Assignment Sample on FINM009 Global Operations and Risk management
Introduction
Global business defined as an economic activity that conducted across the different countries. Multinational firms expand business on a world-wide scale (Mao, 2021). By selection of effective global strategy, the entity can able to conduct business functions effectively. Therefore, the scope of technology and operational supervision has been changed with time. In the present era, the one of foremost need of an individual is to use technical tools and products to conduct business activities effectively. Effective operation management aids to create the high level of efficiency possible within the enterprise. Businesses activities engage on daily basis and it enhance the value of an enterprise to earn a profit. Hence, business function’s mainly covers planning, organising, leading and controlling overall activities to effectively and efficiently coordinate things. Business managers must have excellent coordination, organisational and technical skills to run things successfully. It’s a procedure that works as to identifying, accessing and controlling threats to firm’s financial security (Wright, 2021). Additionally, successful risk management plan of action assists an enterprise to accomplish business objectives. Entities are also taking steps towards to explore that how the use of artificial intelligence and technical advancement improve risks management.
The present report is based on business activities of Huawei. Also, report will cover different risk and assessment of risk. Also, assignment will undertake evaluation on risk management strategy so that organisational things can be conducted effectively. Lastly, recommendation and justification will be given to evaluate the effectiveness of firm management policies.
Background-:
Huawei is a technological company that was founded in the year 1987. Thus, in the beginning the entity mainly focused on manufacturing phone switches. This is the Chinese multinational information technology and consumer electronics firm. It is an enterprise that is headquartered in Shenzhen, Guangdong, China. It is Hong Kong based phones and cable network service provider. Hence, this brand has achieved quick brand recognition in market with the latest and high technical products. In the short span of 30 years this brand has gained global success and competing again the likes of Samsung and Apple (Spinato and Frezza, 2021). Therefore, this enterprise mainly designs, develops and sells telecommunication equipment’s, consumer electronics and number of others smart devices. Hence, chosen enterprise deployed its commodities and services in more than 170 countries and areas. Additionally, the Huawai has more than 194000 employees.
Therefore, it must be noted that Huawei Consumer business group became the world third largest smartphone manufacturer by the market share in 2017. Also, its commanding 10% of the international market. This is brand that come up with the innovation that aids to manage provide smarter, manage logistic operation and more energy efficient pipes (Chernobai and Wang, 2021). It is an enterprise that offers legacy to world biggest telecommunication providers by selling the most advanced phones.
Identification of the various sources of risk and assessment of risk.
In the present era, technical advancement is one of the fastest growing sectors. Therefore, an enterprise who is evolving in producing high speed innovation tools needs to manage risk effectively and efficiently. Hence, it has been found out that Information technical risk is constantly developing brand solutions. Risk identification is defined as technique that works as to recognize and evaluating threats to an enterprise (Wang and Huchzermeier, 2021). Therefore, Huawei Consumer business group needs to identify the source of risk to cope with Artificial Intelligence, cyber threats and workforce shortage (Fiedler and Perkins-Kirkpatrick, 2021). An enterprise can conduct business activities effectively if they work as to create risk plan and leads to deliver quality service to customer. Hence, it can be stated that risk is emerging for the technical industry and these are defined as are-:
Cyber security– The awareness of cyber risk enhances each day as more and more entities are threatened with some kind of cyber-attack. Huawei Consumer business group needs to adopt those strategies and must finds ways to tackle such things so that organisational activities can never become ineffective (Yang and Liu, 2021). So, the chosen entity is also taking hard steps to combat with these attacks. Huawei Consumer business group are also making contact with such partners and vendors that investigates the source of attack and resolve it in time to protect the business.
Robots and Artificial intelligence– The firm who are engaged in developing technological products to ease peoples lives. They must use Robots and other artificial intelligent devices that aids to conducts business operations systematically.
Steep pressure to innovate– The one of the biggest threats is that there are many enterprises who are producing smart tools. So, the pressure of produce technological tools are high. It puts pressure on firm to produce innovative products (Abu Hatab and Esmat, 2021). This is the kind of steep pressure on firm to bring something new so that brand image can be sustained for the longer period of time.
Workforce shortage– The one of the main problems in the industries like Huawei Consumer business group is to identify serious talent so that they can undertake things effectively. Skilled and expert person works to bring innovation and to take steps to manage threats and risk (Katikou, 2021). Also, employees must be well trained to monitor the device, robots and AI and other tech commodities. Weak support team hinders the brand reputation of Huawei Consumer business group.
Lacking in diversity– Workforce shortage already looming the technical industry at the huge level. Hence, workforce is mostly of the male (Eladly, 2021).
Different sources of business risk-
A certain risk level is must for running a business and firm cannot able to eliminate risk. On the other hand, firm cannot control and successfully manage the risk. In order to manage each thing effectively, the entity needs to take such decision and selection that helps to gain potential profit. There are number of the sources of risk are defined as-:
Risk management– The entities should foreseeable some level of risk and creates return on investment so that it can be satisfactory to stockholders (Spinato and Frezza, 2021). Therefore, the key to successful risk management is to create a balance among risk and reward this is inclusive of carefully evaluating possible profits again potential issues or threats to operational steadiness. Entities must frame risk plan to deal with issues. Managing risk means to having a backup source that’s aids to conduct business activities effectively.
Operating profit– The marketplace in which entity conduct its operational activities is primary source of risk. There are many risks that cannot be directly controlled. In order to conduct business functions effectively, this is crucial to managed and dealt things efficiently (Bednarek and Jarzabkowski, 2021).
Cash flow- There are number of business risk that are linked with financing and cash flow. Therefore, firms unable to obtain crucial financing for an expansion project. Hence, suppliers may unexpectedly raise cost and creating cash flow issues.
Employee related issues– It is another risk of business risk. If an IT firm have issues regarding shortage of expert person than hugely affect the working of an enterprise (Robert, 2019). Therefore, the loss of key personal affects the working performance of an enterprise and profitability. To run the business functions effectively, entity must have expert authorities so that altogether the things can be conducted in better manner (Hoyt and Liebenberg, 2021).
International risk– If Huawei Consumer business group do not conduct business activities at the global level. There are number of potential risks such are as change in tariffs, political issues, political risk and other risk that are linked with fluctuating currency exchange rates.
Assessing risk-:
- There are mainly three significant principles for assessing the risk in the enterprise are defined in the following manner as are-:
- To get ensure that in the enterprise there is clear and authentic structured process in which both probability and effect of the risk can be considered effectively.
- To take step towards to record the assessment of risk in a manner that works as to facilitate monitoring and identification of risk priorities.
- In order to manage the things effectively, Huawei Consumer business group needs to be clear about the difference between integral and outstanding risk .
- Huawei Consumer business group needs to document the type of risk that helps to create risk profile for an enterprise. For this, following things needs to be conducted are as-:
- To take steps to facilitate the identification of risk priorities.
- To facilitates recording the way in which this can decided to address the risk.
- To take steps to identify the risk in organisation.
- To facilitates the review and monitoring of risk.
Conduct evaluation on Risk management strategy.
Digital technical advancement is the buzzword in the corporate industry. Technical advancement and innovative solutions have become the need of each individual. In order to conduct the things effectively, an entity must appoint risk managers so that all things can be carried out effectively (Hoyt and Liebenberg, 2021). Risk management strategy reflects the enterprise view and how an entity intends to manage risk. Risk management is strategic solution to conduct systematic process by investing and assessing firm hazards. To manage this firm must take actions to protect firm business activities. Herein, there are main four kind of Risk management strategies are outlined as-:
Risk acceptance- This is defined as concept in which risk is accepted with no action to mitigate it. Therefore, this approach will not minimise the impact of risk. Also, it does not prevent it from happening (Hoyt and Liebenberg, 2021). At this level, Huawei Consumer business group needs to investigate so that proper solution needs to be conduct to minimise the risk.
Risk transference- It is transferred via a contract to an external party who assumes the risk on an organisation’s behalf. Thus, firm must build some plan of action to deal with such technical expert agencies, partners and suppliers so that at the time of any issues firm can able to mitigate it.
Risk avoidance– This is defined as term in which enterprise do not take any action to mitigate the risk. If the risk has been avoided at the primary stage, then it will be major bumper to organisational growth in future (Hoyt and Liebenberg, 2021). In order to deal with it effectively, the enterprise must build a risk management team so that they can identify the risk at initial level so that entity do not face occurrence of it.
Risk reduction– It defined while risk becomes less severe through actions that are needed to be taken to prevent or to minimise the impact. Risk reduction means lowering the consequences of risk that has been occurred (Hoyt and Liebenberg, 2021). With the use of quality management system and cyber security Huawei Consumer business group can con lower the chance of any hazard happening.
Suggest recommendation and justification.
On the basis of above report, the following suggestive measures has been outlined in order to manage risk and to runout business functions effectively and efficiently. These as are-
- The data privacy regulatory landscape continues to shift and compliance demands that are becoming more reality for the technological industries. In order to prevent it, Huawei Consumer business group should implement General data protection regulations to offer a new standard to manage the thing in the enterprise.
- In this challenging era, Huawei Consumer business group should take extra efforts to have cyber insurance. Cyber insurance policy assists to conduct the business functions in more secured.
Conclusion
From the above report, it has been concluded that Global operation management defined an as significant process that expand the business activities at the international level. The present report based on business activities of Huawei Consumer business group. Also, the report has outlined varied sources of risk that is affecting business operations. Also, evaluation has been conducted on risk management strategy so that things can be carried out effectively. Lastly, recommendation has been given to improve business functions systematically.
References
Books and journals
Abu Hatab, A. and Esmat, A., (2021). Risk perception and determinants in small‐and medium‐sized agri‐food enterprises amidst the COVID‐19 pandemic: Evidence from Egypt. Agribusiness, 37(1), pp.187-212.
Bednarek, R. and Jarzabkowski, P., (2021). Managing risk as a duality of harm and benefit: a study of organizational risk objects in the global insurance industry. British Journal of Management, 32(1), pp.235-254.
Chernobai, A. and Wang, J., (2021). Business complexity and risk management: Evidence from operational risk events in US bank holding companies. Journal of Monetary Economics, 117, pp.418-440.
Eladly, S.M., Sources Allocation on Risk Performance of Egyptian Insurance Companies.
Fiedler, T. and Perkins-Kirkpatrick, S.E., 2021. Business risk and the emergence of climate analytics. Nature Climate Change, 11(2), pp.87-94.
Hoyt, R.E. and Liebenberg, A.P., (2021). The value of enterprise risk management. Journal of risk and insurance, 78(4), pp.795-822.
Katikou, P., (2021). Digital Technologies and Open Data Sources in Marine Biotoxins’ Risk Analysis: The Case of Ciguatera Fish Poisoning. Toxins, 13(10), p.692.
Mao, Q., (2021). Risk management of project information system operation and maintenance based on Cloud Computing. International Journal of System Assurance Engineering and Management, pp.1-12.
Spinato, G. and Frezza, D., (2021). Risk management during COVID-19: safety procedures for otolaryngologists. Acta Bio Medica: Atenei Parmensis, 92(1).
Spinato, G. and Frezza, D., (2021). Risk management during COVID-19: safety procedures for otolaryngologists. Acta Bio Medica: Atenei Parmensis, 92(1).
Wang, J. and Huchzermeier, A., (2021). Operations‐finance interface in risk management: Research evolution and opportunities. Production and Operations Management, 30(2), pp.355-389.
Wright, J.F., (2021). Disaster Mitigation Under Complex Contingencies: Risk Management Outline for a Connected World. International Journal of Risk and Contingency Management (IJRCM). 10(1). pp.1-11.
Yang, J. and Liu, M., (2021). Antecedents and consequences of supply chain risk management capabilities: An investigation in the post-coronavirus crisis. International Journal of Production Research, 59(5), pp.1573-1585.
Online
Larry, m., (2020). Huawei – Transforming A Chinese Technology Business to A Global Brand. 2020. [Online]. [Available through]:<https://martinroll.com/resources/articles/strategy/huawei-transforming-chinese-technology-business-global.>.
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