Strategic Risk Management at the LEGO Group

Read Chapter 6, Strategic Risk Management at the LEGO Group, starting on page 93 (WHICH I HAVE ATTACHED). Review the corporate culture and solutions and history of LEGO Group again. Then answer the questions below and submit your answered document to this dropbox.

1. What are the advantages of integrating ERM with strategy and strategy execution as described in this case?
2. How does scenario analysis as described in this case help an organization to prepare for uncertainties?
3. What are the advantages of using the PAPA model to categorize risks?
4. How would you describe the “Strategic Risk Management Return on Investment” at LEGO?

Answer preview…………………

Strategic Management at LEGO Group

What are the advantages of integrating ERM with strategy and strategy execution as described in this case?

LEGO’s strategic risk management illustrate that firms that integrate ERM and strategy execution stand to accrue several benefits. This approach allows firms to find an ideal balance between risks and opportunities. This is because the integration allows management teams to assess the upside and downside of their undertakings, such as investments, and subsequently, knowing the ideal decision. The viewpoint implies that integrating ERM into strategic operations allows business enterprises to know the dangers and returns of any venture that they undertake………….

APA 732 words