State Farm Risk Register
Xavier Smith
Western Governors University
State Farm Risk Register
State Farm has chosen to further to its already-existing operations in Canada, with the result of capturing millions of new customers. These customers will require both brick-and-mortar and telephonic support. Brick-and-mortar locations number in the thousands and continue to grow. With the acquisition of a greater number of customers, these locations will be able to absorb and support a respectable number of these new customers. Yet internal analyses indicate that the younger customer base, that is, customers in their 20s and 30s, prefer virtual or telephonic interactions and will actively shun brick-and-mortar locations. It is these…show more content… The likelihood of not being able to meet the requirements of the codes is very low; however, the influence of not meeting these codes is very high, since, in a worst-case scenario, the government would not approve the call center to be constructed, which, of course, would affect customer-response rate for newly acquired customers.
This risk can be transferred to the onsite contractor and project manager, since it is their responsibility for mitigating these risks and meeting the timelines set forth for completion of the project. These contractors are required to provide a progress report every other week.
Canadian Permit Delays
Similar to building codes, State Farm is required to have a permit to operate the call center. The source of this permit requirement is the local and national Canadian authorities. The influence of not appropriately managing this risk would be, in a worst-case scenario, the inability to complete construction of the call center. If the call center were successfully opened but a permit expired, the government may require the call center to close until permit issues have been resolved.
The principal concern with not managing this risk is the imposition of massive fines on State Farm. A secondary concern is the closure of the call center if the permit cannot be procured.
The likelihood of this risk is low, considering State Farm has
