• Background Information

o Their Mission
o Core Values

ROADM
o Goals &Key Performance Indicators
o SWOT Analysis 

• Mind Map

AP •

•
Risk Matrix

Top Risk #1 – Environmental Regulation Risk

o Identification & Analysis 
o Treatment & Implementation Plan

• Top Risk #2 – Ability to Launch New Products Risk

o Identification& Analysis 
o Treatment & Implementation Plan

• Top Risk #3 - Foreign Exchange Currency Risk

o Identification & Analysis 
o Treatment & Implementation Plan

• Top Risk #4 – Legal Liability Risk

o Identification & Analysis 
o Treatment & Implementation Plan

• Conclusion
 BACKGROUND 
MULTINATIONAL AMERICAN AUTOMAKER
FOUR MAJOR BRANDS (CHEVROLET, BUICK,
GMC, CADILLAC) 
SINGLE LARGEST MARKET IS THE US (46% OF
SALES)
EXPANSION INTO CHINA WITH BRANDS JIEFANG,
FAW, AND WULING. 
DEALER OF FINANCIAL PRODUCTS (AUTO
LOANS AND LEASES)
COST LEADERSHIP
THEIR MISSION
“Earn customers for life by building brands that inspire
passion and loyalty through not only breakthrough
technologies, but also by serving and improving the
communities in which we live and work, around the
world”
 Internal Enviroment External Enviroment

S
Strengths
W
Weaknesses
O
Opportunities 
T
Threats
 
• Strong market share   •Over dependence on •Growth in the electric •Global recission
Truck and SUV sales and eco-friendly sector
• Highly innovative   •Rising USD
•Lack of diversification •Demand for autonomous
• Strong strategic vehicles •Government Regulations
partnerships   •Reliance on US market
•Low fuel prices •Slowdown in US
• Wide brand portfolio •Quality issues  Automotive sales
  
• Sustainability focus   •Intense competition

•Labor disputes  
 Responsibility 
GM'S
CORE
VALUES  Innovation 

"A FUTURE OF
ZERO CRASHES, Continuous Improvement 
ZERO EMISSIONS,
AND
ZERO CONGESTI
ON" Teamwork
 Role model for environmental responasablity and integrity
• Meet water, energy and waste intensity reduction targets
• Carbon neutral by 2040 in its global products and
operations
GOALS &
KEY Leader in innovative products and technology 
• Produce 30 EV's by 2025
PERFORMAN • Develop a fully autonomous vehicle 

CE Earning customers for life

INDICATORS • Customer retention 
• Customer satisfaction 
• Reducing vehicle defects 

Competitive Profitability 
• EBIT adjusted margins of 10% or greater 
• Consistent international profitability 
 TOP 8 RISKS TO GM
Strategic Financial
1. Environmental Regulation Risk 5. Price (Commodity) Risk
2. Ability to Launch New Products 6. Foreign Currency Exchange Rate
Risk Risk
Operational Hazard
3. Disruption to Supplier Risk 7. Legal Liability Risk
4. Information Technology Breach 8. Damage to Assets (Business
Risk Interruption) 
RISK MATRIX 
Underlying Risk Strategic Objective

Strategic risk of the

government changing Role model for
regulations in environmental integrity
production
 IDENTIFICATION &
ANALYSIS
Risk Severity Likelihood Risk Ability to
Category  Clock Mitigate
Speed
Environmental
Regulatory
Risk 
 Sub-Drivers
Drivers New government put
into power
Government in a
country of production

ENVIRONMENTAL
sets new regulations for
Underlying Risk production emmisions Pressure on
government to cutdown
Environmental on pollution

REGULATORY regulations change or

are failed to comply
with
Pressure to meet certain

RISK
targets
Corners are cut in
production to save cost

Human error
 TREATMENT &
IMPLEMENTATION PLAN 
Reduce the Severity and Likelihood Retain
• Ensure production can be upgraded to comply with
regulatory changes
• Build a contingency plan and capital
reserve to quickly upgrade the
• Maintain a strong awareness of potential changes
production process if need be
in policy
• Avoid just barely passing regulations • Ready a damage control team in
•
the case of a breach
Ensure no corners are cut in terms of sacrificing
environmental integrity
• Frequent quality checks
• Assemble a government relations team
ABILITY Sub-Drivers

TO
Drivers
Interruptions in the
Underlying Risk development of new
technologies that delay the

LAUNCH
Ability to timely fund and
introduce new and improved
vehicle models that can
attract a sufficient number of
consumers
implementation in new
Competitors introducing their vehicles. 
new vehicles with similar
technological advances before
General Motors does. Ex
Autonomous Vehicle Tech.
Patents that

NEW
restrict General Motors ability
to adopt new technologies 

MODELS 
TREATMENT &
IMPLEMENTATION PLAN 

Increase the Frequency  Loss Prevention

• Of new vehicles that incorporate • Not allowing current fleet of cars to
latest technology i.e., Autonomous age too drastically before upgrading
driving 
• Identify new trends earlier to allow
• Mid-cycle refresh's that also premature development of new
incorporate new technology  technologies
• R&D department
continuously monitors changes in
consumer preferences
Underlying Risk Strategic Objective

Ability to timely fund and

introduce new and improved Innovation and Continuous
vehicle models that can attract a improvements 
sufficient number of consumers
 IDENTIFICATION &
ANALYSIS
Risk Severity Likelihood Risk Clock Ability to
Category  Speed Mitigate

Ability to
Launch New
Models 
 Underlying Risk Strategic Objective

Foreign currency exchange

rate risk resulting from Growth into new markets
fluctuations in foreign and continuous innovation
currency
 IDENTIFICATION &
ANALYSIS
Risk Severity Likelihood Risk Clock Ability to
Category  Speed Mitigate

Exchange
Rate Risk
FOREIGN
CURRENC
Sub-Drivers

Drivers Lack of expertise

in foreign markets

Y Underlying Risk
Imperfect Hedging
Improperly trained

EXCHAN
Foreign Currency financial advisors
Exchange Rate
Risk
Central banks
Economic Growth

GE RATE 
interest rate values
& Economic
(Interest Rate
Downfall
Risk)

RISK
 TREATMENT &
IMPLEMENTATION PLAN 

Reduce the Severity  Retain

• Hedging Oversea Assets • Build a Reserve and make the
o Hedged Exchange-Traded Funds proper provisions to retain
o Currency Forwards losses 
• Implement a team of
expert financial advisors  
o Reduces imperfect hedging
 Underlying Risk Strategic Objective

Legal Liability risk resulting

Achieve a high rate of
from new product
innovation in new product
developments in Autonomous
development
Vehicles
 IDENTIFICATION &
ANALYSIS
Risk Severity Likelihood Risk Ability to
Category  Clock Mitigate
Speed

Legal
Liability 
 Sub-Drivers
Lack of testing,
funding, and talent
Drivers

LEGAL Underlying Risk

Malfunction in
Technology
(Coding Error)
Improperly trained
employees

LIABILITY
Legal Liability Risk
Weak Safety
(Crashes/Collisions
Culture
)

Human Error (As Not fully aware of

"Backup" Driver) responsibilities
 TREATMENT &
IMPLEMENTATION PLAN 

Reduce the Frequency  Retain

• Rigorous Testing • Build a Reserve and make the
proper provisions to retain losses 
• Top Talent
• Safe & Secure Processes
• Additional Funding
• Training Programs for Drivers &
Employees
 INTOLERABLE RISK:
DISSOLVING JOINT VENTURES

Action Operational 
• Dissolving joint ventures in foreign • Business operations in foreign
countries countries will be affected 
• No longer able to rely on foreign
partners
Consequence Strategic
• Exposure to many more and • Former partners now become
severe risks  competition with a comparative
advantage
• Foreign operations become more
costly 
• Increased competition
 Internal and external environment are constantly
MEASURING monitored

THE Continual evaluation of the effectiveness of our

SUCCESS  strategies

OF OUR ERM The success of our treatment plan will be measured

through key performance indicators
PLAN
• We would seek that we are able to exchange
currencies at relatively stable values
• Well exceeding regulatory requirements
• Vehicle releases meeting their critical dates
• The testing of our vehicles exceeding standards
 We recommend GM keep a large
risk appetite  
Click to add text
GM operates in a risky industry
Click to add text and
its risks and structure requires they retain
risk