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Carenetwest Situation Analysis

CareNetWest Situation Analysis

CareNetWest Situation Analysis
TeamBMBA560
K. Porter
University of Phoenix
MBA/560 Enterprise Risk
R. W. Alden, Esq.
October 20, 2007

Introduction
CareNetWest Companies, Inc was founded by Dr. Tad Smith, to provide quality healthcare to the public. Being a relatively new company, many details have been overlooked in establishing the public healthcare company. CareNetWest has emerged into an industry that is heavily regulated and must comply with Sarbanes-Oxley Act of 2002 (SOX). Many challenges have been encountered in the establishment of the company. Some of the main challenges include: establishing a solid foundation for regulatory risk processes, enacting pending corporate governance, SOX requirements, and best practices. CareNetWest has recently lost its Chief Risk Officer causing the company to lack the internal expertise to address these challenges. Due to the lack of internal expertise, CareNetWest has decided to consult with experts in the industry to facilitate a strategic plan of action to resolve the issues.
Learning Team B will identify and benchmark several companies that have encountered compliance issues similar to CareNetWest. This paper will discuss the various concerns that each company faced, along with the response to the issue, and the outcomes that resulted from each situation.
Situation Analysis
Issues Identification
A situational analysis was conducted for CareNetWest, a newly established public healthcare company. The analysis outlined several risk management issues faced by the company which consist of the implementation and compliance to the Sarbanes-Oxley Act of 2002 ( SOX). The analysis also identified weakness in the company’s corporate governance for best practices and revealed the Board lacked qualified members with expertise needed for implementation and SOX requirements. In an effort to address proactively the internal issues faced by the company: the CEO...