Franklin Electric Supply And Risk Management - 1635 Words

Co-op Company Background Founded in 1944, Franklin Electric has grown from a small motor manufacturing company into a leading global provider of complete water systems and fueling systems. Franklin Electric’s principal markets include clean water systems, water transfer and grey water systems, and fueling systems. Franklin Electrics headquarters started in Bluffton Indiana but has since moved to Fort Wayne Indiana. Franklin Electric serves all over the world with more than 14 manufacturing and distribution facilities. Throughout the interview process I met with Ben Johnson and Jeff Frappier. Ben Johnson is the credit and risk management Manager. Jeff Frappier is the Treasurer Assistant Secretary. Besides interviewing these managers,†¦show more content†¦This saves them from having to pay off a loan that could cost them thousands in interest alone. The second objective for Franklin Electric is to maintain profitability while penetrating competitive markets. Franklin Electrics goal is maintain as much profit as they can in order to expand their business into other fields of service and manufacturing. ERM Framework Franklin Electric uses COSO framework to assess and mitigate risk. COSO stands for the Committee of Sponsoring Organizations and was established in the mid-1980s. The model gets broken into 8 different sections, internal environment, event identification, risk assessment, risk response, control activities, information communication, and monitoring. COSO contains eight different sections. †¢ Internal Environment †¢ Event Identification †¢ Risk Assessment †¢ Risk Response †¢ Control Activities †¢ Information Communication †¢ Monitoring Internal Environment includes establishing the tone of the organization, how much risk the company is willing to take on, attitudes towards risk management and the ethical/unethical values. The people on the board set the company’s tone. If the individuals on the board are lacking knowledge and experience it is very unlikely that the board is setting the right tone. Objective setting allows the board to set objectives that support the organizations mission and views toward risk. In order to set objectives correctly the individuals on the board need to be aware of risk