Walmart has designed its enterprise wide risk identification and response program for prevention and management

of risk for natural disasters such as hurricanes. The state of crisis has an effect on primarily cash and merchandising needs of the community impacted. The company keeps its cash reserves in place as it is essential, for there may be more requests from customers for cash back at the registers in case of a an uncertain environment during a disaster. Another need arises from the perspective of payroll of associates aspect to this was the need to have ample cash available to take care of associates from a payroll perspective. While the company has to attend to these risks, they dont allow too much cash to be accumulated in one location so that they can minimize that risk as well. In all, the company maintains the appropriate balance between the two aspects. Additionally, Walmart has its preparation for an unforeseen impact to banks. They have a contingency plan for such scenarios. The action plan is as follows: 1. Divide all the hurricane prone areas into different zones 2. As the regions are set up, information is shared with companys armored carriers and the banking partners to address needs related to both pre-and post-storm. 3. Based on feedback received, at any point in time, from any of the companys internal center, or any state emergency agency, the company activates a zone or multiple zones based on the signal received. 4. Finally, appropriate preparations for the expected response are started. Cost benefit Analysis of Risk management:

The costs can be direct i.e. in the form of loss of asset, loss of habitat or loss on account of population affected. Or it can be indirect i.e. disruption in business or adverse impact on reputation or hazard to environment. The benefits generated are usually by costs saved during an event which can have uncertain consequences.

The cost benefit analysis for risk management entails the following steps.

Identification of risks

Define scope of analysis

Identify appropriate risk management project

Determine costs for the project options

Costs

Determine damages with and without any mitigation options

Benefits

Calculate economic viability of options

Benefits - Costs

Choose most profitable option or eject all options

Implement project

Evaluate project after completion