Download this Essay in word format. Riordan Manufacturing has faced a number of operational issues that have forced the hand of the company to make drastic changes to the methodology it uses to operate.
The company has been on expansionary mission, which has led to other branches being opened at Albany, Pontiac, and Hangzhou in China. In addition, the amount of transactions carried out through e-commerce has almost doubled in a span of less than two years. As such, the management discovered the necessity to initiate an enterprise risk management ERM program as part of the strategy to take care of the uncertainties; also assured stakeholders of the value in their investments.
The COSO design was the most preferred approach as it is particularly explicit in defining actions that promote management responsibilities, employees ' rights, and legal risks through advocacy for dispute management responsibilities Management Responsibility The company embraces sigma management strategy.
The Board of Directors is charged with the duty of overseeing the general management of Riordan business activities by complying with the state corporation requirements, Articles of Incorporation, as well as its Bylaws.
In addition, under the corporate governance plan of the company, the Board of Directors is responsible for maintaining nominating committee, executive and auditing committees.
Nominating committee oversees the competencies and skills of the Board members, supervise the Board and recommends new Board members. The term compliance can be viewed from two distinct perspectives. First, it can be regarded as acting in accordance to the well-prescribed and established laws or guidelines.
On the other hand, one might understand as the process of becoming compliant with the legislation and guidelines in place.
The presence of corporate management plan is essential in managing the day-to-day activities of the business. However, in order to solve and tackle future issues in the organization, there is an urgent need for incorporation of corporate compliance plan.
The plan will serve as a guide on handling legal liabilities such as a violation of the laws, enterprise liability, real, and intellectual property and governance principles of regulatory compliance requirements In order to mitigate risks and liabilities while deriving maximum benefits from contractual opportunities, the contract must be clear and concise.
Ambiguity should not be tolerated, and both parties have the duty to be reasonable and act in utmost good faith. The negotiating parties reserve the responsibility of sticking to the provisions in the contract to eliminate cases of breaching the contract.
However, in case one of the parties intentionally or circumstantially breaches the contract, the company should use one of the following ways to resolve the dispute.
They include negotiation, mediation, arbitration, and litigation. The method chosen will solely depend on the individual parties' willingness to engage in the dispute resolution process. ADR comprises of negotiation, mediation, or arbitration.
Litigation should be used as a last resort because it is complex, time-consuming, and involves a lot of bureaucracy with the judicial system.
Directors' and Officers' Liability The directors and officers at Riordan Corporation have the duty to uphold due diligence in the manner they conduct the activities of the business. It is mandatory that they act in utmost good faith while prioritizing the best interest of the organization.
Directors of this corporation are expected to comply fully with the following three basic responsibilities:A risk management plan for the project to develop the integrated circuit boards for the medical device industry has been prepared by some of the members of the risk management team which include: (1) Joseph Lewis, Project Leader, (2) Dax Tahir, Project Team Member, (3) Ann Waye, Project Team Member, and (4)Autumn Ghattas, Project Team Member.
Riordan Enterprise Risk Management Plan Riordan Manufacturing is a Fortune company that specializes in the plastic injection molding industry. They are an international company with facilities in California, Georgia, Michigan, and China.
This plan was developed for use in Riordan Industries, Inc., Riordan Manufacturing, and all other Riordan ventures, subsidiaries, and partnerships. Unless otherwise noted, . The following Enterprise Risk Management (ERM) plan was developed for Riordan Industries, Inc.
and its subsidiaries. The goal of this plan is to help mitigate any legal liability on the part of Riordan by implementing the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework (Jennings, ). Enterprise Risk Management at Riordan embraces, first of all, internal environment; this assumes the approach and methods of risk assessment, used by the company’s executives, as well as their considerations in risk appetite, values, morals, working conditions and familiar techniques.
International Law Riordan Manufacturing will adhere to the rules and principles of the host country that business is conducted in accordance with the International Law and laws of the land.
Enterprise Risk Management Enterprise risk management is an approach to assist management to identify and manage uncertainties to obtain positive risk objectives.