Ultimately, the risk analysis process helps identify and manage potential problems or focus on key business initiatives (Manktelow, 2007). Often, risk is associated with problems, such as: injury, disruption of operations, distribution problems, fraud, changes in economy, changes in technology, natural disasters, or changes in governmental policy (Manktelow, 2007). Comparatively, I chose Environmental Scanning and Key Performance Indicators as the tools for Risk …show more content…
Indeed, Kroger takes Environmental Scanning seriously and considers sustainability a core function focusing on energy usage, water usage, waste, and logistics (Dillon, 2015). Another tool in the Risk Assessment Process is identifying Key Risk Indicators. Ultimately, Key Risk Indicators measure the presence or trend of potential risk (Bethel, 2016). Thus, examples of Key Risk Indicators can be found in Human Resources, Information Technology, Finance, Legal or Compliance, Audit, and Risk Management operations (Fraser & Simkins, 2010). Specifically, areas of risk include: corporate governance, management changes, supply chain issues, fraud, legal risks, terrorism, high debt and asset losses (Matruglio & Tymmons,