REMEMBER RAW: RESEARCH – then ANALYSE – then WRITE
Arif Zaman, Module Leader
LSBM302 Corporate Risk Management
Assessment Brief 2 Guide: Portfolio
Assessment of risk management in FTSE companies
| Weighting | This assignment is worth 60% of the module grade |
| Word Limit | The word limit for this assessmentis 3,000 words |
| SubmissionDeadline | Monday 04 April 2022 (3pm) |
AssignmentTutorOnline
6 steps to get you started
1. Create a Project Plan for each week to the submission deadline
of Monday 04 April (3pm)
2. Create a single slide deck from all slides highlighted for ease
of reference
3. Download all reports from Canvas and print/read all web links
to news sources
4. Skim – do not read – reports guided by the slides highlighted
in this Guide
5. Cluster / group report sections and articles around each
question
6. Then go back to key reports and articles that are of interest
and relevance and use them (and any other sources) to help
develop your answers to each question
Remember to share drafts with your Module Tutor for feedback
2
Focus on the following companies
for analysis:
• EE
• AstraZeneca
• Royal Bank of Scotland (RBS)
3
You need to
a) Review and assess the risk management of each
company, based on any publicly available information
b) Comment on each organisation’s main types of
corporate risk, their strategy, assessment, response and
risk communication.
c) Signpost how risk management for the companies may
evolve in the future
d) Discuss implications for both each company and
regulators
e) Identify any common themes and observations across
the three companies
4
The assessment should be in the form of
a report with the following structure
1. Introduction
2. An overview of each company and guiding
strategy, and explain that you will compare and
contrast different exposure and approaches to
risk
3. Identification and assessment of risk
• Identify the key risks faced by each company
and provide an assessment using publicly
available information to justify your assessment.
• Classify the risks using recognized frameworks
and models.
5
The assessment should be in the form of
a report with the following structure
4. Risk response
• Evaluate EE, AstraZeneca and RBS’ response to its risk
exposure
• Best practices and governance approaches (please apply
models and frameworks designed to measure different
business risks)
5. Risk communications: Evaluate the clarity and
comprehensiveness of each company’s communication of risk
to their key stakeholders
6. Conclusions
• Summarise any common themes and observations across the
three companies and explain how risk management in these
companies may evolve in the future
• Set out any implication for the company and regulators in the
light of lessons learnt
6
Make sure that you
• Follow the structure outlined above but you may change
the wording of the headings and add sub-sections to
your report
• Draw directly on the course materials and the teaching
of each week to apply a corporate risk management
perspective
• Include any other material you consider relevant to
demonstrate an understanding of the workability and
impact of the corporate risk management of each
organisation
• Use a range of academic sources for your report
• Use Harvard referencing throughout for your citations
and the reference list.
7
Frameworks – why, what and how
• Justify their use and relate them to the Case Study
• Tests understanding by application of theory to the Case
Study
• Populate frameworks with analysis from case and
readings
• Use a range (no minimum/maximum number) to show
understanding, reveal and reinforce key points – and
reduce wordcount
• Ensure you use some (not all) in the Risk assessment
and Risk response sections. Focus on those that interest
you and fit best with your analysis.
• Highlight any limitations, especially in relation to this Case
Study
• Find from eg. List of Figures and Tables from Hopkin 8
You need to combine
(a) an analysis of the three companies
drawing from published reports
with
(b) the academic literature drawing on
core texts and readings from the lectures
and seminars
NOT DOING BOTH WILL RESULT IN LOW
MARKS
9
(a) an analysis of the
three companies
drawing from published
reports
10
Key sources: Company reports
11
1. Wikipedia – see especially Criticism / Controversies:
EE, AstraZeneca and RBS
2. Canvas:
Information and resources→
Bloomsbury Institute Online Library and Databases [BOLD]→
Library Resources:Bloomsbury Online Library and Databases (BOLD)→
CMI Management Direct→
Browse by Content Types→
Company Report →
Company Profiles→
[company] Marketline Report
3. Proquest articles
4. Company web sites (annual reports and, if available
presentations)
See 2021-22 Risk
Reports
(Seminar 1 in W1)
(b) the academic literature
drawing on core texts and
readings from the lectures,
seminars and workshops
13
Key weeks and topics: lectures
• Week 5 Risk assessment
• Week 6 Risk response
• Week 7 Risk governance and regulatory risk
• Week 9 Communicating uncertainty and risk
communication
• Week 10 Technology risk
14
Key weeks and topics: seminars
• Risk assessment: Chapters 10, 11, 12 and 13 core text
book Hopkin Fundamentals of Risk Management
• Risk response: Chapters 15 and 16 core text book
Hopkin Fundamentals of Risk Management
• Risk governance and regulatory risk: Chapter 29 core
text book Hopkin Fundamentals of Risk Management
• Communicating uncertainty and risk communication:
Section 14 in Hillson The Risk Management Handbook
• Social media risk: Section 20 in Hillson The Risk
Management Handbook
REMEMBER to highlight examples from any other
companies covered during the Workshops (from the
RM lessons and conclusions) where relevant and
useful
15
Risk Appetite statements (IRM, 2012)
Seminar W9
See Section 4: Extracts from annual reports about risk
appetite
• Section 4.1 Context for risk appetite statements
• Section 4.2 Design and content of risk appetite
statements
• Section 4.3 Implementation of risk appetite statements
• Section 4.4 Monitoring impact of risk appetite
statements
• Section 4.5 Governance of risk appetite statements
16
Consider reputational risk
• See my chapter 7 on Reputational Risk in
Hillson The Risk Management Handbook
• What Every C-Suite Exec Should Know About
Reputation: 2019 Macro-Trends on Reputation
17
Consider COVID-19 impact
1. Why succeeding in the post-COVID era
means reassessing corporate risk (25/01/21)
2. Less globalisation, more tech – The changes
COVID-19 is forcing on to business
(Economist, 11/04/20)
3. Cybersecurity’s dual mission during the
coronavirus crisis (McKinsey, 10/04/20)
4. The crisis will change the world of commerce
(Economist, 08/04/20)
5. McKinsey Survey of UK consumer sentiment
during the coronavirus crisis (09/04/20)
18
Sources for COVID-19 impact
5. Consumers Are Delaying Big Purchases Until
Coronavirus Subsides (BRINK, 08/04/20)
6. Europol: Cybercrime is Growing Amidst Pandemic
(OCCRP, 04/04/20) – see summary and report
7. Defending Retail against the Coronavirus (Bain,
11/03/20) – article and video
8. Why What Does Not Kill Us Makes Us Panic (Gerd
Gigerenzer,12/03/20)
9. Coronavirus Response Not Always About Minimizing
Harm – Carol Williams (10/03/20)
10.Toss out traditional risk management thinking (Norman
Marks, 07/03/20)
19
for more detail and questions to help
focus your answer and link to specific
areas covered on the course, you will
find this useful…
(NB words in bold relate to
sections/headings in lectures)
20
Section 3: Assessment of risk
a) Identify key risks and
b) Classify these risks into categories
21
W2: Main types of corporate risk
1. What are the various categories of risk?
2. Which were the key risks to be identified?
W5: Risk assessment
1. Were early warning indicators or trigger
conditions for risks identified effectively?
2. How effective was each company in managing its
risks?
3. What does the Risk-Assessment Matrix tell us?
4. How and when were risk assessments performed?
Section 4: Risk response
22
W6: Risk response
1. Was ERM applied and effective?
2. Were there any barriers to strengthening ERM
processes?
3. Was ERM embedded using LILAC?
4. What is risk appetite and why does it matter?
5. What does the Risk appetite and the risk matrix –
Risk appetite, exposure and capacity (vulnerable)
tell us?
Section 4: Risk response
23
W7: Risk governance and regulatory risk
1. How effective was Corporate Governance?
2. Would the British Standard (BS 13500) Code of practice for
delivering effective governance of organisations been
helpful, especially learning from the Case Studies on the
experience from other companies as used in the workshop?
3. Were there any Red Flags For Directors?
4. What can we learn from any of the Questions for the Board to
Consider on Risk appetite and culture; RM and internal
control systems; Monitoring and Review; and Public
reporting?
5. What can we learn from any of the ICGN Principles on
corporate risk oversight on proactive oversight; taking a
comprehensive approach; risk culture; and risk oversight
being a dynamic process?
Section 5: Communicating uncertainty and risk
communication
24
W9: Communicating uncertainty and risk communication
| 1. | How do the companies compare against best practice in Principal risk reporting eg. |
• Does the description of principal risks identify how they
are specific to the company?
• Is it clear how the company categorises and prioritises
principal risks?
• Are movements in principal risks, including movements
into and out of the principal classification, explained?
• Is it clear how the principal risks link to other parts of the
annual report and accounts, in particular the viability
statement, business model, strategy, KPIs and the risk
reporting in the financial statements?
• Do the mitigating activities include specific information
that allows the reader to understand the company’s
response?
Section 5: Communicating uncertainty and risk
communication
25
W9: Communicating uncertainty and risk communication
2. include specific information that allows the reader to
understand the company’s response?
3. How do the companies compare against best practice in Good
practice in annual reports in terms of having a clear articulation of
the organisation’s structure; the linkage between risks, strategic
objectives and the annual report narrative; setting out quantified
risks; and a discussion about how the dynamic of the risk profile has
changed over time including developments in relation to specific
risks disclosed. This is broken down into:-
• Risk management process
• Approach to risk management
• Risk appetite statement
• Clear insight into the dynamics of the risk profile
• Detailed risks with mitigations
• Strong links between risks and strategic objectives
• Demonstration of changing risk profile over time
See the John Lewis Partnership on pg. 22 – how does this compare to
Marks & Spencer in how both companies talk about risk in their Annual
Reports?
Section 5: Communicating uncertainty and risk
communication
26
W10: Technology risk
1. Are Emerging Cyber Risk Topics being addressed?
2. What evidence is there that there is a Cyber-Mature
Corporate Culture?
3. How effective is the company in terms of Cyber
security: Situational Awareness, Corporate
Strategy and Operations and Incident Response?
4. Does the company assess and develop cyber risk
controls that are the most critical?
5. Where would you place the company in its social
media risk maturity model?
6. How is the company addressing artificial
intelligence risk?
Conclusion: in their approach to risk
management, how do you rate EE, AstraZeneca
and RBS against these pictures of how risk
management needs to evolve in the future?
27
Conclusion: in their approach to risk
management, how do you rate EE, AstraZeneca
and RBS against these pictures of how risk
management needs to evolve in the future?
28
Conclusion: in their approach to risk
management, how do you rate EE, AstraZeneca
and RBS against these pictures of how risk
management needs to evolve in the future?
29
Assignment FAQs
How do I manage all the material?
• apply the must know (definitely include) / need to know (include only if it adds
insight and if space permits) / nice to know (leave out) rule. Use tables/figures
(within reason) to reduce your wordcount if needed.
• Use the slides on (a) key sections of reports and (b) report structure – guidance
to focus on key areas
How do I bring in COVID-19?
• Review each company and upto a paragraph on COVID-19 impact. Look at the
other slide deck on COVID-19 risks to help you if needed.
• In the Conclusion on COVID-19 you can say that this was a risk that, though
identified by the UK Government, crystallised in early 2020 and the long-term
impact is hard to assess at this stage. However you should then go on in 3-4
sentences to set out what you feel the wider impact for the sectors and
business to be. The links on slides 20-21 can help.
When can I show my draft work for feedback?
• Email Arif Zaman ([email protected]) no later than Thursday 01 April
30
Academic Integrity and Misconduct
Policy
1. Ensure you are familiar with the Academic
Integrity and Misconduct Policy to be aware of
the expectations for and processes around
academic integrity at the University of
Northampton
2. Available on Canvas in the Syllabus section
3. See especially Paras. 4.10-4.14 on the Use of
Editorial and Proof-Reading Services
31
Arif Zaman
[email protected]
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