A true Enterprise Risk Management strategy is top priority for the leadership of the organization. In fact, failure to complete thorough risk assessment could put the organization in a state of emergency should the process be ignored or mismanaged (Fraser & Simkins, 2010). Ultimately, taking risk without weighing losses results in increased liability (Bethel, 2016). Thus, components of risk management include identifying the hazard, measuring the loss, and treating or responding to the event (Bethel, 2016).
In the last exercise, we discussed internal and external considerations of the organization and the impact these risks have moving forward. In an effort to offset identified considerations, it is imperative a strategic risk assessment be conducted to determine the relevancy of each consideration. A strategic risk assessment consists of: conducting a risk assessment of plans; identifying critical risk scenarios; identifying countermeasures or solutions to the scenarios; and establishing a system to monitor the risk profile of the organization (Fraser & Simkins, 2010). Ultimately, the organization is reviewing and estimating the probability of risk within their organization. Internal considerations are risks that are controllable and should be eliminated or avoided, such as:. unauthorized, illegal, unethical, incorrect, or inappropriate actions committed by the leadership or employees (Kaplan & Mikes, 2012). Types of controllable internal risks within Rutherford County include: financial reporting, ethical behavior, employee engagement, breach in technology, and communications. Ultimately, the county has enacted audit committees and boards consisting of members of the legislative body, members of the Comptroller’s office, and outside certified public accountants, to review our practices and procedures as it relates to the financial realm. Further, the county has an Ethics Board who respond to complaints or concerns of an ethical nature. Last, the county contracts with multiple out of county technology companies to backup our systems, we have multiple servers, and our data is backed up and information is shared off-site. External considerations arise from events outside of the organization and are beyond its influence …show more content…
Types of external considerations within Rutherford County are related to natural disasters, political disasters and macroeconomic shifts, including inflation, rate of growth, and unemployment. As a measure to offset natural disasters, we have relationships with other counties across the state coordinate efforts with our Emergency Management team. Indeed, the county 's mitigation planning efforts consist of local, state, and federal assistance. Unfortunately, there are few measures to plan for political disasters; however, the county’s legal team reviews each action before the legislative body makes recommendations or approves any items of a political nature. In an effort to offset the economy, the county and local municipalities made a plea with citizens to shop locally to keep revenues within the county to help offset the costs associated with programs resulting from the …show more content…
At times, the county is at risk and is unable to meet the needs of our citizens and we can request state or federal aid. The most valuable and unique resources of the county include our employees, our citizens, and our demographics. Rutherford County government is staffed with key personnel who are knowledgeable in their field and are extremely resourceful. Notably, the leadership within the county are there by choice, not because of financial gain, bonuses, or other extravagant benefits. Therefore, losing members of the team is always damaging to county. Additionally, our citizens are involved in local government and want what is best for the county moving
In the last exercise, we discussed internal and external considerations of the organization and the impact these risks have moving forward. In an effort to offset identified considerations, it is imperative a strategic risk assessment be conducted to determine the relevancy of each consideration. A strategic risk assessment consists of: conducting a risk assessment of plans; identifying critical risk scenarios; identifying countermeasures or solutions to the scenarios; and establishing a system to monitor the risk profile of the organization (Fraser & Simkins, 2010). Ultimately, the organization is reviewing and estimating the probability of risk within their organization. Internal considerations are risks that are controllable and should be eliminated or avoided, such as:. unauthorized, illegal, unethical, incorrect, or inappropriate actions committed by the leadership or employees (Kaplan & Mikes, 2012). Types of controllable internal risks within Rutherford County include: financial reporting, ethical behavior, employee engagement, breach in technology, and communications. Ultimately, the county has enacted audit committees and boards consisting of members of the legislative body, members of the Comptroller’s office, and outside certified public accountants, to review our practices and procedures as it relates to the financial realm. Further, the county has an Ethics Board who respond to complaints or concerns of an ethical nature. Last, the county contracts with multiple out of county technology companies to backup our systems, we have multiple servers, and our data is backed up and information is shared off-site. External considerations arise from events outside of the organization and are beyond its influence …show more content…
Types of external considerations within Rutherford County are related to natural disasters, political disasters and macroeconomic shifts, including inflation, rate of growth, and unemployment. As a measure to offset natural disasters, we have relationships with other counties across the state coordinate efforts with our Emergency Management team. Indeed, the county 's mitigation planning efforts consist of local, state, and federal assistance. Unfortunately, there are few measures to plan for political disasters; however, the county’s legal team reviews each action before the legislative body makes recommendations or approves any items of a political nature. In an effort to offset the economy, the county and local municipalities made a plea with citizens to shop locally to keep revenues within the county to help offset the costs associated with programs resulting from the …show more content…
At times, the county is at risk and is unable to meet the needs of our citizens and we can request state or federal aid. The most valuable and unique resources of the county include our employees, our citizens, and our demographics. Rutherford County government is staffed with key personnel who are knowledgeable in their field and are extremely resourceful. Notably, the leadership within the county are there by choice, not because of financial gain, bonuses, or other extravagant benefits. Therefore, losing members of the team is always damaging to county. Additionally, our citizens are involved in local government and want what is best for the county moving