Edward’s EcoCraft (Marks: 100)

Edward’s EcoCraft is a small business located in George, South Africa. They specialise in bespoke, handcrafted, sustainable furniture made from locally sourced materials. Edward’s EcoCraft has built a reputation for quality and environmental responsibility.

The owner, Edward, employs a team of five skilled artisans. He is considering expansion opportunities and diversifying the product line.

Edward’s EcoCraft has received attention for its unique and environmentally friendly designs, prompting inquiries from larger retailers and international distributors. The owner is now contemplating scaling up production and entering into partnerships to expand his reach without compromising their commitment to sustainability.
The report should follow the following format:

1. Introduction (5 marks)

2. Enterprise Risk Management (35 marks)

2.1 Fundamental concepts (15)

2.2 Technology and Intangible assets as key drivers to changes that require an integrated approach to the management of risks (20)
3. Risk (25 marks)

3.1 Elements of risk (10)

3.2 Risks identified

3.2.1 Competitor risk (5)

3.2.2 Supplier risk (5)

3.2.3 Economic risk (5)

4. Corporate Governance (10 marks)

4.1 Example of poor corporate governance in the South African manufacturing industry(10)

5. Risk Control (15 marks)

5.1 Mitigation of economic risk (5)

5.2 Criteria to apply when considering a proposal aimed at reducing risk (10)

6. Conclusion (5 marks)

Please note that five (5) marks will be allocated to the visual presentation of the report, writing style, grammar, and language

Answers to Above Questions on Enterprise Risk Management

Answer 1: Introduction: Risk management is highly essential in every type of business. With every major business activity, it poses a certain type of risk to the business. In the given case scenario of Edward Ecocraft, the decision of the company to expand its product line will definitely have significant risks to the business in performing such expansion. Proper management of risk is therefore crucial from the point of view of achieving success in the business decision of performing expansion.