A leading enterprise is inherently connected to its capacity to deal with successful risk management within an unsettled and challenging business environment. Risk analysis is a crucial planning tool that can help to save “time, money, and companies’ reputations.” According to Tranchard, some of the potential increasing risks for the private and public organizations include the “damaged reputation of the brand, cybercrime, political risk, and terrorism.” The revised standards of ISO 31000 are based on the integration with the company and emphasize leaders’ role and their key responsibility. Such an emphasis entails that risk management is a pivotal part of the business. Concerning Walmart Inc. company’s business strategy, the risk management team at Walmart is particularly focused on technology to achieve improved productivity.
I do not consider Walmart Inc. a risk-taking company since its long-established proven model made the enterprise focus solely on execution. Therefore, Walmart became risk-averse without intention. The Walmart corporation adheres to the ERM (enterprise risk management), which consists of five main steps, which are described by EDUCBA. The ERM processes involve risk identification, risk mitigation, action planning, analyzing the impact on the identified risk, and evaluating the risk. In 2015, Walmart developed the program to concentrate on domains that pose the highest potential risks to social, safety, and environmental compliance. The company assesses risk by adopting a data-driven approach, including the factors of country governance, to evaluate how they impact the risk of non-compliance in facilities produced in that country. To conclude, Walmart’s risk management strategy helps the company determine and focus on the few most critical risks to address rather than classifying risks it is not informed about.