A Risk Assessment of FedEx Corporation
Many organizations perform risk assessments to measure the amount of risks that could impact their organization, and identify ways in treating them before a major disaster occurs. Risks involve theoretical effectiveness of security measures, loss of impact, threats and vulnerabilities that are common in today's society. FedEx Corporation follows guidelines and policies that are governed by processes by which the company assesses and manages its exposure to risk. The company's major financial risk exposures and the steps management has taken to monitor and control such exposures (FedEx Corporation, 2005).
Almost every company in business is face with some risk or potential threat that could cause a huge blow to their organization operations. These risks and threats usually comes from within or outside and organization. In order to prepare for the worst that could happen, organizations must focus their attention on how to assess different types of risk so they could protect themselves from the harm caused by them. Risks involve theoretical effectiveness of security measures, loss of impact, threats and vulnerabilities that are common in today's society.
FedEx Corporation is a 29 billion dollar company that offers a variety of supply chain, transportation, business and related information services (FedEx Corporation, 2006). Today FedEx consists of a network of different companies providing services to many countries around the world. FedEx Corporation is the premier provider of shipping and information services worldwide, and its companies function under the motto of "operate independently, compete collectively and manage collaboratively" (FedEx Corporation, 2006).
FedEx is committed to protecting its reputation and organization by implementing strategies that would reduce risk and potential impacts that are related to disasters and other major threats and risks. The company established an effective recovery capability to help reinitiate critical, core business processes following a significant, unplanned interruption of normal processing (FedEx Infosec, 2006). These strategies were implemented to help guard against unacceptable, adverse financial and operational impacts caused by unidentified risk and threats. The disaster recovery plan includes information that is critical to the business operation of the company. It outlines ways to make better decisions after a disaster, and promotes potential opportunities to reduce the risk of existing business processes.
With many major facilities and stations around the world, FedEx is vulnerable to all kinds of risks. The company has hundreds of cargo and commercial airlines that are potential targets for bomb threats or terrorism. Many of the company's critical facilities are located near water, and if a natural disaster like a hurricane strike, it could cause severe damage to the operations. Other potential impacts and...