Risk Management and Insurance GROUP NAME FOUR GYUS

Risk Management and Insurance • GROUP NAME: FOUR GYUS • PREPARED BY : o Salahaldeen Kurdi 17700531 o Feras Shehema 16700084 o Ergi Dajzmaili 16700590 o Abdulhadi Hussein 17701422

Introduction • Amazon is an American based multinational E-commerce company established in 1994 • Head quartered in Seattle Washington • Separate retail websites for United States , United kingdom, France, Germany, Italy, Canada and Mexico • Profitable since 2001

History of Amazon • Founded by Jeff Bezos in 1994 • Became online in 1995 • Started as online book store , diversified to selling DVDs, CDS, Videos and mp 3 downloads , electronics , furniture , food , toys and jewellery • Initial public stock offering in 1997

Amazon risks

Amazon risks • Financial risks • Market risks • Security risks • Operational risks

Financial risks • Financial risk : is the possibility of losing money on an investment or business venture. • For Amazon the major financial risks are : ØSlowing Revenue Growth ØCurrency risks

Market risks • Market risk : is the risk that the value of an investment will decrease due to changes in market factors • The major market risks for Amazon are : ØCompetition ØOnline market ØCustomer experience ØEconomic conditions

Security risks • Security risk : is the risk related with the security of the company or individuals. • Security risks faced by Amazon : ØCyber attacks ØStealing customer's information ØCredit card fraud ØIntellectual Property Issues

Operational risks • Operational risk : is the prospect of loss resulting from inadequate or failed procedures, systems or policies. Employee errors. Systems failures. ØEmployee errors ØSystems failures ØFraud or other criminal activity

Amazon risk management strategy

Amazon risk management strategy Amazon’s risk management strategy uses the following steps ØIdentify the risk ØAnalyze the risk ØEvaluate the risk ØManage the risk ØMonitor the risk

Identify the risk • How does Amazon identify risks? ØInterviews ØBrainstorming ØChecklists

Analyze the risk • How does Amazon analyze risks? ØPlanning ØOrganizing ØDirecting ØControlling

Evaluate the risk • How does Amazon evaluate risks? ØDetermine the risk size ØEstimate the magnitude of risks that have not bee able to avoid ØThe type of measures to be adopted

Manage the risk • How does Amazon manage risks? ØAvoidance ØReduction ØSharing ØRetention

Monitor the risk • Once risks are identified, analyzed, evaluated and managed , Amazon will then need to monitor risk(s) to see what has changed and how it impacts the company.

Advantages of risk management strategy • A solid risk management strategy leads to : ØSee risks that are not apparent ØFrame regulatory issues ØReduce business liability

Conclusion

Conclusion • failure to manage these risks may have an adverse impact upon Amazon’s strategic goals and objectives. With Amazon’s new risk management framework, it can successfully identify risks, and put in place appropriate measures to ensure risks are properly managed and monitored. This strategy shows that Amazon has a companywide approach to risk management, with local oversight and approvals.

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