...Summary Chevron commits huge resources to tackle environmental risks; this report studies the viability of doing so. We find that (1) it is using a right combination of internal and external tools to increase workers’ awareness, diversify environmental risks and mitigate moral hazard at the same time; and (2) the Decision Making (“DEMA”) system is valuable to the company in providing a systematic framework to quantify environmental risks. Introduction Chevron operates in the business of petroleum and natural gas exploration, production, refining and marketing, and as such faces huge environmental risks such as oil spills and exhaust emissions. Throughout the years Chevron has honoured its claim in “Protecting People and the Environment” by committing a higher proportion of revenues to environmental spending than its competitors. However, environmental risks and the benefits of managing them are by nature hard to be quantified, while the costs are obvious and substantial. This report studies the viability of Chevron’s investments in two steps. First, it examines the tools Chevron uses to manage environmental risks, and explains why they are different from those used to manage other risks. Second, the report will analyse the pros and cons of the novel DEMA system, an attempt by Chevron to systematically quantify environmental risks. What tools is Chevron currently using to manage environmental business risk? We have categorized the tools currently adopted by Chevron as...
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...organizations are risk takers, since the very deed of going into business entail at an enormous. The real hazard is also required in operating a business, but these perils can downplayed, and sometimes held off, through risk management. Risk management is concerned with the preservation of the assets and earning power of a business against the hazard of loss. There is no means of doing away with all the dangers entailed in moving a company, but business owners give the sack at least shorten the odds against them. Risk management is a philosophy, a mode of thinking about potential losses that the small businessperson can use in looking at his or her job. “When talk about the sort of loss that a small commercial enterprise might confront with other than the grocery store-driven losses, losses that you might be subject to due to poor business decisions we are speaking about the sort of loss that can happen to our property or through your negligence, this type of thing. Before any business risk can wield, they must identify, and then the first step in risk management is to find out what kinds of risk the entrepreneur is more probable to see in a finicky job” (Intelecom, n.d). Most business risks can separated into four categories: Property, market, employee, and customers. Each type of commercial enterprise has its own risk, which you have to contend with as soon as you go into that line of study. For illustration, let take retail. With retail, the primary risk is adequate...
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...implement a new customer relationship management (CRM) solution in the corporate office, there are several variables that must first be thoroughly examined. The IT department must address the needs of the office, as well as the legacy hardware and software currently in use. It is apparent that current IT infrastructure will not support the introduction of a new CRM application. The legacy hardware currently in use is outdated require replacement. When implementing a hardware replacement project the IT department will use five major variables of project management that relate to the hardware replacement project. These five major variables of project management include scope, time, cost, quality and risk. Additionally, the IT department must consider what project deliver the best business value to the company. Finally, the risks of the project must be identified, and mitigation strategies must be developed to reduce the project’s risks. Project Management Project management activities require that the IT department properly plan the upgrade, assess the risk associated with the implementation of the project, determine the resources required for implementation, organizing the work, acquiring the materials, both human and materials, delegating tasks, directing the activities, controlling the project implementation, reporting the progress, and controlling the projects execution (Laudon & Laudon, 2008). Five major variables of project management relate to the hardware replacement...
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...HB 436:2004 Handbook Risk Management Guidelines Companion to AS/NZS 4360:2004 Originated as HB 142—1999 and HB 143:1999. Jointly revised and redesignated as HB 436:2004. COPYRIGHT © Standards Australia/Standards New Zealand All rights are reserved. No part of this work may be reproduced or copied in any form or by any means, electronic or mechanical, including photocopying, without the written permission of the publisher. Jointly published by Standards Australia International Ltd, GPO Box 5420, Sydney, NSW 2001 and Standards New Zealand, Private Bag 2439, Wellington 6020 ISBN 0 7337 5960 2 Preface This Handbook provides generic guidance for establishing and implementing effective risk management processes in any organization. It demonstrates how to establish the proper context, and then how to identify, analyse, evaluate, treat, communicate and monitor risks. This Handbook is based on the Joint Australian/New Zealand Standard, AS/NZS 4360:2004, Risk management (the Standard). Each Section contains an extract from the Standard, followed by practical advice and relevant examples. This basic guide provides a generic framework for managing risk. It may be applied in a very wide range of organizations including: • public sector entities at national, regional and local levels; • commercial enterprises, including companies, joint ventures, firms and franchises; • partnerships and sole practices; • non-government organizations; and • voluntary organizations such as charities...
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...revenues and 9% of the total cost to their environmental risk strategy. In the same year, Chevron’s major competitors Exxon and Mobil spent 1.1% and 0.9% of their revenue respectively on environment risk strategy. This was due to Chevron positioning itself both publicly and internally as a company that was responsible steward of natural environment. Furthermore, we analyzed their Internal and External Risk Management tools and compared them with the Quantitative Risk Management tool (DEMA). Internal Risk Management:- Traditionally, risk management decision making at Chevron was more judgmental than analytical. Their risk management across the organization relied on managerial judgment which followed Policy 530. There were ten key elements which were part of Policy 530 such as compliance assurance, community awareness and outreach, energy and resource conservation etc. All these elements were to be implemented through adherence to the managerial practices. Incentive compensation was one of the major savings plan used by 98% of the employees within Chevron but it was largely based on profitability of the corporation and not majorly linked to the attainment of safety or environmental objectives. But senior management was required to review the overall environmental performance. There were no penalty in place but if the senior manager did not adhere to the environmental goals they could lose their jobs. External Risk Management:- Chevron followed a general corporate strategy of...
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...01 Technical risk management relevanT To acca QUalificaTion PaPer P4 The management of risk is a key area within a number of ACCA papers, and exam questions related to this area are common. It is vital that students are able to apply risk management techniques, such as using derivative instruments to hedge against risk, and offer advice and recommendations as required by the scenario in the question. It is also equally important that students understand why corporations manage risk in theory and in practice, because risk management costs money but does it actually add more value to a corporation? This article explores the circumstances where the management of risk may lead to an increase in the value of a corporation. Risk, in this context, refers to the volatility of returns (both positive and negative) that can be quantified through statistical measures such as probabilities, standard deviations and correlations between different returns. Its management is about decisions made to change the volatility of returns a corporation is exposed to, for example changing a company’s exposure to floating interest rates by swapping them to fixed rates for a fee. Since business is about generating higher returns by undertaking risky projects, important management decisions revolve around which projects to undertake, how they should be financed and whether the volatility of a project’s returns (its risk) should be managed. The volatility of returns of a project should be managed if...
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...PROJECT MANAGEMENT 2 4.0 PROJECT MANAGEMENT PROCESS 3 5.0 PROJECT LIFE CYCLE 3 6.0 FIRST PROJECT MANAGEMENT PROCESS- PROJECT INITIATION 5 6.1 BENEFIT AND LIMITATION IN PROJECT INITIATION PROCESS 7 7.0 SECOND PROJECT MANAGEMENT PROCESS- PROJECT PLANNING 11 7.1 BENEFIT AND LIMITATION IN PROJECT PLANNING PROCESS 13 8.0 THIRD PROJECT MANAGEMENT PROCESS- PROJECT EXECUTION 14 8.1 BENEFIT AND LIMITATION IN PROJECT EXECUTION PROCESS 16 9.0 FOURTH PROJECT MANAGEMENT PROCESS- CONTROLLING/MONITORING 18 9.1 BENEFIT AND LIMITATION IN PROJECT CONTROLLING/ 20 10.0 FINAL PROJECT MANAGEMENT PROCESS – CLOSING PROCESS 22 10.1 BENEFIT AND LIMITATION IN PROJECT CLOSING PROCESS 23 11.0 BIBLIOGRAPHY 25 12.0 APPENDICES 27 1.0 INTRODUCTION To know the benefit and limitation of using single process for managing projects, firstly we need to know what is project, project management and what is the process to manage projects. 2.0 PROJECT Project is viewed as a conversion or transformation of some form of input into an output. The inputs are some form of want or need which is satisfied through the process. (Harvey Maylor, 1996) 3.0 PROJECT MANAGEMENT According to Project Management Methodology guidebook, project Management is the process of achieving project objectives (schedule, budget and performance) through a set of activities that start and end at certain points in time and produce quantifiable and qualifiable deliverables. Project management is the...
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...department for example faces the decision to implement a new CRM solution along with installing new hardware. By moving forward with the CRM application change, the IT department is putting itself at risk. With excellent project management and analysis, the development of new CRM applications and hardware can result in a low risk high gain production if managed accordingly. Throughout this paper I will discuss the analysis, which should be conducted through project management. I will discuss the five variables of the IT department’s project management which include scope, time, cost, quality, and risk as to how they relate to the department’s decision making with the new application launch. Points that should be considered prior to selecting projects for the best business value will also be discussed. I will then conclude this paper with the factors that influence project risk and what I believe can minimize them. I will begin with the IT department scoping the project for what systems, applications, and tools will be used in this project. The company is considering to update its current CRM system which is not compatible with its corresponding out dated hardware. The department has to scope the tools necessary to support the new CRM application, which is up to date hardware. Project management should be mindful that the primary tool needed to fulfill this project is updated hardware along with CRM application training for end users to become familiar with the new systems and hardware...
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...Project Management Institute A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition Licensed To: Jorge Diego Fuentes Sanchez PMI MemberID: 2399412 This copy is a PMI Member benefit, not for distribution, sale, or reproduction. Library of Congress Cataloging-in-Publication Data A guide to the project management body of knowledge (PMBOK® guide). -- Fifth edition. pages cm Includes bibliographical references and index. ISBN 978-1-935589-67-9 (pbk. : alk. paper) 1. Project management. I. Project Management Institute. II. Title: PMBOK guide. HD69.P75G845 2013 658.4’04--dc23 2012046112 ISBN: 978-1-935589-67-9 Published by: Project Management Institute, Inc. 14 Campus Boulevard Newtown Square, Pennsylvania 19073-3299 USA Phone: +610-356-4600 Fax: +610-356-4647 Email: customercare@pmi.org Internet: www.PMI.org ©2013 Project Management Institute, Inc. All rights reserved. “PMI”, the PMI logo, “PMP”, the PMP logo, “PMBOK”, “PgMP”, “Project Management Journal”, “PM Network”, and the PMI Today logo are registered marks of Project Management Institute, Inc. The Quarter Globe Design is a trademark of the Project Management Institute, Inc. For a comprehensive list of PMI marks, contact the PMI Legal Department. PMI Publications welcomes corrections and comments on its books. Please feel free to send comments on typographical, formatting, or other errors. Simply make a copy of the relevant page of the book, mark the error, and...
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...University of Phoenix Material Appendix A: Human Resource Risk Using the Internet, research several different HR risk management seminars. Cite at least five different seminars (these may be presented by the same company). Identify the HR risk(s) the seminar features. Create at least three questions per risk factor you would like the seminar to answer. |Seminar Title |Risk Factor(s) |Question 1 |Question 2 |Question 3 | |Voluntary Benefits are Revolutionizing|Benefits Worth |Is there a way to measure talent |What is the most used and most |How does HR make a decision on which | |the Compensation/Total Rewards |Talent Retention/Attraction |retention versus rewards program |attractive voluntary benefit to the |Voluntary Benefits are most helpful to| |Equation | |incorporating voluntary benefits? |employees? |the employees | |(Rotella, J., 2013, SHRM Conference) | | | | | |Risk Management Seminar |Insurance |Does providing this training provide |Is there a correlation between an ...
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...Security Requirements and the Possible Risks associated with the Benefits Elections Systems of Huffman Trucking Company CMGT/442 Security Requirements and the Possible Risks associated with the Benefits Elections Systems of Huffman Trucking Company Huffman Trucking has sent out a service request regarding the development and installation of a benefits election system to support the tracking and reporting of employee (union and non-union) benefits (University of Phoenix, 2011). Per this request, this paper will discuss possible security requirements and possible risks that may occur or be associated with the development and implementation of the Benefits Elections Systems. Typically, information on each employee and his or her respective benefits package is stored and managed using some type of database system. This can be either a hardcopy file version or an electronic one. Whatever method is used, security measures have to be put in place to protect each employee from the loss or theft of their information, as well as protect company assets from possible legal action. The purpose of this paper is to discuss some of the potential security requirements of Huffman’s system as well as the some of the risks associated with the implementation of this type of system. When deciding what security requirements will be needed to implement the Benefit Election System one will need to keep in mind of securing both the company and employees’ data from breaches. Security breaches...
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...CHAPTER ONE 1.0 INTRODUCTION Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Project risk management includes the processes concerned with identifying, analyzing, and responding to project risk. It includes maximizing the results of positive events and minimizing the consequences of adverse events. Managing risk therefore, is an integral part of good project management, and fundamental to achieving good business and project outcomes and the effective procurement of goods and services. Risk management provides a structured way of assessing and dealing with future uncertainty. 1.1 PROJECT MANAGEMENT A project can be defined as a series of related jobs usually directed toward some major output and requiring a significant period of time to perform. According to the Project Management Institute, the discipline of project management can be defined as the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve pre-determined objectives of scope, cost, time, quality and participation satisfaction. Furthermore, project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific projects. 1.2 RESPONSIBILITY OF A PROJECT MANAGER The Project Manager is...
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...Management of Change Management of change process entails controlling and understanding exposure to risks and hazards that can result to poor health or injuries. This concept ensures that risk management is done in an effective and efficient approach. For instance, if an organization is putting in place new machinery, sound management of change process investigates on the risks involved, evaluate the impact and guide the change to reduce negative aspects of the change. In this capacity, the management of the change process ought to be an enabler that provides strategies to respond to changes, with minimal risks involved. This does not only help entities but also protect the staff from hazards (Green & Hauser, p.27). To manage the risk, management of change process embarks on answering seven questions that form the backbone of the process of reducing risks. As the management answers the seven questions, numerous risks associated with the change are reduced (Green & Hauser, p.42). These questions include: a) Who is responsible for raising the change? This seeks to identify individuals who are sponsoring the process and take them accountable for foreseen and unforeseen risks. b) Why are we undertaking the change? This question seeks to evaluate the importance of the change in relative to the objectives of the organization. It is a cost benefits analysis that balances between negative and positive outcomes. c) What benefits are associated with the change...
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...The Optimal Reference Book: Project Management Success Factors Extraordinary insight™ into today’s education information topics Table of Contents Why 70% of Government IT Projects Fail, Quality Project Management for Education Agencies .............................................................................................. 5 About the Author.................................................................................................... 8 Foreword................................................................................................................. 9 Selecting the Right Vendor to Manage Your Project .............................................. 11 Project Governance........................................................................................... 13 Project Risk ....................................................................................................... 14 Issue Management............................................................................................ 14 Education Agency Uniqueness .......................................................................... 14 Unfunded Mandates and Local Control............................................................. 15 ESP’s Quality Project Management (QPM) for Education Agencies ......................... 16 QPM Overview.................................................................................................. 16 QPM Principles...............................................
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...other markets to expand. Corporate risk deals with being able to manage the different types of risk in an organization. Some key factors of risk can include; identification issues, accounting issues, financial impacts towards the organization, being able to allocate resources for the organization, as well as maintaining policies and procedures. Risk Identification When undertaking new initiatives there is always a certain amount of risk involved. Identifying these risks may perhaps decrease time, save the quality of the products, and increase customer satisfaction. Risk definitely happens in everyday life. Many businesses and executives cannot accept risk especially when making business decisions. It is good to identify different types of risk so that organizations like Wal-Mart have different opportunities and ideas to decrease the different threats that organizations may face. Corporate risk management is the ability to handle the risks that come towards an organization and determining how to handle the risk and determining the levels of risk. Taken into consideration the economic environment the most important risks are the finances of an organization. Wal-Mart does not want to lose money so the business needs to be careful and to extensively examine each project that can impact the organization. The relevance of risk that can be identified primarily deal with a variety of levels that the type of risk falls into. Corporate risk is a big concern in many organizations...
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