Enterprise Risk Management

Enterprise Risk Management

Chapters 30, 31, and 34 presented three mini-case studies on ERM and risk. Each one presented a slightly different risk scenario. Suppose General Motors wants to replace one of their traditional lines of vehicles with all electric models. How could GM use game theory to identify and assess the major risks to this decision? Identify two major risks that would result from GM converting an existing line to an all-electric line. Provide a brief discussion of each risk, and your assessment of the levels of inherent, current, and residual risk, using GM’s five point scale.

To complete this assignment, you must do the following: Suppose General Motors wants to replace one of their traditional lines of vehicles with all electric models. How could GM use game theory to identify and assess the major risks to this decision? Identify two major risks that would result from GM converting an existing line to an all-electric line. Provide a brief discussion of each risk, and your assessment of the levels of inherent, current, and residual risk, using GM’s five point scale.

300 -350 words APA format

20190619232251chapter_30_31__34

Solution Preview

Enterprise Risk Management

In the event that GM’s actions are likely to impact the actions of others, a kind of game theory can facilitate the way of avoiding any misunderstandings. Utilizing the game theory, the management can place themselves in the situation of every player and inquire whether they are comfortable with each option or choice

(355 words)