Question

From Chapter 22 Implementing Enterprise risk management.

JAA Inc.—A Case Study in Creating Value from Uncertainty: Best Practices in Managing.

Chapter 22:  JAA Inc.—A Case Study in Creating Value from Uncertainty: Best Practices in Managing Risk

1. Why is it important that risk criteria be created as per JAA? Do you think it is possible for any reasonable risk treatment plan to be in place without creation of such criteria?

Answer 1

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Why is it important that risk criteria be created as per JAA? Do you think it is possible for any reasonable risk treatment plan to be in place without creation of such criteria?

It is so important to look at all of your possible outcomes before venturing into the unknown. Considering the fact that risk criteria can include items such as the cost and benefits associated with it or the concerns of stakeholders. Our text talks about how the potential US and European Union Free Trade Agreement is an important risk because of the impact on JAA’s business. What it means is that JAA needs to have a risk management plan from both external and internal sources already in place.

Since the risk criteria can include items such as the cost and benefits associated, legal requirements and the concerns of the stakeholder it is important to look at all possible outcomes before venturing into the unknown. Risk criteria is important for JAA to create because it will help with the overall growth of the company. It is stayed in the book that, One of the most important risk sources is the potential U.S. and European Union Free Trade Agreement. It will highly impact JAA’s business and result in new opportunities and threats. This means that JAA needs to have a risk management plan in place for these opportunities and threats from both internal and external sources.

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