Task 4

[John Bashunov]

[Christie Ritten]

See the model solution for the Module 4 Exercise (McNulty Getaways), task 1. I am going to follow that format for the RCD. (When I completed this exercise, my RCD didn't have this much detail, and I failed. Not sure if that was the reason, but I'm playing it safe this time!)

Also, risk mitigation was part of Module 4 Exercise task 3.

On Thursday, July 25, 2013 9:28:15 PM UTC-5, John Bashunov wrote:

[Christie Ritten]

The other place I'm going to start is Segal, Corporate Value of Enterprise Risk Management, pages 115-118.

[John Bashunov]

Thanks you for this. This would have completely slipped under the radar for me.

[John Bashunov]

Anyone wanna share their list?

[Allan Costa]

How many risk do you think are expected?

[Allan Costa]

And what the heck are people putting in their memo's?  Doesn't the RCD Tool speak for itself?

[John Bashunov]

I just put some 2 sentence intro, then RCD, then talked about key risks an mitigation strategies...very simple

[Christie Ritten]

15 risks were expected in the Module 4 exercise (McNulty Getaways), so I think that's a good guideline. For "extra credit" (a girl can dream!) I also listed key people to interview about the risks, like we were required to do in that exercise.

I laid out my memo similar to how John did, I think. After the RCD and list of people, I have a section for each key risk. In each section, a few sentences to explain/justify, then a few bullets of mitigation strategies.

[John Bashunov]

Christie,

Make sure you don't include the people that are coming to the meeting in this case ( that was only for McNulty Getaways)

John

[Christie Ritten]

John, what meeting?

[John Bashunov]

"I laid out my memo similar to how John did, I think. After the RCD and list of people"

We are not making a list of people in this case ;)

[Christie Ritten]

Right, there is no meeting in this BBA case. I know we weren't asked to do a list of people, but I'm doing it anyway. I just thought it would be a nice touch, and it's not hard to compile. Nothing wrong with not doing it, though.

[Salman Shah]

Can anyone share the format for RCD tool?

[Christie Ritten]

Salman, see my first post in this topic. That's what I used.

[Christie Ritten]

Oh, sorry Salman, I didn't realize you had a different exercise for Module 4. I'm replying to everyone, in case anyone else is in the same boat.

Here are the column headings:

Risk Category

Risk Subcategory

Risk Division

Risk

Definition

Same format as on Segal p 115. And here's the first one, as an example:

Financial

Market

External markets

Unexpected economic improvements

Recovery from the recent economic downturn occurs more quickly than expected

Btw, in the model solution, "Risk Division" was left blank for all the Strategic risks. I followed that too, in my RCD.

[Salman Shah]

Thank you.
Cant even find that book.

[Christie Ritten]

I took a picture of Segal p 115 and emailed it to Salman. I tried to attach it here but it didn't work. If you also need it, email one of us.

[Salman Shah]

Thank you very much, Christie.

[Salman Shah]

Just one last thing. Im making RCD for this venture only and not of the whole BBA.  Im sure everyone did it like that.  There was a discussion on other group for making it for the whole Company.

[daki...@gmail.com]

I agree with making the tool for this venture alone.  However, I think there are risks that can occur within the whole BBA that have a direct impact on the venture with CDL.  For example, some operational risks might impact members to redeem less miles.

[ancl...@gmail.com]

Were you able to find 15 risks that were only linked to the agreement? I have risks that are linked to the agreement but the majority would also be applicable to BBA in case the agreement does not happen...

[Christie Ritten]

I have 20 risks, and only 9 of them have to do with the frequent flyer program. Most of these 9, but not all, have to with the CDL deal specifically.

[John Bashunov]

I tried to link all of mine to the deal, but a lot of risks will overlap to the practice as a whole. That being said, I only have 16 risks (4 Financial, 6 Operational, 6 Strategic)