You are the newly-appointed CCO for a $34 Billion U.S.-based children’s toy company, which has operations in 70 countries around the world (including Europe, Latin America, North American, and Asia-Pacific). This is your first week on the job, and you’ve already been asked by the CEO, your boss, to perform a high level risk assessment with regard to four key corporate functions:
· Human Resources
Specifically, with regard to these four functions, the CEO has asked you to identify risks based on the four risk “drivers”:
· legal risks related to failing to comply with key legislation and regulation (domestically and internationally)
· significant litigation trends afflicting the industry
· governmental enforcement actions brought against competitors
· key shareholder issues.
The CEO has asked you to:
- design a high-level risk assessment template based on the CEO’s instructions and to identify at least one risk per function and risk “driver” for a total of at least 16 risks. Remember that risks are “words” (e.g., “price fixing” (under the Sherman Antitrust Act) or “bribery of foreign government officials” (under the Foreign Corrupt Practices Act)– there Professor Crescenzi just gave you two related to Sales, since Professor Crescenzi used to work for this company, was your predecessor, and is now enjoying a relaxing life of sunbathing and golf). Each cell of the risk template should be populated with at least one risk.
- Prepare a heat map that plots the risks against the “likelihood” and “severity” related to the risk impacting the Company. Provide definitions as to “likelihood” and “severity.” The CEO has asked you to define “high,” “medium,” and “low” likelihood and severity, respectively.
- Assign ownership and accountability to internal functional or business leaders for “owning” and managing the risks going forward.