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The Difference Between the Internet and the Web

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There is an important difference between the internet and the World Wide Web or the Web. Internet refers to the entire infrastructure which allows otherwise incompatible individual computers to communicate with each other, regardless of where they are located. Basically, the internet refers to all computers, telephone or cable lines and network cables that make it possible for any computer to communicate with any other computer, as long as they are connected to the internet.

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PR Activities Which Require Use of Media

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One such activity is sponsorship. Sponsorship refers to a situation when an organization supports a cause or event via contribution of some of its resources, which may include monetary and other resources. Examples of sponsorships include supporting sports events, charities and providing education grants.

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Media, Medium and Channels

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Media refers to the channels via which particular message of the public relations campaign reaches stakeholders. Medium makes it possible for the campaign to reach stakeholders through the use of one or more channels. It can refer to mass media or to individual. Channel refers to a tool which is used to carry information. A channel is a medium of communication.

PR and media

Media refers to the channels via which a message of the public relations campaign reaches stakeholders. Media is not only an important stakeholder for a business but also make it possible to communicate with all other stakeholders of the business.

Types of media

Media can be of two types, controlled or uncontrolled.

Controlled media are usually paid media over which businesses have some control. An example of controlled media can be the annual report.

Uncontrolled media is unpaid media over which organization does not have control. An example of uncontrolled media is a news release. Media representatives, such as editors of a newspaper, will have control in such situation regarding whether this information will be published and in which form it will be published.

Choosing the media

When choosing appropriate media, public relations practitioners should consider which media is accessible to targeted stakeholders and which media they prefer. Available budgets should also be considered.

 

PR Campaign (Public Relations Campaign)

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PR campaign refers to undertaking organized communicating activities to achieve a specific objective, usually within a specified period of time. Organized communicating activities may include research on the subject of the campaign, creating a combination of messages and ongoing provision of a lot of information, distributing information and evaluation of the success of the campaign.

The general objective of a PR campaign is to influence behavior of a large audience of targeted diverse stakeholders in one way or another.

Specific objectives of PR campaign can include changing or reinforcing an attitude or behavior of targeted stakeholders. It can also be to educate, create awareness or inform stakeholders about specific issue. Objectives of a PR campaign may also include all of the above.

PR campaigns can focus on products or services, be political or be ideological or focus on particular issue or cause.

PR campaign management consists of four phases: research, planning, implementation and evaluation.

The PR campaign is affected by the business environment. A business environment is very turbulent and continuously changes. Ongoing environmental scanning is essential for public relations practitioner to be well informed about happenings in the business environment to ensure that such changes can be incorporated into the public relations campaign planning and management.

PR campaign planning

Effectiveness of the PR campaign is measured by whether or not the general objective of the PR campaign is achieved. In other words, whether the behavior of the targeted stakeholders was influenced in a way organization intended. To ensure effectiveness of the PR campaign, it is vital to undertake systematic public relations campaign planning.

There are various campaign models the public relations practitioner may use to systematically plan a PR campaign. One of the models is four-step public relations campaign model by Cutlip, Center and Broom. Other modules include the communication by objectives model developed by Fourie, Steyn and Puth’s. All models are similar but differ in some respects.

To take a look at one of the models, we will briefly discuss the Cutlip, Center and Broom model. The four-step process suggested by those authors are:

  1. Defining the problem – this refers to the research phase. The focus is on understanding the current situation.
  2. Planning and programming – this step refers to determining programs and policies. The focus is on what should be done to achieve the objectives of the campaign.
  3. Taking action and communicating – this step is where implementation takes place. It focuses on how particular actions should be undertaken to achieve the objectives of the campaign.
  4. Evaluating the campaign – the last step focuses on evaluating the effectiveness of the campaign. This refers to whether the objectives were achieved.

In planning the PR campaign, other important aspects to consider would be the profitability of the campaign. A PR campaign can be very expensive and analysis should be undertaken to see if the campaign will bring a greater benefit to the organization compared to the cost involved in implementing it.

In the planning stage of the PR campaign, the important aspect is feed-forward. This refers to researching beforehand the targeted stakeholders and how the stakeholders might react to particular messages.

Research of targeted stakeholders should include such variables as demographic characteristics of the targeted stakeholders. This refers to such aspects as age, gender and religious beliefs.

Comprehension capacity of the targeted stakeholders also must be understood. In other words, how well educated are the stakeholders and what is their level of understanding and knowledge about the subject of the campaign.

Communication habits of the targeted stakeholders also must be considered. This refers to such aspects as which language the targeted stakeholders speak and which media they prefer. In researching targeted stakeholders, public relations practitioners may gain a better understanding on what kind of approach for the campaign they should select. The types of approach may include being serious, emotional or humorous.

The probing of how targeted stakeholders might react to particular messages may be achieved by, for example, giving an indication to the stakeholders of the message of the proposed campaign. This can allow evaluating of potential opposition of the stakeholders to the campaign. This information can be used to adjust the campaign to better meet the needs of opposing stakeholders or to prepare to deal with the opposition.

Ensuring effectiveness of the PR campaign

For the PR campaign to be effective, it must establish an image of being revolutionary in nature. It must entice targeted stakeholders to buy into the message communicated and to identify themselves with the message.

Moreover, for campaign to be effective, the communicator, organization and medium must be perceived as credible by targeted stakeholders. Media makes it possible for campaign to reach stakeholders through use of one or more channels. It can refer to mass media or to individual mediums.

It is important to ensure the public relations campaign is culturally acceptable to all stakeholders and that channels used to communicate messages are accessible to targeted stakeholders. Channel refers to a tool which is used to carry information. Further, media refers to the channels via which the message of the public relations campaign reaches stakeholders.

The PR campaign must also incorporate values and norms of the organization and of targeted stakeholders. If this aspect is ignored and the values and norms of stakeholders will conflict with the campaign – such a campaign will likely not be effective.

For a PR campaign to be effective, it must be supported by top management.

During and after implementation of the PR campaign, public relations practitioners need to obtain and respond to the feedback from the stakeholders.

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Public Relations: Collecting Data

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Public Relations campaigns must be data driven. Data, data, data must guide your thinking and approach. Many, many public relations firms simply follow the crowd. They generate press releases, contact authors and so on. This will get a company’s name out in the market but will not build a brand.

Below are three forms of collecting data:

Market research is research with intent to find information on specific issues, problems or opportunities. It is conducted when a need arises and not on an ongoing basis.

Market intelligence is an ongoing process of obtaining relevant information about the business environment on a formal and informal basis. Formal market intelligence procedures occur when specific personnel are assigned to search for any relevant information on the business environment. Informal market intelligence procedures refer to ongoing scrutiny of newspapers, magazines, industry related publications, relevant books and any other external sources which may contain relevant information on the business environment.

Internal data – refers to collecting data from internal reports of the organization. Internal reports may include billing reports, reports on inventory levels, at cetera.

 

Continuous risk management learning

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Continuous risk management learning is essential for effective risk management performance. Organization needs to leverage and further develop knowledge within the enterprise regarding risk management processes. Continuous learning leads to continuous improvement.

Sources and tools for continuous risk learning

  1. Learning from experience is an important source of learning and newly gained knowledge should be shared
  2. Best practices should be shared throughout organization
  3. Risk management learning should be incorporated into planning for training and development of employees

Enablers of continuous risk management learning

To ensure that continuous risk management learning becomes part of an organizational risk management culture, the following actions should be undertaken:

  1. The appropriate behaviors should be enticed and reinforced. Continuous learning objectives should be aligned with performance measurement
  2. Endorsement by management of the importance of risk management learning is also vital to support continuous risk management learning. Employees should be provided with resources, tools and support
  3. Adequate risk management culture is another enabler of continuous risk management learning
  4. Learning should be incorporated into the risk management strategy

Risk Management Responsibilities

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Board of directors

The board of directors is ultimately responsible for the risk management process. The board needs to understand important risks faced by the enterprise and needs to provide guidelines on the enterprise’s risk appetite and risk management process. The board is responsible to continuously ensure that adequate risk management processes are in place. However, the actual risk management activities must be delegated to the risk management function.

Risk management environment

The risk management environment involves matters associated with people such as culture, philosophy, how people are trained and developed, how appropriate behaviour of employees is incentivized, reinforced and compensated.

Culture is an important part of the risk management environment. Endorsement of the appropriate risk management culture by all levels of management within the organization is vital for successful risk management processes. Such endorsement should be evident from management’s attitude as well as from resource allocation. The values of an organization need to reflect that risk management is important. Buy-in (acceptance) from all employees with regards to the importance of risk management is necessary. Accountability should be assigned to business units, divisions and employees for their required input into the risk management process.

Performance of employees should be aligned with risk management objectives. Only this way will employees will be enticed to bring their utmost effort in executing their contribution to ensure appropriate risk management. Adequate performance with regard to risk management objectives should contribute to rewards for the employee.

 

Enterprise Risk Management Process and Infrastructure

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Enterprise risk management involves a process consisting of establishing the following:

  1. strategy
  2. appropriate infrastructure
    1. different kinds of structure established within an enterprise such as organizational structure, different kinds of systems such as information system which refer to how information is collected, used and shared, determination of accountability, responsibility, methodologies to be used, control procedures
  3. environment
    1. involves matters associated with people such as culture
  4. operating philosophy
    1. refers to command and control or empowering (centralized or decentralised), how people are trained and developed, how appropriate behaviour of employees are incentivized, reinforced and compensated)

Enterprise risk management provides organizations with knowledge which allows them to systematically manage risks in an enhanced manner.

Enterprise risk management infrastructure

ERM infrastructure refers to a type of structure within an organization which is required for a successful risk management process. It refers to different tools that risk management process can use to ensure its success and includes the following:

  1. An organizational structure
  2. Risk management systems
    1. An example of a risk management system is the information system which meets informational risk management needs throughout the enterprise. Information systems should be designed and managed in a way which ensures that the system is flexible, meaning that the way in which information presented will allow various users within the enterprise to use it for their specific informational needs. The information system must also be user friendly. This will ensure that employees within the enterprise can obtain the maximum value from the system. Information systems should allow for fast recording, evaluation, summary, consolidation and sharing of information. The informational system should also be efficient. This refers to the necessity for the system to be designed in an efficient way to ensure that no tasks are unnecessarily duplicated throughout the enterprise as well as to make sure that no unnecessary activities are performed
  3. Determination of accountability and responsibility
  4. Methodologies and techniques to be used in risk management:
    1. Established control procedures
    2. Risk management unit which is at the center of risk management within the organization
    3. Risk management policies and procedures – refers to the set of rules of how risk management is undertaken within the enterprise. A top-down approach should be used to develop risk management policies and procedures. A top-down approach will ensure consistency and alignment with the risk appetite (how much of risk the company wants to accept) and business strategy. Risk management policies and procedures must be developed with input from all levels of the management from all areas of the business to ensure their alignment as well as to incorporate their knowledge about specific risks faced by their areas. Risk management policies and procedures should also be understood by all employees
    4. Reporting on risk management process – the addressee of the reports on risk management process performance should be in close proximity to the risks to be able to take timely action.

 

 

Types of Risks

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Below we describe types of risks:

Inflation risk – refers to risk that money today will not worth as much tomorrow, or in a year. Many safe investments, such as fixed deposits offered by banks do not keep pace with inflation.

Opportunity risk – risk that a safe investment that is undertaken will lead to the loss of additional return that could have been earned if money were placed into a better investment.

Concentration risk – risk of putting entire funds into one investment such as an investment in one’s own business or investment in shares of a specific company. If such an investment will not yield the return that was expected than there is no other investment that could make up for such loss.

Interest rate risk – risk that interest rates will fluctuate with adverse effects on the company. For example, an adverse effect those changes in interest rates can have on servicing debt.

Marketability risk – refers to risk that marketability of the investment may turn out to be low. It refers to the chance that if the need arose to sell the investment in a timely manner, there will be no ready market to sell it to.

Credit risk – refers to possibility that the borrower will not be able to meet its obligations as it comes due.

 

Consolidation of Risk and Improved Performance

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By linking consolidation of risk to improved performance of the organization, value is created. By consolidating risks, organizations obtain information which allows to undertake evaluation, analysis and management of risk more effectively.

Enterprise risk management (ERM) establishes the foundation which improves decision making with regards to risk, return and growth. The foundation consists of assessment tools, common language, determined risk tolerances and strategies, all of which are encouraged by enterprise risk management.

ERM allows identifying internal and external best practices from which all enterprises can benefit. As a result of enterprise risk management, organizations better manage risk profiles (with the help of tools such as RAROC), reduce unacceptable risks, strategic errors and undertake more timely and adequate corrective actions.

Risk management strategies create value by trying to avoid unacceptable losses, encourage using the core competencies of an organization and managing variability of performance.

To achieve connection between risk management and enhanced performance of the enterprise, we need to measure how performance is affected by changes in the risk profile which occur due to the implementation of risk management strategies.