Using the ERM Model to Solve Business Problems for A&F Corporation

Using the ERM model to solve business problems for A&F Corporation
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 Actions A&F management can take to bring risk exposure within risk appetite 
When A & F grows there are more risks are increase capacity allows the management to use the appropriate processes management depending on the risks faced.   In the case of company value under any scenario, the major threat from E-commerce competitor, shock -29.5% of baseline and the management ought to evaluate the competitiveness of the e-commerce competitor, but after mitigation it is now -14.0% As the conditions are baseline and adverse scenarios, further analyses is necessary to provide information on the changes to be made in the e-commerce section and competition with the international denim retailer. In the case of economic downturn risk scenario there is diversification of operations and, and improved marketing in foreign market to reduce risks in the international market. The probability of a company value impact of 25% or more of baseline in any scenario is no more than 5%. In the initial scenario without mitigation, this violated is the competitor risk scenario 1(major threat from E-commerce competitor, shock -29.5% of baseline but with 20% probability). This is indicating that the chance that the risk event will occur is 15% above the 5% likelihood of occurrence cutoff, but after mitigation the probability of a company value impact is now 14%.  To militate against the threat of e-commerce competition, the management ought to seek for more accurate information and derive value from this information. This strategy is most effective when there is creation of an effective digital strategy, which enhances customer engagement and experience.
The company value impact is a probability of at least 30% is no more than 10% of baseline.  befor3e mitigation scenario that violates statement 4, is competitor risk scenario 2, there are moderate threats from E-commerce competitor, with 40% probability but shock -14.0% of baseline, which is beyond ± 10 % over the baseline expectations, but after mitigation it is -7.1%. The manag...