Page 14 - SCS May 2018 - Day 1 Suggested Solutions

CIMA MAY 2018 – STRATEGIC CASE STUDY

Loss of employees
Mitigation
Although there is not much detail on it in the pre seen, it does mention employment of skilled
staff to help develop new technologies. To attract and retain such staff they must offer good
compensation, but also their mission “always entertaining” is simple and focussed on what they
do; this can often lead to attracting staff who are passionate about this area.

Reliance on third parties
Mitigation
Building strong relationships with suppliers of content and the internet service providers, but also
Jen Kramer’s legal background is likely to help make sure any contracts have appropriate
content/protection. Another mitigation is to increase the proportion of content produced
internally.

Currency risk
Mitigation
Given the size of Couchweb and the number of countries they operate, they are likely to use a
variety of internal hedging techniques to reduce any currency exposure.

Lost revenue
Mitigation
Couchweb would need to monitor excessive usage of members and flag any for review that seem
to be using multiple IPs in a day, or watching the same content several times from different IP
addresses.

Finally, it is also be useful to specify a particular person to be responsible and accountable for the
risk and control actions.

In conclusion

A risk register would be beneficial for Couchweb to help them manage the risks they face and
communicate the steps they are taking with the shareholders.

50 KAPLAN PUBLISHING