Overview

A company is operating in the retailing environment that sells hardware (e.g., Home Depot or Lowe's). As a marketing manager, it is one's responsibility for assessing potential risks in a country before the company enters into that market. The decision-making process in this team is formalized—that is, team members use standardized evaluation criteria to assess the risks as objectively as possible. A preliminary review has reduced the number of choices to three countries:

• Argentina,
• Turkey, and
• Russia

The marketing manager is asked to assess the country risks (political, legal, economic) for each country before making a recommendation about each country to the team.

Directions

1. Download the Risk Assessment document (attached below). The first column—covering potential risks the business could face in a particular country's market—has been filled out already.
2. Review the document, and then visit globalEdge, CIA World Factbook, and at least one other resource to collect information about each of these countries.
3. Once the research is gathered, complete the rest of the table for each country. Specifically, do the following:
   • For the second column (Associated Risks), list as many potential risks that can be associated with the activity area based on the research of that country environment.
   • For the third (Severity) and fourth (Probability) columns, input the data from the ratings provided in the color-coded Risk Matrix table.
   • For the fifth column (Risk Score), enter the risk score (the intersection of your selections from Columns 3 and 4 (Severity & Probability).
   • In the final column—Method(s) to Manage the Risk—describe what methods will be used to minimize the chances of these various risks happening and/or what steps should be planned to take for controlling the resulting damages from these risks.

Source for risk matrix: https://www.fivecolleges.edu/system/files/attachments/Risk%20Matrix%20and%20Sample%20Tables.docx

  
    

Transcribed Image Text:

+ Probability LOW This risk has rarely been a problem and never occurred at a college event of this nature MEDIUM This risk will MOST LIKELY occur at this event HIGH This risk WILL occur at this event, possibly multiple times, and has occurred in the past LOW NEGLIGIBLE small/unimportant; not likely to have a major effect on the business operations Risk Matrix MARGINAL Severity minimal importance; influences the business operations but will not be major CRITICAL serious/important; will affect the business operations in a negative way/suffers serious consequences CATASTROPHIC maximum importance; could result in loss of all investments/potential jail time or bodily injury to management staff HIGH LOW (1) MEDIUM (4) MEDIUM (6) HIGH (10) LOW (2) MEDIUM (5) HIGH (8) EXTREME (11) MEDIUM (3) HIGH (7) HIGH (9) EXTREME (12) EXTREME Explanation of Risk Ranking MEDIUM If the consequences to this event/activity are LOW/MEDIUM, your group should be OK to proceed with this event/activity. It is advised that if the activity is MEDIUM, risk mitigation efforts should be made. If the consequences to this event/activity are HIGH, it is advised that you seek additional event planning support. If the consequences to this event/activity are EXTREME, it is advised that you do not hold this event without prior consultation with Risk Management + Probability LOW This risk has rarely been a problem and never occurred at a college event of this nature MEDIUM This risk will MOST LIKELY occur at this event HIGH This risk WILL occur at this event, possibly multiple times, and has occurred in the past LOW NEGLIGIBLE small/unimportant; not likely to have a major effect on the business operations Risk Matrix MARGINAL Severity minimal importance; influences the business operations but will not be major CRITICAL serious/important; will affect the business operations in a negative way/suffers serious consequences CATASTROPHIC maximum importance; could result in loss of all investments/potential jail time or bodily injury to management staff HIGH LOW (1) MEDIUM (4) MEDIUM (6) HIGH (10) LOW (2) MEDIUM (5) HIGH (8) EXTREME (11) MEDIUM (3) HIGH (7) HIGH (9) EXTREME (12) EXTREME Explanation of Risk Ranking MEDIUM If the consequences to this event/activity are LOW/MEDIUM, your group should be OK to proceed with this event/activity. It is advised that if the activity is MEDIUM, risk mitigation efforts should be made. If the consequences to this event/activity are HIGH, it is advised that you seek additional event planning support. If the consequences to this event/activity are EXTREME, it is advised that you do not hold this event without prior consultation with Risk Management