Risk Management At General Motors - 766 Words

Risk management at General Motors in the past dealt with primarily disasters related to production stoppages, supplier issues and bankruptcies as well as currency fluctuations and manipulation around the world. General Motors identified and mitigated these and other risks through an organizations process called ‘active risk management’. GM Risk management, which refers to the process of evaluating the risks, classifying and organizing, and reducing risks is shown in the below risk evaluation chart. Risk evaluation, classification, and management was utilized for large and small projects alike and organizational decisions at General Motors. With respect to the ignition switch recall, the risks were not captured and distributed properly to the affected departments in this real world project change of the ignition switch. Engineering, validation and purchasing worked in silos, allowing a substandard product to enter the parts and production supply. The inputs used in thi s project were generic in nature following a standard set of risk management development for product liability and manufacturability. As a result of the recall and Federal investigations, General Motors has implemented a new risk management strategy. The risk reward benefits are achieved in the new approach by identifying the risks, assessing and prioritizing, assigning accountability, developing a plan, monitoring and validating the risks and utilizing lessons learned and providing feedback for others toShow MoreRelatedEssay about General Motors Risk Management Policy975 Words   |  4 Pagesstated objective of General Motors Risk Management policy? 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