I have decided to focus my risk analysis on the company Gaudin Systèmes. The core of this analysis is to launch a new line of production in a foreign country, in Algeria. The best thing to do is to analyze the risk of failure in order to sue it. Moreover, the field of this activity is very risky for the employees which are the core of the company. This project is very risky, because if it does not work, the company can close its doors as a lot of money is invested in this project. Furthermore, this project can give a very interesting return on investment for the company, if the objectives are accomplished. So, the best thing to do is to analyze the risk of this project in order to minimize this risk. In order to conclude, we can say that the company Gaudin Systèmes wants to develop its activity at the international level by launching a new line of production in Algeria. The CEO of the company must do a risk analysis in order to know if this project is possible or not. This person is not afraid of the risk and he does not want to lose his company.
[...] The risk have impact on the stakeholders of the company in they are not successful. III Solution analysis 1. Identify Risk to not reach the objectives Solution prevent and anticipate the results and the risks The first solution is to anticipate the results of the company. To begin, the company must do a very good market survey of the possibilities of the country. Then, the company has to keep a margin between the expected return and the point. More this margin will be high more the risk will be low. [...]
[...] Have an insurance to cover the risks, keep financial reserves respect the delays of the project, keep moving margin; Risk employees not enough qualified Exposure: employees, factory workers human capital reputation of the company decrease of the revenues of the company and increase of the costs Perils: Death of factory worker, low efficiency of workers No profitability of the material Company suited Contingent loss, decrease of the revenues Hazards: Trainings for employees Trainings on materials Subscribe insurances Payment plan, take care of the non worked days 2. [...]
[...] risk is the fact of hiring employees with low qualifications, so they could decrease the efficiency and the productivity of the company. So, after a solution analysis, several solutions are offered to the CEO. For the first risk, it is important to prevent the sales of the company and to keep reserves in order to face problems. Then, for the second risk they have to define clearly the objectives and the skills that the potential employees must have, and to give these objectives to a human resources manager who can know very well the country. [...]
[...] Indeed, if this project is successful, the NPV of the company will increase, so they will have more cashflow in order to launch new projects Qualitative analysis We have to do the qualitative analysis for the 2 risks of the Gaudin Systèmes. Risk To prevent is a good solution. To prepare carefully is very important. An investor has to give to his company the possibility to reach the objective that he set. If an investor doesn't want to take risk he has to invest less to be more in security. [...]
[...] Risk sensitivity The CEO of the company is a complete riskier. He constantly develops his company, taking risk. Through today, the fact to take risk has almost always produce benefit. However the risks are always measured Organizing Organizational structure The organizational structure is a line & staff one headed by the Board composed of four shareholders. The CEO is also the head of the board and the main shareholder. He is responsible for the development of the company. The COO is also a shareholder. [...]
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