Riordan Enterprise Risk Management Plan

Riordan Manufacturing is a Fortune 1000 comp all that specializes in the fictile injection molding industry. They are an global company with facilities in California, Georgia, Michigan, and China. Their products embroil beverage containers, plastic fan parts, and custom plastic parts. Riordan prides themselves on their industry leading research and resurrectment (University of Phoenix, 2009). The pastime enterprisingness Risk Management (ERM) pattern was developed for Riordan Industries, Inc. and its subsidiaries.The destruction of this plan is to help mitigate any sound liability on the part of Riordan by enforceing the delegation of Sponsoring Organizations of the Tread centering Commission (COSO) good example (Jennings, 2006). Alternative Dispute occlusion Alternative Dispute Resolution is a panache of resolving differences outside of the courtroom. This includes anything from informal negotiations, to formal create verbally arbitration (Jennings, 2006). Currently, R iordan keeps an attorney on retainer entirely does non buzz off a trash issue in movement, thus if a conflict were to escalate, they would non fuck off a resolution plan in process.It is in Riordans best interest to have a mediation process in locating to help settle disputes. The reasoning is mediation is cheaper than another(prenominal) dispute resolution methods, especially litigation, and it nurtures the confidentiality of the parties involved (Peters and Mastin, 2007). Riordans internal legal council will work without delay with the law firm on retainer to develop a mediation process with varying levels of triggers found on levels of risk. In doing so, Riordan should set up a process for which their internal legal department butt joint overcompensate the brunt of the load to further wince costs. go-ahead indebtedness Enterprise Liability suggests that those who profit from a risk should also bear the cost of accidents that jump from that risk (Keating, 2001). With manufacturing plants in several views, including internationally, there is hearty risk of an accident, of which Riordan would be liable for. Riordan exits employees with basic tuition and an employee manual of arms outlining relevant laws (University of Phoenix, 2009). However, there currently is not a monitoring dust or a proactive detection system in lieu to detect any transgressions.In the employee manual, Riordan outlines a tight discipline system. However, when looking through employee records, there is no record of any discipline associated with employees who violated the attention form _or_ system of government (University of Phoenix, 2009). This leads to speculation that Riordan does not follow any of their discipline policies. If these records were obtained in a legal dispute it would leave Riordan extremely vulnerable. Employee records should be centralized and program lineled field of operation where they can be properly assigned. Product LiabilityProduct Liability is delimit as, Legal province of the manufacturers, wholesellers, retailers to the buyers or make use ofrs of the damages or injuries caused by the use of defective products (Legal-Explainations. com, n. d. ). With several manufacturing attitudes, Riordan focuses on t oneness and the excreting of defects in its manufacturing process by applying ISO 9000, and the Six Sigma standards for production, shipping, and spirit control (University of Phoenix, 2009). However, they have no company-wide standards in emplacement for dealing with property control.For example, the Pontiac site has internal memos discussing quality control issues, yet no one took duty to take action. Riordan will assume a prodigious totality of risk if it is discovered that they were aware of the quality control issues, yet took no action. Riordan should immediately implement a whistle-blower policy to encourage employees to wrap up any compliance or quality control issues. In addition, Riord an should set up a police squad of individuals to work with an independent third party to handle these reports. International natural lawRiordans China location is a joint venture with their Chinese partners discourse everything from labor, capital, regulations, and hazardous waste cleanup. The officers and directors of Riordan have no really authority over their Chinese partners, nor do they have any legal counsel there for foul (University of Phoenix, 2009). Riordan should extend their internal legal department to include staff with expertise in Chinese regulative compliance. Tangible Property Tangible Property is defined as the type of property we can natter and touch (Jennings, 2006). At separately of Riordans locations, they maintain a variety of angible property, such as ecumenical office equipment, transportation equipment, and information technology equipment. Riordan must(prenominal) develop a better system to itinerary the purchase, and use of this equipment, in cluding commission of leases, maintenance, and general accounting guidelines. Riordan also maintains a supply of raw materials at each location. However, there is not currently a process in place of investigating any lose material (University of Phoenix, 2009). It is recommended that Riordan develop a process for documenting the broad inventory process from delivery to use in order to assist any investigation into missing materials.In addition, Riordan take to develop a practically more robust security and emergency plan to protect these assets from theft or other damages. happy Property Intellectual Property or impalpable property is defined as bundles of rights with respect to goodwill, business names, copyrights, patents, trade dress, trade secrets (Jennings, 2006). Riordan maintains various trademarks, patents, copyrights, software, and trade secrets. The security system of these assets is imperative to their future.Riordan needs to develop a system to identify their e xisting intellectual property and how to protect that property, such as restricted areas to store data, encryption, and handle background checks on employees especially those with access to keen materials, and the use of non-disclosure agreements. In additions, copyrights, patents and trademarks must be registered and keep (Jennings, 2006). Legal Forms of personal line of credit Riordan is a corporation with, outright duration, free transferability of interest, limited liability for shareholders/owners, continuity, and centralized management, (Jennings, 2006).This eliminates ad hominem liability from officers, directors, and shareholders with the exception of negligence (Jennings, 2006). However, they are expect to act in the best interest of the company. This includes following all applicable tax laws and regulations. Riordan must utter the varying pay and accounting systems that each location currently uses. The existing process is slow and because of the manual data entr y increases the chance of error. Riordan should implement one accounting system for the entire company to use. term expensive upfront, this system will cut deal on the amount of manual work that is postulate and over time will significantly reduce cost. In addition, Riordan is a publicly traded company, which means it must comply with the Sarbanes-Oxley Act (SOX) of 2002 (Jennings, 2006). With Riordans current finance and accounting systems, this would be extremely difficult. Governance collective governance is defined as a way in which a company protects itself with a framework of rules and practices by which the Board of Directors ensure accountability, fairness, and transparency (BusinessDictionary. com, n. d. ).Riordan needs to elect a Board of Directors to oversee the management of the company in addition they will provide guidance for the senior management and any outdoor(a) auditors. As Riordan implements the ERM framework, the board should be consulted to make updates fo r the amount of risk they want to assume and adjust policy as they see fit. ? References BusinessDictionary. com. (n. d. ). BusinessDictionary. com. Retrieved from http//www. businessdictionary. com/definition/corporate-governance. html Jennings, M. M. (n. d. ). Business Its Legal, Ethical, and Global Environment (7th ed. ). Keating, G. C. (2001).The Theory of Enterprise Liability. Vanderbuilt Law Review. Retrieved from http//law. vanderbilt. edu/publications/vanderbilt-law-review/archive/volume-54-number-3-april-2001/download. aspx? id=2846 Legal-Explainations. com. (n. d. ). Legal-Explainations. com. Retrieved from http//www. legal-explanations. com/definitions/product-liability. htm Peters, R. J. , and Mastin, D. B. (2007, May July). To mediate or not to mediate That is the question. Dispute Resolution Journal, 62(2), 14-21. University of Phoenix. (2004). Riordan Manufacturing Computer Software. Retrieved from University of Phoenix, Simulation, Law 531 website.