Corporate risk management Essay Example | Topics and Well Written Essays - 2000 words - 1

Corporate risk management - Essay Example In the year 2008 alone, the United States fire department indicated having responded to 1,451,500 fires in the country that resulted to 3,320 fatalities and over US $ 5,478,000,000 worth of property loss (Fodor Travel Inc 2008). The most recent fire outbreak was the California fires which resulted to losses of about US $ 1.5 million. Following this consideration, fires pose a risk to corporations and thus fire protection is quite critical in the modern era of highly dynamic consumerism patterns (Huang 2009). The only way to guarantee sustainable growth and development in a country is based on the holistic capacity to address all the incumbent risks factors. It is from this consideration that fire protection becomes very critical in modern risk management as a way of reducing its extended affects. Managing a risk is a cycle not necessarily geared towards eliminating the risk but ensuring that the losses that could be incurred in the event of a disaster are limited. The risk management cycle has been broadly broken down into four classes namely; evaluation of the risk, management of the risk, measurement of the risk and assessment of the risk. These stages determine how best to plan for a risk before it happens and the best course of action a corporation should take incase a disaster struck. Risk management is the process of identifying, assessing and prioritizing risks which is then backed up by a systematic and calculated application of available resources to limit, monitor closely, control and establish how the identified risks can be effectively handled. The plan devised with the available resources should be geared towards minimizing the probability of negative effects that could come with the occurrence of a risk. For this paper, the identified risk is fire since it poses a huge risk to both property and people. A good risk management

Employee Compensation Essay Example | Topics and Well Written Essays - 1000 words

Employee Compensation - Essay Example This essay stresses that organizations that are since committed to developing a compensation system that is designed around performance will want to consider the use of incentive pay. Typically given in addition to-rather than in place of-the basic wage, incentive plans should be viewed as an additional dimension to the wage structure. Incentives can be paid based on individual, group, or organization wide performance – a pay-for-performance concept. This paper makes a conclusion that the compensation structure consists of lavishing exorbitant sums on management level while penny-pinching on pay for other workers. This is an example of a harmful business model. The company can, and should narrow its pay gap by bringing down the top – and lifting the bottom up. It has a pay for performance plan for the management level employees. This is strength of the compensation structure but this need to be stretched out to the entire workforce so that the weakness exhibited by way of the huge executive compensation. To conclude, instead of cutting down on the executive compensation package, it would be beneficial if an opportunity is given to enter the profit sharing plan allowing employees to share in the success of a firm by distributing part of the company’s profits back to the workers. In essence, employees become owners of the company. The logic behind profit-sharing plans is that they increase commitment and loyalty to th e organization.