- Abstract
Risk management is one of the major procedures that have influenced the growth and development of more than a few organizations globally. Risk management can be described as the process of recognizing risk, accessing risk, and taking steps to mitigate the risk to an acceptable level. This paper focuses on the two social enterprises by focusing on the role of risk management in their project success. Over the years, risk has been a challenge to most organizations. Managers searched for appropriate solutions in order to ensure that their businesses are secure from any form of risks. Café Sunlight and Good Mood Food social enterprises have improved their rates in the global market as a result of risk management implementation. Implementing risk management within an organization is an approach that has significantly enhanced the growth and development of the two organizations.
- Introduction
Today, globalization has influenced the growth and development of more than a few businesses globally. However, despite the growth and development of these organizations, business managers have identified risks that affect their corporates extremely. As a result, managers decided to rely on risk management so as to secure their businesses. Risk management is one of the major procedures that have influenced the growth and development of more than a few organizations globally. Risk management can be described as the process of recognizing risk, accessing risk, and taking steps to mitigate the risk to an acceptable level. In general, risk management determines the procedures, techniques, tools, and team roles and accountabilities for certain projects. This paper is based on the analysis of two social enterprise starts up. The two social enterprises include Café Sunlight social enterprise and Good Mood Food social enterprise. Over the years, these two organizations have faced a number of challenges as a result of the risks that they face in the global market.
This paper focuses on the two social enterprises by focusing on the role of risk management in their project success. Over the years, risk has been a challenge to most organizations. Managers searched for appropriate solutions in order to ensure that their businesses are secure from any form of risks. Café Sunlight and Good Mood Food social enterprises have improved their rates in the global market as a result of risk management implementation. Implementing risk management within an organization is an approach that has significantly enhanced the growth and development of the two organizations. Today, managers within these organizations have used a risk management approach to facilitate operations of the business.
The research objective of this paper is to identify the impact and significance of risk management within social enterprises. It is evident that more than a few social corporates have collapsed due to lack effective mitigation approaches such as risk management. This paper will analyze the effect of risk mitigation approaches through a risk management approach. Over the years, social enterprises have remained to be corporates owned by nonprofit organizations. These organizations are directly involved in the production and selling of goods and services in order to generate income and attain cultural, social and environmental aims. However, risks are the core factors of their failures despite great innovations within the organizations. As a result, the implementations of risk management approach in these organizations will influence considerable growth and development of these organizations.
- Background
- Café Sunlight Social Enterprise
Café Sunlight is a social enterprise is of the longest standing vegetarian restaurants in the United States America. The first Café Sunlight corporate was developed in the 1976 in Seattle. The organization has been offering delicious and healthy vegetarian, vegan, and gluten-free dishes over the past 35 years. The company is located in Settle, Roosevelt district. For over 35 years, Café Sunlight is a certified social enterprise because the profits from the corporate are reinvested for community benefits. As a result of the risks associated with the business, the corporate was not in a position to perform well. However, today the company is one of the organizations globally that have been in a position to mitigate risks and thrive in the global market. This approach has benefited both the company and the community because people continue to benefit from its tremendous services. Today, managers of the corporate use risk management approach and plan to scope the complexity of projects.
- Good Mood Food Social Enterprise
The Good Mood Food social enterprise offers excellent quality and competitively priced catering to companies in Manchester. The corporate ensures that its foods are fresh and are delivered door to door. The social corporate is one of the outstanding social businesses in the City of Manchester. The company offers a wide range of delicious food for corporate and private events across the city of Manchester. The company has more than 20years of experience. The first Good Mood Food social enterprise was developed in the year 1987 in the city of Manchester. Since then, the company has been doing business and helping the community with the profits they gained annually. However, business was a challenge because of the risks that the business encountered over the past 20 years so. The company’s aim to develop any new project was a major challenge. However, the implementation of risk management in the business influenced more than a few changes in the business. Risk management was the solution to the challenges that the business faced over the past 20 years or so.
- Literature Review
As part of these two organizations to safeguard their global brands, the management of the two organizations has established an enterprise risk management (ERM) program in order to identify promising trends that would impact their supply chain. The ERM program is vital because it allows the two global food and beverage organizations to identify macro developments that could interrupt the supply chain and weaken their capability to service clients. Clearly, the management of the two organizations has noticed the ERM is offering early involvement and exposure to risks before they occur. The two companies have developed more than a few stores globally in over 50 states and have committed themselves to assist the community.
The organizations have a mission that will elevate their clients, partners, neighbors, and suppliers to create positive change in the community. The two organizations have worked hard so as to ensure that they are better leaders, innovators, and contributors to the inclusive society and a health surrounding so that people and other corporate businesses can endure and thrive. Clearly, creating a risk management plan requires the ability to access, plan, develop, and little risks and strategies involved. It is evident that project managers within organizations need brainstorming so as to monitor and access how the plan is formulated. Based on research, the two organization managers reviewed ERM program compliments and suggested the significance of managing risks. The program primarily addresses the key aspects such as financial volatility, supply interruptions, and geopolitical events that might hamper the supply chain operations of the two social enterprises. Managers of the two enterprises noted that risk change from year to year assists the organizations/corporates to deal with emerging issues such as threats.
A risk management plan involves approaches and techniques for recognizing and confronting threats that might hamper the corporates. Based on research, managers of the two organizations recognized that risks within a business’s focus on the development of the organization. Therefore, it is not easy for an organization to thrive or develop if these risks are not mitigated. It is clear that risks exist in operations, development, design, integration, testing, fielding, and training. As a result and analysis of these factors within the two organizations, the management of the two social corporates resolved to implement risk management in system-level programs. This is a predominantly the responsibility of the team working so as to provide abilities in a specific development effort. Within a system-level risk area, the fundamental accountability falls to the system program managers for working risk management, and integrators for assisting to identifying and assisting to create approaches that would be used to reduce risks.
- Research Methodology
In order to obtain research objectives, managers of the two organizations have to consider the kind of risks that affect their organizations. It is evident that risk is incorporated into diverse disciplines within an organization. In that case, managers of the two organizations ought to know that risks are related to threats, probabilities, and negative outcomes. Based on quantitative research used to carry out the research, it was noted that the two organizations strive to meet the premier values when selling their products to clients. Therefore, the profits they make are not enough to encounter the project pending to serve the community. The main issue is that risks have influenced crises that can hardly be mitigated without appropriate measures. Quantitative research method is appropriate for identifying the risks that affect the progress of the entire organization. In that case, the managers of the two organizations should consider employees through this process in order to mitigate risks within the organization.
In general, the risk assessment methodology is applicable to all the systems of the two organizations. The methodology will be determined by the management of the two organizations. Based on quantitative research method, it is evident that one of the major factors that are influencing the increased number of risks within the two organizations is technology. Technology is among the leading factors that have enhanced the capability to share information between computers and websites/networks. Based on research, it is evident that technology has made these organizations vulnerable to the greatest extent of risk. Hackers are believed to access the organization's data without permission.
Therefore, based on quantitative research, it is evident that the key factor of protecting data in the two organizations is Enterprise Risk Management (ERP) program. In particular, the manager of the two organizations ought to implement a structured strategy to access risks to the organization's data and identify the vulnerabilities. ERP is the most appropriate program that managers of the two organizations should use while assessing risks. Through the aid of quantitative methodology, managers will easily identify the major risks that affect the progress of the two organizations. The analysis will be conducted through the use of information technology. Technology is the most appropriate approach that managers of the two organizations can employ in order to ensure that they have identified the major risks affecting the company. With the aid of ERP, the management will significantly address these issues and considerably ensure that all the risks have been mitigated properly.
- Analysis
Enterprise Risk Management (EPR) is the best model that can be used to mitigate risks affecting the two organizations. As social corporates, managers should use ERP to identify hazards, access risks, evaluate risks, review risks, and control risks. This model is able to enhance strategic decisions making through addressing strengths, weaknesses, threats, and opportunities. Implementation of ERP in the two organizations will maximize the values of setting goals and also assist managers to balance between the performance goals and targets to the associated risks. ERM is the best approach because it considers how strategic initiatives such as technology might introduce risks that are counterproductive to objectives that are associated with other strategies within the social corporates.
This approach is appropriate because it might reveal locations where the two organizations are being at high risks as opposed to some of their risks. ERP model is suitable for the two social enterprises because it offers a clear and structured strategy to identify risks. The managers ought to have a clear understanding of all the risks that affect the progress of the organization. A clear understanding of all the risks allows an organization to prioritize and measure them and take other appropriate actions to reduce losses. It is clear that the major issue that is facing the two organizations is risks such as hacking, loss of profits, poor performance in business, and break down of business progress. Through this strategy, the organizations can easily mitigate risks.
The other major modeling framework that the organizations can use is operational risk. It is clear that the two social corporates are motivated by profit. In that case, operational profit is the return needed by capital owners for bearing the operational risks related with the assembly process. Operational risk is mainly concerned with internal stakeholders, capital owners of an organization, management that controls the operational risks and workforce that are part of the production process. In that case, the social corporates of the two organizations ought to consider this factor serious because it the only way that managers can influence change and mitigate risks.
- Discussion of Findings
Based on research on the two social enterprises, several studies showed that there were possible vulnerabilities in the organizations. These are the major factors that influenced slow progress and issues of development with the two organizations. However, the two organizations have strived to maintain a positive brand image and services with the community. The research team identified technology as one of the potential threats to the social enterprises. Hackers have been using technology to access the two corporates without permission. This is the major factor that has influenced the greatest risks within the entire organization.
Researchers also noted that competition from other organizations influenced risks because they produced similar products. In general, these organizations have negatively affected the growth and development of the two cooperate by branding fake products that resemble the once used in the two organizations. However, researchers concluded that the use of EEM was appropriate because it influenced a different approach that will enhance development of the organization. It was also found out that some of the employees shared information with other organization. This influenced risks because the competitors used this approach to weaken the two social corporates. However, the use of ERM will effectively ensure that no information is shared with the two corporate competitors. The best way to do so was to implement security risk management to all systems of the organizations.
- Conclusion and Recommendations
In summation, it was found out the technology was the key factor to increased risks with the organization. This factor influenced a number of issues because information about the two social corporates was leaked without permission from the management. Information was shared through the internet by authorized users. As a result, this approach influenced negative factors such as loss of profits and important data about the company, hence putting the two social corporates at a great risk. In that case, I would recommend the management of the two organizations to implement security risk management to all the systems of the organization in order to increase security. In addition, the organizations should implement Enterprise Risk Management so as to enable the mitigation of risks in the two social corporates. This approach will tighten the security of information and the corporates as well as influence growth and development.
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