organization. The system can go onto identify what you need to do. ERM also “provides the rigor to identify and select among alternative risk response, risk avoidance, reduction, sharing and acceptance”. Every enterprise faces various affecting different parts f the organization, ERM can facilitate effective response to the risks. Risk also can be a good thing, so ERM can direct management to identify and proactively realize the opportunities that bring by risks.
Cons: One of the main concerns about ERM system is cost. Most of ERM system is accomplished by ERM software which is expensive. In addition, to understand how ERM system works, employees and managers need