SW Translations is a little interlingual rendition company runing for 50 old ages with its central offices in Slough, UK. It employs two people and has a web of 1.400 free-lance transcribers. Harmonizing to fiscal information its turnover for twelvemonth 2009 was about 120.000. SW Translations has loyal clients in the field of energy companies and public governments. My function in the specific company is that of the Business Development Manager.

Harmonizing to Bartlett et Al. ( 2007, pp.94-97 ) , some of the most important hazard designation techniques sing hazards environing a company are: “ checklists, prompt analysis, brainstorming, interviews, SWOT analysis etc ” .

For the intents of this specific company the writer chose to continue with the checklist attack and the SWOT analysis.

One of the most characteristic checklists is the 1: “ ( … ) provided in the Boardroom Briefing to the Turnbull Report ” ( Coyle, 2004, p. 34 ) . Harmonizing to this checklist hazards are categorized into four classs, viz. concern or strategic hazards, fiscal hazards, conformity hazards and operational and other hazards.

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Equally far as the specific company, SW Translations is concerned, after carefully analyzing its state of affairs in comparing to the Turnbull checklist what arises is that it faces concern, fiscal and operational and other hazards. The class conformity hazards does non use to this company as it is a little one, so it is non listed and furthermore there is no possibility of transgressing any ordinances as this would intend the terminal of the company in footings of bad promotion.

Sing concern hazards, the most of import hazard that this company is confronting is the fact that it has no concern scheme and relies chiefly on its web of friends to supply the interlingual rendition occupations. The fact that most of its friends are old is non helping the state of affairs for the fact that they will retire in a few old ages ‘ clip means that there is no existent hereafter for the company.

Furthermore, there is an utmost competitory force per unit area sing monetary value and market portion that is peculiarly important for little companies such as this 1. This force per unit area increases with the dynamic entryway of engineering in the interlingual rendition industry because with the usage of it, viz. machine interlingual rendition and nomenclature memories such as Trados and Deja Vu, which are chiefly used by younger transcribers, monetary values decline. The fact that this interlingual rendition bureau does non utilize such engineering and its transcribers ‘ web includes largely older transcribers is non helpful at all for its concern public presentation.

A 3rd hazard confronting this company is that it is excessively slow to introduce so that it distinguish from the other companies and get a competitory advantage. Its turnover is excessively low for it to be used in investings and enlargement and the proprietor ‘s will to retire in two old ages means that there is low involvement for the company ‘s enlargement and invention.

Furthermore, the turnaround clip of undertaking petitions is truly high as the new Office Manager of the company has to rede the proprietor and manager of the company in order to continue to any concern operation. In this peculiar industry clip is of utmost importance as it takes a few proceedingss to get or lose a new occupation as rivals are waiting to take the opportunity.

Equally far as fiscal hazards are concerned the first hazard to play an of import function for SW Translations is the market hazard where one can detect market fluctuations. For illustration, the recognition crunch has affected this industry as it has affected others and companies such as this should expect this sort of factors.

Additionally the addition and lessening of foreign exchange rates affects this industry as free-lance transcribers every bit good as interlingual rendition bureaus may revise their credence of foreign currencies in order to profit from this state of affairs or to forestall an eventual loss.

As it appears by the balance sheets of SW Translations this company misuses fiscal resources because although it has a rather high turnover the net net income is highly low. This is owed to the fact that the power of providers, in this instance free-lance transcribers is high as the company depends entirely on free-lance transcribers, who take advantage of their expertness and handiness and charge truly high rates. As a consequence, two tierces of the turnover is the cost of gross revenues, which does non let any investing or enlargement possibility for the company.

One more class of fiscal hazards that this specific company faces is traveling concern jobs topped with determinations based on uncomplete or defective information. The fact that the proprietor is in retirement age and moreover wants to relocate to another state does non let him to confront the company ‘s traveling job. For the last three old ages the company is in diminution but the proprietor is non willing to alter his manner of believing so he continues to believe that everything is all right. If he checked the industry ‘s environment challenges, analyzed balance sheets or took advice from fiscal experts the state of affairs would be rather different.

Finally, refering operational and other hazards there is a broad range to analyse. Sing interlingual rendition companies, what is truly of import to analyze is project hazards because the client ‘s dependability, the undertaking trouble, the necessary package for the executing of the undertaking every bit good as the word count, the deadline and human resources in general are of utmost significance to the endurance of interlingual rendition companies. Each of these hazards has to be faced so that the concluding merchandise is successful.

One farther operational hazard of SW Translations is that the proprietor is non familiar with new engineering and this is an hindrance to the normal operation of the company. One specific illustration is that he does non hold a nomadic phone so the Office Manager can non make him in instances of concern exigencies.

Furthermore, the company ‘s concern procedures are non aligned to customer/market demand as the company remains bound to a Paleolithic manner of operating with difficult transcripts of transcribers ‘ sketchs and booklets in contrast to other interlingual rendition companies, which work under to the full automated procedures so they decrease turnaround times to the lower limit. For illustration, undertaking directors do non hold to delve out from booklets the proficient transcribers ‘ contact inside informations and rates as they already have electronic databases at their disposal.

Furthermore, the proprietor of SW Translations has lost his entrepreneurial spirit and girls or ignores concern chances as he is at an age where he merely thinks about his retirement to another state and his amusement. In add-on he receives income from belongings rental so he does non trust chiefly in the interlingual rendition company in order to worry about its hereafter.

Refering trade name direction, although this company operates for 50 old ages, the proprietor does non take advantage of the trade name name in order to publicize and spread out his concern. He is based merely on word of mouth advertizement. And apart from this he is over trusting on his cardinal transcribers and clients. Particularly in the instance of clients, 85 % of the company ‘s turnover derives from three major clients ; hence if any one of them decides to halt collaborating with this interlingual rendition company it will confront definite devastation.

Harmonizing to the SWOT analysis about SW Translations one can see that there are rather adequate chances for this company to alter its state of affairs and expand. First of all the company can alter its full outlook and come into contact with new engineering helping interlingual rendition undertakings such as a modern web site that can offer the clients an on-line quotation mark about their interlingual rendition demands and by and large follow a dynamic enlargement. Furthermore, the company can spread out its web through appropriate selling and advertizement that has non done so far. Last, it can use for rank to assorted professional interlingual rendition associations, which can add to its position and pull more clients.

Equally far as menaces are concerned, the most of import of all is the company ‘s continuity to run in a dated and old fashioned mode, which does non let its entryway into the new epoch and its development later. Adding to this is the fact that the major per centum of turnover in the interlingual rendition industry is acquired by big interlingual rendition companies belonging to groups of companies ( mention ) ; hence there is small room for little companies to derive an equal portion of interlingual renditions. Furthermore the fact that there is a low barrier to entry licenses many new little companies to come in this industry and attract clients as there is no exchanging cost for them.

Undertake a structured appraisal, utilizing possibly, a hazard map or hazard matrix of the impact of the peculiar hazards and the likely happening of these hazards.

Harmonizing to Ansell and Wharton ( 1995, p.7 ) “ The procedure of gauging the chance and size of possible results, and so measuring the alternate classs of action is one of hazard appraisal ” . If one classifies hazards harmonizing to their chance they can be divided into: frequent, probably, occasional, rarely and unlikely. If on the other manus, one uses impact to sort them there can be classs such as: highly high hazard, high hazard, moderate hazard and low hazard ( Bartlett et al. , 2007 ) . There is a hazard map that combines the chance of hazards with their impact and allows a research worker to measure the importance of each hazard and how he/she must respond to it.

For the intents of SW Translations the writer of this specific assignment drafted a Risk Assessment Table ( Appendix 2 ) where hazards were rated harmonizing to their chance and their significance to the company. The rates of hazards were later inserted in the tabular array below uniting their chance and impact ( South Texas College, 2008 ) .

Risk Assessment Matrix

PROBABILITY ( 1-5 )

IMPACT ( 1-10 )

Frequent ( 5 )

Probably ( 4 )

Occasional ( 3 )

Seldom ( 2 )

Unlikely ( 1 )

Highly High Hazard

9-10

14,15

1,5,9,11,13

High hazard

6-8

4,8

2,3,7,10,12,17

6,16

Moderate Hazard

3-5

Low Hazard

1-2

Harmonizing to both tabular arraies, hazards characterized as highly high and frequent are:

Owner lost his entrepreneurial spirit Company ‘s concern procedures are non aligned to customer/market demand.

Owner misses or ignores concern chances.

The following class harmonizing to the tabular array above is highly high hazards but likely:

No concern scheme

Turnaround clip of undertaking petitions.

Traveling concern jobs.

Undertaking hazards.

Company ‘s concern procedures are non aligned to customer/market demand.

Both these classs are highly hazardous, which means that they have to be controlled so that they do non endanger the company ‘s hereafter. Therefore at that place have to be ratings and proving to happen appropriate solutions for them. If this does non go on in the close hereafter so the company ‘s jobs will increase and this may take to catastrophe.

Sing the staying hazards, one can detect that they fall in the class of high hazard but the chance of them go oning varies from likely to seldom. This means there should be a state of affairs between observing and supervising before traveling to forestalling them. As a consequence, the hazards mentioned below are non the first precedence of the company:

Excessively slow to introduce.

Misuse of fiscal resources.

Dynamic entryway of Technology

Decisions based on uncomplete or defective information

Owner non familiar with new engineering

Over trusting on his cardinal transcribers and clients

Competitive force per unit area

Foreign exchange rates

Brand direction

In decision, what one can understand from the hazard designation and appraisal parts above, SW Translations is a company that faces and will confront in the close future high hazards. This is chiefly owed to the proprietor ‘s denial to set to the new world and follow modern direction methods. The fact that he intends to retire shortly has influenced the full company as there is no possibility of growing.

Part B

3. Formulate schemes for taking advantage of the chances, or schemes for commanding the identified menaces that you have identified and discussed in Part A.

In footings of literature environing schemes to take advantage of chances or control menaces, there is a overplus of options and methods that can use from the largest company to the smallest 1. Sing SW Translations and harmonizing to the hazard designation and appraisal drafted for the intents of the specific assignment, this company will confront a series of menaces but there are besides chances to take advantage of.

Coyle ( 2004 ) supports the latest method for hazard controlling is the Enterprise Risk Management ( ERM ) , where companies decide to “ mensurate, control and pull off all hazards of the organisation across all hazard classs and merchandise lines ” ( Coyle, 2004, p.79 ) . Specifically for SW Translations, the hazards identified are governable hazards, viz. those hazards that relate to “ hapless direction and supervising, a deficiency of organisation and communicating, hapless processs and policies and operational mistakes ” ( Coyle, 2004, p.80 ) . In order for the company to avoid the hazards identified or cut down their impact it should manage them at beginning. In other words, the company should alter its overall policy and mission so that it confronts with the root of jobs.

As mentioned in Part A of the assignment, the highest hazards for SW Translations are the proprietor ‘s loss of entrepreneurial spirit and the fact that he misses or ignores concern chances. These two hazards are hard to be prevented from blockading the company ‘s hereafter as the proprietor has to alter his full outlook in order to halt devastation from go oning.

However, for the intents of this specific assignment the writer will non take into consideration that the proprietor wants to sell the company and retire and it will be supposed that he truly wants the company to develop. Therefore the writer will take as granted that the proprietor of the company has renewed his involvement in the company ‘s success and will manage menaces to company and exploit chances.

Enterprise Risk Management is what this company should use since it has to cover with a figure of hazards and undertake them all in order to alter its full dynamic. As a consequence, the proprietor of SW Translations will develop commanding methods for every hazard endangering the company ‘s hereafter.

First of wholly, there has to be a clear concern scheme so that both the proprietor and the director of the company know what they want this company to accomplish and make up one’s mind what to make to manage it. If there is a clear vision and mission, there will be no misinterpretations as to the manner the company has to run expeditiously.

The 2nd measure is to apportion duties in order for each individual to cognize what he/she is responsible for. This manner, hazards such as high turnaround clip of undertaking petitions will prehend to be. The director will make up one’s mind on her ain and will non necessitate the proprietor ‘s blessing to continue to a undertaking ; therefore the quotation mark to the prospective clients will be delivered in half the clip it needed antecedently. To this method of hazard control, hazard transportation may besides use since it “ involves go throughing on the duty for bearing the impact of a menace to another party ” ( Bartlett et al, p. 110 ) . Since the company ‘s director has better methods to manage the turnaround clip of undertakings this means that the hazard will be reduced.

The company ‘s processs will hold to be reinvented as they do non lend to any efficiency and they threaten to convey about undertaking losingss. The new technological chances will be of great aid in commanding this peculiar menace to the company. The archiving of files every bit good as the full undertaking handling will hold to be automated to the point that it will diminish waste of working clip by the director. In other words, alternatively of seeking to delve out transcribers ‘ sketchs from old files she can cover with more important issues such as the concern development.

In add-on, in footings of chance development, the proprietor should strategically react to competitory force per unit area and happen the manner to diminish interlingual renditions ‘ disbursals and bringing clip. The most expensive and clip devouring factor is the fact that the company cooperates with free-lance transcribers who are by and large expensive. This can be handled strategically, if the company hires at least one in-house transcriber who will cover with the most demanded linguistic communication combination and will be remunerated at a lower degree than free-lances do. This will besides work out the job of turnaround clip, as for the specific linguistic communication combination the company will non hold to wait for a free-lance to be available.

Finally, the proprietor of SW Translations should halt trusting merely on his web of familiarities to pull clients and get down utilizing selling and advertisement tools to spread out to new markets. The fact that the company ‘s director is immature and willing to cover with such issues facilitates this scheme. If tools such as Search Engine Optimisation ( SEO ) or engagement to professional associations and conventions are used so the company ‘s name that exists for over 50 old ages will be ideally exploited.

In general, what experience shows and as Bartlett et Al ( 200, p. ) support “ ( … ) proactive attacks produce a more effectual control over hazard than an sole trust on reactive attacks ” . Therefore, it is better to manage a job before it becomes mammoth or affects other operational countries than to seek and restrict its consequence after its manifestation.

4. If a director/ executive/ director of your administration was heard to state, “ All of this administration ordinance, describing and form-filling is a waste of clip. Of class the stakeholders can trust on the directors/ executive/ directors to take attention of their involvements. All of this excess paperwork merely encourages us to take our oculus off the organizational scheme and likely leads to greater hazard for stakeholders. ”

Indicate how you would react to this conjectural statement refering the relevancy of administration ordinance.

If a director/ executive/ director of my company expressed the sentiment that administration is a waste of clip and leads to greater hazard for stakeholders I would seek to convert him/ her that it is non true since both theory and pattern have proved otherwise. Harmonizing to Bartlett et Al ( 2007, p.61 ) : “ Hazard administration is the ability to reexamine and command the consequences of hazard direction activities in relation to a undertaking, a programme of undertakings or the concern as a whole ” . Therefore, as it appears by the definition alone it is of great importance to use hazard administration processs to a company if the desirable consequence is for everything to run swimmingly.

Following several literature research it becomes apparent that companies are under force per unit area by authoritiess to integrate due diligence in their patterns and administration will certainly help as it will forestall the negative effects of hazards that would look in a due diligence control. Particularly after prostrations of companies such as Enron and Worldcom, corporate administration has obtained greater importance on the portion of stockholders every bit good as stakeholders. Attempts of establishments to put ordinances for the protection of stakeholders and stockholders were the Combined Code that was issued in 1998 or the Cadbury Report of 1992 and the Greenbury Report of 1995 ( Financial Reporting Council, 2009 ) .

There are companies that do non use any signifier of administration but operate under the wants of the proprietor. This is most usual in the instances of little companies such as SW Translation mentioned in Part A of the assignment. It has been proved nevertheless that the fact that there were no peculiar methods to cover with clients ‘ petitions, transcribers ‘ troubles and other issues had a strictly negative consequence on the company ‘s public presentation. This is the consequence of people believing that administration is a rigorous control of their actions and merely describe outlining and form-filling that wastes directors ‘ cherished clip.

The intent of corporate administration is non to command managers/ executives/ managers because they may prosecute into deceitful actions but to do certain that the involvements of stakeholders will non be negatively affected. Sometimes even if the managers act upon good purposes they fail to take into consideration possible hazards stemming from some investings. Efficient corporate administration is a manner to avoid such fortunes.

Stakeholders can help directors in using efficient corporate administration. However in order for this to go on as Hess ( 2007, p.471 ) maintains “ To hold meaningful stakeholder battle requires that we foremost have a robust information-based transparence policy with comparable informations ” . If stakeholders have entree to indispensable information so they will be able to supply their penetrations on possible schemes for the company to execute under success manner. This will besides take some of the load from the managers/ directors/ executives ‘ and let them to cover with organisational scheme more expeditiously since they will non hold to inquire if their schemes will guarantee stakeholders ‘ involvements as they will hold a more immediate response from them.

If hazards are managed and there is internal control there are few things that can harm a company without the managers/ executives/ managers detecting. However, as Coyle ( 2004, p. 252 ) supports “ The reappraisal of controls by the board of managers ( aˆ¦ ) should include operational controls, controls to guarantee conformity with Torahs and ordinances and hazard direction ( aˆ¦ ) ” . As a consequence, it is non plenty to look into the fundss of a company but operational and jurisprudence conformity controls should happen on a regular basis.

Many big companies appoint audit commissions inside their company to command operations, fundss and jurisprudence conformity. This is an effectual manner to let go of directors from the load to fix studies of assorted signifiers. However, this does non intend that they do non hold to cover with administration at all. The concluding duty lies upon them and they have to be portion of determination devising. Committees merely fix what directors should analyse to function the intents of stakeholders.

Therefore the reply to the inquiry would be to name some experts to cover with the readying of studies so that directors would non be distracted from organisational scheme without at that place being ground but still do certain that the directors understood that the concluding determination and duty would lie in their custodies. To reason, efficient corporate administration certifies that there is transparence in the concern environment, which enables stakeholders to cognize who to fault for a possible loss or who to compliment on a possible success. Last, it is deserving adverting that although corporate administration appeared as a manner to command big corporations, in kernel it can be a utile tool for companies of any size and type, if their intent is efficient concern public presentation.

Appendix 1

SWOT ANALYSIS

Strength

Established company for many old ages

3 major clients ( Alphatrad, GE, CWGC )

Personal character

Loyal transcribers

Failing

No advertisement ( dated and dysfunctional web site )

Dramatic bead in figures ( lost all its car clients )

3 major clients ( Alphatrad, GE, CWGC )

No in-house translators= danger of losing clients as there is no exclusivity by our web of free-lance transcribers

No cooperation with pharmaceuticals

No contact with engineering ( loss of undertakings and working hours )

Opportunity

Expansion of web through appropriate selling

Membership to assorted interlingual rendition associations

Change of the company ‘s outlook ( dynamic enlargement, engineering, on-line citation )

Menace

Economic crisis

Major interlingual rendition groups

Technological promotions ( Trados, DejaVu )

Appendix 2

Risk Assessment Table

A/A

Hazard

Impact ( 1-10 )

Probability ( 1-5 )

1

No concern scheme

10

4

2

Competitive force per unit area

7

3

3

Dynamic entryway of Technology

8

3

4

Excessively slow to introduce

8

4

5

Turnaround clip of undertaking petitions

9

4

6

Market hazard

6

2

7

Foreign exchange rates

7

3

8

Misuse of fiscal resources

8

4

9

Traveling concern jobs

9

4

10

Decisions based on uncomplete or defective information

8

3

11

Undertaking hazards

9

4

12

Owner non familiar with new engineering

8

3

13

Company ‘s concern procedures are non aligned to customer/market demand

9

4

14

Owner lost his entrepreneurial spirit

10

5

15

Owner misses or ignores concern chances

10

5

16

Brand direction

6

2

17

Over trusting on his cardinal transcribers and clients

8

3

Mentions

Ansell, J. and Wharton, F. ( 1995 ) Hazard: Analysis, Assessment and Management. Wiley Publishers: England.

Bartlett, J. et Al. ( 2004 ) Undertaking Risk Analysis and Management Guide. 2nd edn. APM Publication: England.

Coyle, B. ( 2004 ) Risk Awareness and Corporate Governance. 2nd edn. Institute of Financial Services: United Kingdom.

Fiscal Reporting Council Available at: hypertext transfer protocol: //www.frc.org.uk/corporate/combinedcode.cfm

Accessed: 01.12.2009

SOUTH TEXAS COLLEGE ( 2008 ) Risk Management Process [ World Wide Web ] .Available from: hypertext transfer protocol: //finance.southtexascollege.edu/businessoffice/forms/roundup/AARoundup_03.26.08_Risk_Mgmt.pdf

[ Accessed:17/11/09 ]

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