How and why was risk survey employed at Cortal-plc?
First of all it should be stated that the risk survey was employed with the strict aim to evaluate the risk levels within the company and on the market of the painkillers. Originally, the risk survey incorporates several studies, and the central one is the estimation of the risks in accordance with SWOT matrix, and often resorts to the PESTO matrix. Consequently, there is strong necessity to take into account not only external factors. The fact is that, internal threats and weaknesses could essentially impact the overall performance of the company, thus, the survey, which was employed, included also estimation of the internal situation, such as the responsibility of the employees, the strict observation of technologies and the qualification of the management team.
What is QCR 3000 TM?
QCR (quality, compliance, risk), is generally regarded as the system, joining the governance, change, audit, business improvement, re-engineering, continuity & information lifecycle management. The fact is that this strategy is widely applied in the Cortal plc Company, and in lots of other multinational companies. Originally, it presupposes not only the principles of managing the corporation, but also the tips and rules for modifying the most essential business spheres of the company, especially those, which require modification in any particular company.
As for the standard 3000, it signifies the required level of standardization of the business processes management. Thus, it is similar to ISO indexes, with the only distinction that QCR 3000 is not only the system of standards, but also the strategy for achieving these standards and the recommendations for maintaining the sufficient level of product quality.
What is Risk ERP such as SAS?
The fact is that SAS enables any company to achieve more use from the implementation of the ERP system by enhancing the environment that is claimed to integrate the business intelligence principles with the required analysis. This analysis is aimed to make the fact-based decisions and solutions. It is claimed that the decision makers generally gain the access to historical data, thus, reaching the indicators of the further direction of the company management strategy, providing an opportunity for the quick reaction after the changes of the market conditions. This principle also helps in the issues of opportunities anticipation, using the experience of the customers, and the knowledge of products and possible risks.
This issue is generally approached by analyzing the systems to identify information needs and gaps in the business intelligence environment. Leveraging current investments to establish an integrated platform built on reliable data.
Difference between ERP and QCR 3000 TM
The main difference between these two approaches is that QCR provides solutions that enable the management team to access the information in the corporate system to make better decisions faster. The integrated intelligence, based on the principles of ERP, incorporates the embedded data quality, and generally ensures the credibility of reports and analyses. By applying the principles of the acquired intelligence to the business management processes in real time, ERP makes it easy to bring operational systems up to date and realize benefits immediately. Thus, the difference between EPR and QCR 3000 is mainly in the principles of application these two systems.
The Main Problems of Cortal-plc
One of the central problems, which is experienced by the management team of the Cortal plc corporation is the absence of the joint and solid strategy for further development. On the one hand the company wishes to incorporate all the positive features of QCR 3000 and ERP, however, these two systems are incompatible, especially in the issues of risk management.
Another problem which is clearly observed is external. It is the incapability to enter the European market of the painkillers, and, it is claimed that the main reason of this incapability is absolute unreadiness to be subjected to changes, required for the successful acting on the market of pharmaceuticals. Moreover, the level of the European standards slightly differs from the standards which are applied in the production by the Cortal plc. Thus, the problem is in the principles and strategies of management.
Finally, it should be stated that there is strong necessity to increase the volumes of production. On the one hand it will cause the increased revenues; on the other hand it generally requires more professional production management.
Solution of the Problems
First of all it is necessary to change the managing team (as this one is not adaptable for the changes), and restructure the whole management strategy. Thus, the hidden resources will be released, and the new capacities of the company will be used for expanding the production, applying new standards and entering the new markets.
The following step is the refuse from ERP system, and complete application of QRC 3000, as it is closer to ISO than ERP. From this point of view it should be stated that the principles of the management strategy will be changed automatically, as the new principles would require totally innovative regulation.
Understanding of Sarbanes-Oxley Act and IFRS
Sarbanes-Oxley Act is the legislation set of the enhanced standards for the public company boards, management and public accounting companies. It is not related to the private companies as the private sector is regulated separately, and according to other principles.
This act is aimed to create a new, quasi-public agency, the Public Company Accounting Oversight Board, modified for the aims of overseeing, regulating, and structuring companies in their roles as auditors of public companies. The act is also aimed to cover the issues such as auditor independence, corporate governance, internal control assessment, and enhanced financial disclosure. (Banham, 2004)
IFRS is the setting of standards, regulations and the frames adopted by the International Accounting Standards Board. For better understanding of this setting it is necessary to cite one of the researchers of these acts Hoetmer (2004). He emphasizes the fact the In the absence of a Standard or an Interpretation that specifically applies to a transaction, management is aimed to use the judgment in enhancing and applying an accounting policy that causes the appearing of information that is reliable enough for further modification of the management strategy. In making that judgment, IFRS requires management to consider the definitions and measurement concepts for assets, liabilities and expenses in the Framework.
References
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Barrese, James, and Nicos Scordis. “Corporate Risk Management.” Review of Business 24.3 (2003): 26.
Cotten, Doyice J. “Risk Management – a Tool for Reducing Exposure to Legal Liability.” JOPERD–The Journal of Physical Education, Recreation & Dance 64.2 (2005): 58.
Culp, Christopher L. The Risk Management Process: Business Strategy and Tactics. New York: Wiley, 2005.
Fairbanks, Stewart, David A. Vance, and James J. Chrisman. “NAPECOR’s Risk Management Venture.” Entrepreneurship: Theory and Practice 30.1 (2006): 97.
Hoetmer, Gerard J. “Risk Management Concerns Are Employee-Centered.” Public Management. 2004: 14.
Hood, Christopher, and David K. C. Jones. Accident and Design: Contemporary Debates in Risk Management. London: UCL Press, 2002.
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