Target Risk Management Case Study

The risk management process establishes the methodology for risk enterprises framework for the of many businesses (Fraser & Simkins, 2010). A retail business such as Target needs to do a risk assessment to establish the types of risks being faced by the organization. The risk assessment process starts with the identification and categorization of risk factors. High customer interaction of the retail businesses like Target, need to identify risk as a continuous basis effort over the lifetime of the business (Mandru, 2016). It important that the business leaders, set goals and priorities for the risk management system. The goals created for the organization have to be aligned with the strategic goals and overall mission of the entire organization.

Historical data about on the job injuries will assist managers the training new employees how to avoid those risky behaviors while working. Historical data related to the incidents that lead up to an employee being injured on the job will establish the foundation for safety training for existing employees. Effective risk management policies regarding employee safety usually come from past incidents that the company would not to prevent in the future. The culture of Target should be a risk management culture based on prevention and identification of potential new risks by staff. Target is a customer centered organization that focuses less on price and more on the overall customer experience. In order for Target to keep customer satisfaction high, they need to keep the number customer being injured or harmed inside the store to a minimum. They also need to make sure the products it sells inside their stores do not harm customers. This risk management work will lay the foundation for the risk evaluation of new products being sold inside the store. Target will also create a process to respond to alerts from manufacturers that there is a potential risk to customer

A new competitor is a risk occurrence that is completely out of the control of the business. Consumers have different tastes. A new competitor may be able to tap into some of Target’s core customer based with some differentiation. Target will need to have be to tap into and respond to those customer needs by altering its products and services to match those of its competitor. If Target has effective risk management system to track external risk like changes in customer needs or wants, the retailer will be ready if another competitor tries to enter the marker to meet those needs. Another external risk is a lost of a supply chain which is result in late or missed deliveries of inventory. A manufacturer of a product may discontinue making a popular item or cease business operations all together. Target can monitor external market conditions of its manufacturers however they cannot control their cash flows or business operations. Target should analyze and identify the potential consequences to potential risk situations (Popescu, Gherghinescu, & Ionete,