Hurricane Strategic Planning

Strategic planning marks the starting point for managing all risks in ERM and those that affect business entities. Strategy formulation and ERM are seen as complementary activities although they are taken as being separate by majority of individuals. The strategies that are chosen to tackle the hurricane need to be relevant or else they will be doomed to fail and it will also be important to assess and manage the risk (Rudberg, 2008). ERM implementation process needs to be tied to organizational goals and the process need to begin with identifying all the risks that are tied to the company strategy.

It is important to properly manage the hurricane risk due to its strategic nature and the process makes it possible to increase the value of the stakeholders. A consultancy firm referred to as Mercer Management Consulting was in a position to find out that 35 percent of the stakeholder value was lost by the Fortune 1000 among 10 percent of the companies within a one-month period (El Khatib, 2015). Mercer was also in a position to find out the core reasons for the losses in stakeholder value where he was in a position to note that 58% of the reasons were attributed to strategic risks where hurricane falls. Operational risks attributed for 31 percent, 6% by financial risks.

In the case of the hurricane, it will be important to identify all the factors that will ultimately hinder the mitigation of the hurricane risk within an organization (Altman & Cooper, 2004). Each strategic opportunity to an organization has various risks embedded in it which can be plotted on a risk map. Alternatives that are available to an organization can be analyzed in terms of capital and skills among people. Risk alignment with the company appetite can also be