Risk Management Events in Reflection of the

Risk Management Events In reflection of the Exxon Valdez spill, the National Transportation Safety Board and the Coast Guard would both take a direct interest in improvement regulatory considerations relating to the alertness and suitability of an oil tanker's crew. This would be in 1989 following the massive oil spill off the coast of Alaska. According to the text, "Since 1989, much effort has been made by the Coast Guard and by companies like Exxon to ensure better business process and better risk management.

Both the public and private sectors added new procedures and new controls in the transporting of oil around Alaska, reducing the likelihood of a repeat incident in that region." (p. 20) 2. American's Express's Authorizer's Assistant would be implemented in the 1980s to create an automated way of fielding purchase authorization requests with a credit card. This would help to reduce the necessary labor to provide personal authorization approval while preventing the fraud risks associated with expanding credit card use. 3.

The research describes the Barings Bank as the oldest merchant bank in London before its 1995 collapse. The collapse would signal the vulnerability even of large-scale financial firms to trading irregularities, illuminating the need for more effective oversight of executive trading behaviors. 4. Ironically, one risk management tool that was conceived as an IT driven enterprise planning instrument was Arthur Andersen's Universal Process Classification Scheme, forged in 1998. This is ironic because this monitoring tool was in place when Enron collapsed due to massive fraud, suggesting the ineffectiveness of this risk management instrument. 5.

Another more effective instrument would be the Process Handbook created by MIT in 1991 and commissioned in 1996. This is designed to help companies manage the Supply Chain using data-driven safeguards less susceptible to human error. 6. In 1982, the pharmaceutical industry was thrown into chaos when Johnson & Johnson's Tylenol was the victim of tampering, with seven people dying of cyanide poisoning from ingesting the medicine. The result would be a streamlining of tamper resistant packages throughout the industry as a way of reducing product safety risks. 7.

The fatal plane crash of Comair Flight 5191 in 2006 would produce an Aircraft Accident Report that would detail the conditions of the facility, the events leading up to the event and the behaviors of personnel during the event. Such reports are designed to produce an explanation for tragic events such as this so as to prevent repeat incidences. 8.In 2007, the TJX clothing and retail company learned the hard way that it is necessary in the age of online retail to encrypt customer data.

When 45,000 customer credit cards were stolen from its database, the firm found that it has not sufficiently managed the risk created by its web retail operation.