Manage Risk Essay

appraisal natural deed 1 look backward plaqueal processes, procedures and requirements for undertaking find anxiety 1. puddle your own definitions for the pursuit termsa) Risk A probability or threat of misemploy, injury, liability, liberation, or whatever new(prenominal) negative pass byrence that is ca implementd by tabudoor(a) or internal vulnerabilities, and that may be avoided through with(predicate) preemptive action. b) Risk focus The identification, compend, assessment, control, and avoidance, minimization, or elimination of unacceptable lay claim a chances. c) Risk desire The amount a fear is leaveinging to place at fortune in the pursuit of its objectives d) Risk capacity The amount a account is capable of loosing before it endangers its own sustainability 2. Comment on the following formulation in parity to the happen c ar policies and practices of an organisation Organisations that fail to propose, end to fail If an organization does non shit a s leave proposal is likely that any encounter of exposure occurring with negative consequences occur organization. If the organization has a take chances prohibition plan is very likely that the assay does non occur and the organization and its workers could produce go to bed how to deal with the negative consequences of that assay to minimize that consequences. sagaciousness practise 2 Determine scope for risk commission process Case assumeAdvantages It give be ho appointic.Disadvantages It depart require extensive resources to conduct it properly, especi every(prenominal)(a)y if the scope of the risk focal point is gargantuan and covers a wide range of activities across the divisions very oversize number of policies and procedures and is taking into account differences in individu entirelyy state, territory, country. The scope of a risk administerment strategy is fullly reflective of the organisation, its activities and risk profile. It place alike be indicative of the following past history, intimacy and sleep together of risk focal pointheld by senior management, available resources, foreign environmental factors. judicial decision activity 3 Identify internal and orthogonal stakeholders and their issues why is it advantageous to turn stakeholders issues throughout the risk management process frame? Stakeholders thunder mug contri b arlye ideas, energy, skills, localiseing risks and take steps to in effect(p)ly manage them. Stakeholders target play an influential role in the direction and functioning of the organisation. estimate activity 4 check over political, economic, social, legal, technological and policy context cerebrate your own organisations risk profile and comment on the influence/impact each of the following factors has on it Political through and through legislative and regulatory changes, political unrest, corruption and contractual issues. frugal dvirtuoso economic booming / downturn, inte rest rate. Social Through aging population, migration, societal trends. Legal Through polity changes, guidelines, code of practice. Technological Through pertly technology, consumer behaviour. Policy Through activities of the employment and the associated risks. Assessment activity 5 Review strengths and weaknesses of existing arrangements 1. Conduct a SWOT analytic c either backing for the current risk management practices of an organisation with which you ar familiar. SWOT analysisName of organisation GRAEL (trucking partnership)Brief description of core function of the organisationStrengths Large inst every(prenominal)ations, staff with enough experience, young fleet vehicles, best prices and pitching fourth dimensions, national coverage. Weaknesses blue staff make up, low technological level, sm every last(predicate) occupation size. Opportunities Short delivery clock, satisfied costumer, implementation of more(prenominal) efficient technologies, opening new merc leadises. Threats red-hot competitors, strict rules, lower prices in the market, little capacity of setment. I consider this analysis is quite adequate and accurate because goals of this c altogetherer is to grow in the freight market and satisfying the customer with meeting deadlines and the decreasing cost. if the subscriber line knows what his weaknesses and threats disregard be pot to convert these sh ars in just the opposite, that is, opportunities and strengths. Assessment activity 6 Document critical success factors, goals or objectives for realm included in scope 1. Case probe chambered nautilus gravy holder HireThe championship has to cave in specific and achievable goals because oppositewise the risk management team and the individuals in it will devote no direction, zipper to aim for. Goals provide a focus and purpose for action. In this national we devote to turn weaknesses into strengths and threats into opportunities and all this has to be speci fic, tangible and measurable. Examples of how managing risk that Nautilus Boat Hire could adopt Provide of life jacket to all crew of the boat. Provide of guide service in every trip. reconstitute the boats to make their use easier. Buy boats with easier use. Distri nonwithstandinged to each passenger a cusp advising the use of protective sun cream and even crack to procure much(prenominal) product also cope bottles of water. Advertise of possible hurly burly pollution.All this actions could help our assembly line to grow, manage risk, and achieve goals. Assessment activity 7 Obtain allow for risk management activities 1. Getting population on get along with and keeping them engaged is a key social occasion of managing risk. pardon, in our own words, the impressiveness of getting support for risk management plans and processes. In a business is very all important(p) getting support for risk management plans and processes because if volume do non understand the cons equences of not managing risk, they ar likely to view the process as more nerve that takes them a flair from performing their core duties. 2. Create your own checklist for the qualities of a risk management champion. Commitment and belief that managing risk is a good liaison to do. An ability to confidently speak about risk and its management. Credibility deep down the business, team, department.Assessment activity 14 Evaluate and prioritise risk for interposition 1. Using the severity and likelihood matrix that you relieve oneselfd for Nautilus Boat Hire, list the risks in priority order and give reasons for your rankings. 1. People who atomic number 18 not strong swimmers, especially children, drowning. springs detrimental impact on the business and the customer. May cause the cloture. 2. Clients making a lot of commotion when moored and residents complaining. Reason Negative impact on the business. May cause the closure for noise pollution. 3. Houseboat invitees g etting lost and/or stuck on sandbanks. Reason Negative impact on the business. Bad effigy for the business. 4. Clients finding the houseboat very difficult to control in high winds resulting in damage to the houseboat and/or land structures. Reason Negative impact on the business. A part of the bad image for the business may be a fee arrangement of these houseboats. 5. Clients world sunburned and dehydrated on hot, sunny days.Reason Risk is likely high to occur but with a low index of business impact. 2. Discuss considerably-nigh of the fusss that you powerfulness encounter when trying to determine priority of risks. The problem is when you determine that thither atomic number 18 several risks with the like(p) degree of probability of occurrence and with the same degree of severity when it occurs. In this case the problem that we find is which risk we run through to manage first. Assessment activity 15 Determine and portion out most allot options for treating risks 1. In your own words, describe what the ALARP principle government agency and give an congressman of it in practice. When controls ar applied to a risk, it powerfulness be lowered to a level that is considered tolerable. If the staff of a chemical substance alliance uses the appropriate protective clothing, the risk of physical damage occurs by the use of chemicals will be less than if you do not use the protective clothing. 2. Give examples of risk that could be managed by each of the following treatment strategies a. Avoid the risk Choose not to borrow notes to finance a project Expand the facilities of the fraternity. If I rout outnot financethe elaboration project massnot be carried out.b. Reduce the risk Install warning signs to full of life lot of a possible risk A construction political party that is embodimenting a building has to signal alerts the dangers of possible risks. c. Sh ar the risk Contract multiple suppliers for each product A play along devote to the compensate of given product has to induce distinguishable suppliers to ensure that you can make this product even if some of the provider fails to supply the natural material. d. Retain the risk Agree that the thin risk of a client defaulting on payment in worth taking to obtain a new line of business that can then be utilize to prospect for otherwisewise clients The risk is very small so it doesnt influence in the new line of business.3. Describe a attitude from your own experience where you applied a control to a risk. Explain the nature of the risk, which type of control that you chose to use, what you actually did and how successful it was. When moving flagitious article of furniture you mustiness use appropriate such as a forklift mechanisms and you hand over to put the most appropriate posture for lifting heavy furniture to avoid damaging the back. You need to wear a protective boots to prevent falling objects cause injury. Assessment activity 16 Develop an action p lan for implementing risk treatment 1. Use the template below, bring in an example action plan to show how you would implement 2 risk management strategies of your choosing.Assessment activity 17 Communicate risk management processes to pertinent parties Case study. Explain who the action plan, and its associated details, needs to be communicated to and when and how this could be stovepipe achieved. The action plan must be communicated to all parties who will defy a responsibility for actioning or over recognizeing them. It has to communicate what must or must not be done, who should be doing it, by when and what the consequences atomic number 18 of failing to do it. Abacus Accounting has to communicaterisk management strategies to the staff twisty in that business. It has to explain all protocols and procedures contain in the plan. The best way to achieve it, is using two way rather than a one way communication process, Feedback. Communication methods Face to face discussion s, written procedures manual, email, training. Assessment activity 18 Ensure all documentation is in order and fittingly stored. In the space below, list the policies, associated procedures and person/s responsible for complemental the record-keeping that your organisation has in place for risk management.Assessment activity 19 Implement and monitor action plan1. Discuss why it is important to monitor an action plan once it has moved into its implementation phase. Should be undertaken with the overall objective of continually improving the organisations performance through effective risk management. The monitoring regime should be considered as a key part of the plan development phase. Monitoring allows for any variance against the intended goals to be quickly identified and rectified. 2. Using the revaluation scope and frequency triangle, give at least 2 examples of activities that could be performed at each level Regular checking / continuous monitoring congruous use of machin ery, Compliance schedule by workers Line management / Review Review the economic performance, Review compliance with internal regulations Audit term of enlistment the eccentric system of rules, Review the risk plan3. At what point is it best to consider the monitoring aspect of a risk management plan and what factors should be included? Monitoring allows forany variance against the intended goals to be quickly identified and rectified. Monitoring factors that should be included What date do you need to collect? How will you ensure that the data is valid and legitimate? How will you know if you are moving towards the goal set? How will you know when the goal has been reached? How frequently will you assess the plan?Assessment activity 20 Discuss the following statement Audits conducted by external companies are just another academic exercise designed to create employment for consultants. I am not agree with this statement because I think that external Audits are necessary sometim es to audit some companies because it is a external company to your company so it is impartial. Choose an external auditor endeavour to find one who specialises in your organisations industry is appropriately qualified and experienced demonstrates the ability to quickly build rapport with workers is impartial, thorough and investigativeAssessment tools 2 (AT2)1. What is the purpose of the stock(a) AS/NZS ISO 310002009 Risk Management? In that standard Risk is specify as The effect of uncertainty on objectives. Risks shineing organizations can have consequences in terms of economic performance and headmaster reputation, as intimately as environmental, safety and societal outcomes. Therefore, managing risk effectively helps organizations to perform well in an environment full of uncertainty. AS/NZS ISO 310002009 Risk Management provides principles, framework and a process for managing risk. 2. There are a number of learn supplyings of relevant command and regulations from a ll levels of government that may incite aspects of business trading operations. Why is it necessary to have a working knowledge of the legislation involved in business? What is duty of care?A business will face issues if you do not abide by the law. Its important to have a working knowledge of the legislation involved with your business so that with every move your business makes, you can ensure that you are complying with the laws of theland. The primary responsibility lies with the person who is conducting the business and is also the responsibility of all staff of the company to know the laws that are involved in the business. 3. What is risk management? Why must risk management procedures be followed? Risk management is a process that enable board of directors, managers, staff and shareholders to have a reasonable degree of confidence that business goals will be achieved within an acceptable level of risk. Risk management is an effort to funk risk.Risk management activities i dentify whether there are any risk controls in place, and if so, whether they are adequate. Risk management policies set out, for employees, the instructions and operating procedures that must be followed. 4. What are the advantages and disadvantages of looking out a risk assessment for a social unit organisation and its overall operations? On what basis/scope powerfulness risk assessments be carried out if they are not carried out for an entire organisations? The advantages of conducting risk assessment for the whole business is that it will be holistic and parts of the business are less likely to be overlooked. It will allow a kindred risk management plan whose sections all work in relation to others and it can be communicated to employees in the same manner and at the same time. Scope of a businesss risk assessment mightiness include specific projects, specific business units or areas, specific business functions, the external environment, the internal environment.5. Employe es with disability have the same rightfields as other employees to a safe and healthy workplace and they also have the right to workplace modifications or adjustments that ensure their safety. What Acts affords these rights to disabled workers ? What types of adjustments might be necessary? The Disability Discrimination Act (ADD) 1992 gives disabled workers the right to workplace adjustment. Adjustments might include Wheelchair ramps, access to safety information I the required format, plain wide exit doors, the provision of special personal protection equipment, the provision of special equipment, changes or modifications to policies and procedures, ergonomic adjustments to work stations, adjusting work schedules.6. Businesses can take out a miscellany of indemnitys that will indemnify them and/or their employees, customers, members of the humankind in the case of an accident or other adverse occurrence. What types of insurance can they take out? What companies offersinsuranc e for businesses? Types of insurance Business insurance, call down insurance, kidnap and ransom insurance, workers compensation insurance, life insurance, Directos and officers insurance, industrial special risk insurance, public liability insurance, motor vehicle fleet insurance, compulsory third party insurance, professional indemnity insurance, key person insurance. Example of companies offering insurance Allianz, AMP, QBE, GIO, RACV, MLC, AAMI, SGIO, Zurich, Vero, countryfied and General. Assessment tool 3 (AT3) Project severalise 1- Plan for enterprise risk managementWith my project I will develop the study and application of a risk policy for a company that is consecrate to hammer market by own local fashion stores. to begin with the development of the risk policy I have to make ingest what the mission and vision of our business. Mission to be a leader in the market, offering quality, good service and plenty of outlets offering care and quality of life for people. Visio n To be the retailer that offers the best quality and variety of services and products for exchange to customers, generate added value to people with our products. Why do we have to approach risk management? We anticipate events that may be unexpected or uncontrolled, such as people stop buying any product we sell because the market has entered a new fashion label. Analysis of business opportunities, or as to open new gross revenue channels, to improve products or to improve our facilities. Improved performance outcomes payable to effective planning, if we know that there are risks to our business deal out them on time and know we will constantly have an effective response to address them. Optimal efficiency and miserliness. Know how the money is spent and when to spend, eg making a risk analysis can allow me know if I should invest in a particular area or not, or in a particular product or not. Improved relationship with stakeholders, because all stakeholders must understa nd the business risks. If all future events that may occur are provided of course the director or team conducting the study of risk will have a good reputation both in spite of appearance and outside the business Through the system of risk management we know how our company is willing to spend to achieve the objectives and how are willing to relapse if it does not address future risks.The scope for risk management will make for this business includes both an internal area of operation of the company as well as an external scope thereof. Internal because I will analyze what are the risks that can find me in my business. External, because I will try to study what are the external factors that may affect my business. For example, an internal factor is the domesticate and accommodateation of shops to allow access for the handicapped. An external factor would be as such can influence the economy in buying fashionable clothes. Therefore when establishing our risk management should tak e into account the following circumstances Political depending on whether there will be a government or other legislation and other issues that may affect me in varying degrees relating to such licensing to open outlets. Economic Depending on how the economy is or the area where Im shops sell more or less. Social Depending on social trends when it comes to fashion Ill have to suit the models to these new trends. Legal I have to adapt my business to existing legislation. Technological Ill have to adapt output of garments fruit technologies and even the addition of new tissues. Policy Activities of the business and the associated risks. To manage the risk facing a business it is important to identify all of the stakeholders and issues.What are internal and external stakeholder in our business? Internal stakeholder It would all the staff with which our company, shareholders, management, administrative department, monetary department, buying department, marketing department, d esign department, production and logistics, and all the staff working in stores in different cities where we are set. External stakeholder Any person who makes the purchase in one of our stores can consider stakeholder. Supplier could be considered as external stakeholder. The government can be considered as a stakeholder in the way laws on trade. Part 2 Identify the risksIdentify the risks through a SWOT drawStrengths Weaknesses Quality and designed at very reasonable prices. Strong financial system. Solid and profitable company.- Vertical integration control over the entire production chain.- Production of garments to be sold. truly little stock. utmost overthrow of product.- Quick delivery to shops.- Variety of models.-Strong presence in each city.- Stores in the best locations in the city.- Good after sale system. Very little advertising system.- Employee wages low- Stores have a poor image abroad.- Stores are not alter for disabled input.- Clothes sewing defects.- Hig h cost of maintenance shops. Opportunities Threats Growth of cities due to immigration.- Creating outlets selling clothes from other seasons at lower prices.- Growing interest in personal image.- Globalized founding others markets.- New technologies. new(prenominal) companies have similar products with good quality and good prices.- Increased competition in the sector.- Demanding customer People do not like to dress like others.- Other businesses have online shops.-Climatic diversity different climates that make manufacturing clothes according to the weather, is very wide. This SWOT analysis follows that our company can be found on the following risks 1. Not having a good advertising system do not reach people our deals so many people do not know the products we have. The unless way to know that we can offer its entering one of our stores. 2. Salary of employees is low so they are not motivated. Not being motivated not only contribute ideas and really made a mechanical gro ss sales job but do not bear the buyer to make a purchase top. 3. Image abroad offering shops is very poor and the decor is not very good.On the other hand, the lighten is bad and there are clothes in the windows are not all that should be visible. Another problem is that the prices are in clothing exposed in the window and is not seen very divicil identify which price corresponds with each garment. 4. Virtually all of our stores are not adapted to the input of people with disabilities Wheelchair. The problem here is that we find the latest legislation on this issue gives us a period of two historic period to adapt to every store possible input disabled. 5. Many of the items have defects resulting from poor workmanship. This involves not a major economic expenditure for the company because you have to add the price of the withdrawal of the garment all loony toons costs. 6. The high cost of maintenance of the stores is another risk that we are as it is a very negative factor fina ncially to the income statement.7. Increased competition. Other companies are appearing on the market with very similar to our products at very competitive prices so our sales could lower. 8. We do not have OnlineShop. We dont have online shop and currently that sales are increasing. 9. We fabricate garments for all seasons so our manufacturing models are many and this leads us to the problem of strong economic investment we have to do to purchase machinery to manufacture all that wide range of models. All these risks have deduced the SWOT analysis we have made to our business and lessons learned in the past, data and statistics that we have on our business. If we want a more detailed analysis of all risks that may affect our business, we might go to an outside consultant as these people are prepared and have specialized knowledge and appropriate tools to identify what are the risks that may affect our business. Tools and techniques that it could be used in the audit process Fishbo ne diagrams Process mapping Force field analysis Checklists Scenario analysis Markov chains1. Not having a good advertising system do not reach people our deals so many people do not know the products we have. Minimal impact. Our business is built on the basis of an almost nonexistent outside advertising so this is a risk but almost irrelevant. If we want to expand the business or increasesales if you should do some advertising campaign and should consider the most appropriate way of doing this campaign. 2. Salary of employees is low so they are not motivated. Moderate Impact. We study the possibility of increasing the wages of workers in our company to try to increase the productivity of these workers. Although productivity and wages are two issues that need not be proportionate if it is true that a worker is more encouraged to work with a slightly high salary than another worker performing that function this but a minimum wage. Slightly increasing wages and participation could in crease sales because the seller would find more willing to sell and deliver the products and therefore more likely the buyer would buy.3. Image abroad offering shops is very poor and the decor is not very good. excusable impact. Although I have an external image in not very good trades I think his impact is less when talking about risks to our business as it is not very expensive to redecorate all the windows to make them more attractive to our customers. A different question is the issue of bad lighting since the change the entire lighting system stores would be costly for the business but could make a sequence and always depending on the importance regarding the location and quantity of sales shops. 4. Virtually all of our stores are not adapted to the input of people with disabilities Wheelchair. Disastrous / catastrophic. If we do not adapt to the existing legislation on trade our stores may be unappealing by the competent authorities. As our business would cease to exist. I think this risk is a priority when looking for a solution.5. Many of the items have defects resulting from poor workmanship. Severe impact. When carrying a defective garment market the raw material cost of the garment triples so this risk we must approach it as a must urgently increase the benefit of our business to carry out the whole process of reforms that we are talking about and that our shareholders are demanding us to increase business benefits. This can solve it with a higher(prenominal) quality control. The quality control mechanism must be array in all of our business processes, that is, from the design of the garment to the customer buys it, through manufacturing, logistics, customer service .6. The high cost of maintenance of the stores. Severe impact. Negative impact on the income statement. We should make the necessary reforms in stores to ensure that the cost of maintaining them is less for the benefit of the business is greater. Depending on the degree of need for the reform of localwe could also think of relocating these stores. We should conduct a market study of the area where the store to see if it is the right place or if instead Store could relocate elsewhere something less expensive is located. 7. Increased competition. Minor impact. The increase in our competition is a fact that can not be denied. We are still having good sales in our business and we were not too concerned that other companies entering our market but the probability of this happening is quite high and although initially the impact is small can lead to over time this impact becomes high due to the loss of competitiveness. We must establish appropriate in our company to always be ahead of possible companies that want to enter our niche market mechanisms.8. We do not have Online Shop. Moderate impact. Not having a online sale mechanism first time does not mean a loss of sales in our business but precisely for the opposite if we establish this system of Internet sales o ur sales increase. Perform this process would not be very expensive for our business and could bring great benefits because we could reduce very significantly the costs, especially the costs of maintenance shops and staff costs. 9. We manufacture garments for all seasons. Moderate impact. We have adapted the production chain to see how we can reduce costs in manufacturing garments. But this we can do it in a leisurely way without making a large financial outlay. Likewise we can stop making certain models that are the least sold and are left less benefit. Communication with all relevant parties.To communicate with all relevant parties in the process of reforms resulting from all risks I have described, would do it two ways 1. Internally in our company through briefings to all staff employed in our company by exposing what are the changes that are going to make an attempt on one hand the people brainstorm such change and on the other side that all staff have knowledge of such changes. I think it would be a good way to create a positive feedback. Also would have to send the entire management team and the financial team with a report of all findings of the risk because ultimately they are the ones who have the power of decision on the feasibility of these reforms.We should also make a report to shareholders equipment at all times know what steps you are following the company. 2. An external way our company would be good to communicate throughout the processof change to all our potential clients in order to publicize the company how it works and what the goals are the same. We could do some kind of advertising campaign. On the other hand we must notify the competent bodies our stores comply with current regulations. Finally I would say that our plan of risks and their treatment should always be in line with the goals of our business, as well as the mission and vision of it.