have the tools to enable them to manage and report risk. As listed below, specific employees may be responsible for providing advice to managers on specialised risk exposures: Specific Role Specialised risk exposure advice to line managers Human resource - Staff morale (HR) manager - Welfare - Retention Security manager - Personal safety - Loss prevention IT manager - IT disaster recovery - Data security 2. The CEO: Delegating accountability is a crucial element in effectively implementing and monitoring risk management. To ensure risk has an accountable owner, the ultimate responsibility for managing risk remains with the CEO and the management. The CEO is the organisation's ultimate risk manager as they are in the only position charged with the authority and resources to make decisions on how to manage risk. 3. Managers: Every manager should be accountable for managing the risks to which their part of the organisation is exposed in accordance with the organisation's risk management plan. The HPF should make managers accountable for the management of risk in their areas of control such as: - sound delegation of authority - job descriptions containing risk management responsibilities - performance plans External Stakeholders: External stakeholders are entities not within a business itself but who care about or are affected by its performance. Listed below are some examples: 2
4. Customers: Without customers a business would not exist. One of HPF's major objectives therefore should be: To win and maintain customers by developing and providing products and services which offer value in terms of price, quality, safety and environmental impact, which are supported by technological, environmental and commercial expertise. 5. Communities and Governments: Communities and governments are closely tied external stakeholders. HPF operates within communities, and their activities affect more than just customers. Businesses pay taxes, but they are also informally expected by residents to operate ethically and with environmental responsibility. Communities also like to see HPF get involved in events and local charitable giving. Government entities make decisions that can significantly impact HPF's operations. It is important, therefore, for HPF managers to maintain good relationships with local officials to anticipate legal or regulatory changes or community developments that may affect them. 6. Suppliers and Partners: Suppliers and business partners have become more critical stakeholders in the early 21st century. More often, companies build a number of small, loyal relationships with suppliers and associates. This enables each business to develop shared goals, visions and strategies. Buyers and sellers can effectively collaborate to deliver the best value to end customers, which is beneficial to each partner. Additionally, HPF's partners expect that HPF operates ethically to avoid tarnishing the reputation of companies with whom the business associates.
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- Spring '17