Assessment 2: Risk Management Plan for Woolworths

Read this risk management plan for Woolworths, a retail company headquartered in Bella Vista, New South Wales. The plan includes identification of internal and external stakeholders, organizational risk concerns, strengths and weaknesses of risk management practices, and a risk management plan. The plan also includes details of the insurance necessary and methodology for measuring the success of the action plan. The documents required for the workplace health and safety risks, finance teams, and legal aspects are also mentioned.

Running head: ASSESSMENT 2: RISK MANAGEMENT 2
ASSESSMENT 2: RISK MANAGEMENT 2
Name of the Student
Name of the University
Author Note

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Action Plan
1. Organization background
a. Company name- Woolworths
b. Location- Headquartered in Bella Vista, New South Wales, operates across various Australian
cities.
c. Nature of Business- Retail
d. Annual gross revenue- 56.7 billion AUD
e. Number of employees- 115,000
f. Others- Parent organization is the Woolworths group
2.
a. 5 Internal Stakeholders-
1. Employees, 2. Team leaders, 3. Managers, 4. Maintenance staffs, 5. Board members
b. Risk concerns
- An example of employee risk concern is health and safety
- A risk concern for team leaders is improper task allocation
- A risk concern for managers is data breach
- A significant risk for the maintenance staffs is workplace safety
- A very important risk for the board members is legal issue
3.
a. Identification of 5 external stakeholders
1. Citizen’s forums, 2. Investors, 3. Government, 4. Suppliers, 5. Customers
b. Risk concerns for each identified groups.
- For citizen’s forums an important risk is providing low quality services and commodities
- For investor groups the main concern is loss on return on investment

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- For the government the main concern is formation of stricter regulations on commodities
- For suppliers the main risk is transport infrastructure failure
- For customers the main risk is quality loss of the products
4. Organizational risk concerns
a. Political- political instability
b. Economic- high tax rate
c. Social- growth of dissatisfaction among people concerning the products
d. Technological- failure of the internal ICT systems
e. Legal- Lawsuits against the organization
f. Environmental- high generation of waste from the organization causing environmental concern
5.
a. 2 examples of strengths of organizational risk management
1. Availability of data
2. Sufficient capital backing
b. consideration of the strengths
- Woolworths has a strong ERP system that helps to keep in check all the necessary resources
that are required. The company has essential availability of information that helps to create a
significant database required for the assessment of risk situations.
- The company is large enough to handle the financial aspects that are connected with the risk
management procedures and exercises that are requires.
c. 2 examples of weakness of risk management practices
1. Inability for quick response to risk situations
2. Lack of direct communication with a large number of stakeholders
d. consideration of the weaknesses

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1. The company lacks a strong system to engage in quick risk management. There is a lack of
infrastructure that can facilitate the same.
2. The organization has a large number of stakeholders. Establishing communications with them
becomes difficult many times.
6. Risk management plan
a. Success factors
- Relevance
- Feasibility
- Dedication
- Goal oriented
- Specific
- Time-bound
- Aligned with the organizational vision.
b. Goals and objectives
- Identification of the most important risk factors
- Essential stakeholder identification
- Formation of clear risk management strategies
- Solve the identified risk issues
- Creation of risk prevention strategies
- Effective management of crucial risks
- Creation of better stakeholder engagement
- Development of effective communication with the internal and external stakeholders

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7. Research Methodology
The research process would have to include most of the stakeholders. The risks
associated with the individual stakeholders need to be identified. The risks need to be assessed
on the basis of the degree of threat that are posed by them. The significant risks would need to be
identified in accordance of the degree of threat that can be associated with them. It would be
better if both quantitative and qualitative data is gathered from them. This would help in the
more effective understanding of the entire process. The method would need to make the process
of understanding the risks smoother and more effective.
8. Creation of Risk assessment matrix
Likelihood Consequence Treatment Priority
Risk 1:
health and
safety risk
Medium as the stores
are large with many
operational areas
The company
reputation and
employee rights
can be violated
Creation of
WHS standards.
Development of
WHS
frameworks and
provision of
training to the
employees
The priority is
high as the
responsibility of
the organization
to maintain
health and safety
of the workers
become very
important
Risk 2:
Financial
risks
Medium to low as the
organization is
currently financially
stable.
The company
may incur huge
losses as a result
of financial
issues. The
organization
may fail to get
effective growth.
Provisionary
fund creation,
Assessment of
financial risks,
creation of better
financial
strategies.
This is a
significant
priority as the
entire system of
the organization
is based on
financial
frameworks of
profitability.
Risk 3:
legal risks
Medium to high as the
organization engages
in the sale of many
The company
can incur huge
losses to
The
development of
strong legal risk
This is a
significant
priority as the

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products with vast
legal areas to address.
finances,
reputation,
goodwill and
public relations.
strategies are
important. The
creation of
separate legal
teams can help.
organization is
vast enough to
face legal risks
from many
different areas.
9. Action plan for each treatments
Treatment Actions
required
Responsible
person
Deadline Review
treatment
date
Communication
method
Creation of
WHS
standards.
Development
of WHS
frameworks
and provision
of training to
the
employees
Creation of
WHS
frameworks,
Providing
directives to
employees,
creation of
WHS
training plan,
creation of
WHS
infrastructure
The WHS
team,
Managers, the
employee
management
teams, HR
head.
3 months 12/12/2019 Posters, emails,
ICTs, audio-
visual
presentation.
Provisionary
fund
creation,
Assessment
of financial
risks,
creation of
better
financial
Creation of
provisionary
funds,
Creation of
special
financial risk
assessment
teams,
developing
Organizational
finance head,
Finance
teams,
Finance
managers,
Provisionary
fund managers
6 months 12/3/2020 Emails, data
charts, flyers,
ICTs and
financial
statements

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strategies. better
financial
management
frameworks
The
development
of strong
legal risk
strategies are
important.
The creation
of separate
legal teams
can help.
Creation of
legal teams,
establishing
relationship
with
soliciting
firms,
development
of legality
management
plans,
development
of legal and
ethical
frameworks
Legal
managers,
Board
members,
CEO, Solicitor
firms
6 months 12/3/2020 Email, news
release, annual
report, ethical
report, CSR
report,
presentations,
social media
posts.
10. Summarization of the documents
The documents that would be required for the workplace health and safety risks are WHS plans,
employee safety regulation documents, organizational risk calculator documents, workplace
safety issues documentation. Risk assessment plan is much required. The documents that are
required for the finance teams are financial plans, financial risk assessment documentation,
financial reports, and sustainability of finance documents. Monthly and yearly profitability
reports, sales reports, inventory sales report, sales forecasts and other documents related to the
financial areas of the organization. The documents that would be much required for the legal
aspects would be legal plans, legal development agendas, legal fund documents, legal framework
creation documents and other ethical and legal documents.

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11. Methodology for measuring the success of the action plan
There is a need to develop some key performance indicators on the basis of which the plans
would be assessed. This would mean the creation of three separate planning frameworks for the
three separate risks of safety, finance and legal. The success would be measured and evaluated in
accordance of these performance indicators. It is important to notice the success factors that are
the most important for each of the identified areas. The main factor would be to evaluate the
significant aspects that are connected with the developmental plans. It is important to evaluate
the success on the basis of the future success aspects that the organization would like to focus on.
It becomes crucial that the objectives should be aligned with the changes that are necessary. The
methods need to be systematically progressed. This would ensure that the most important aspects
are addressed through the methods that are utilized.
12. Details of the insurance necessary
There are many significant areas that should be considered for insurance given the fact that the
Woolworths is a large corporate entity. Firstly, it is necessary to insure all the retail stores of the
organization. The large operational areas of the company are faced with significant risks that can
affect them. This is important for the safety of the operations. The insurance companies that are
largest with respect to the city of operations should be engaged in this process. Secondly, the
employees should be provided with health and safety and medical insurance. This is important as
the medical insurance of the employees would make it feasible to implement a strong WHS plan.
This would also ensure better employee engagement. The employee’s provident fund,
employee’s state insurance, etc are important in this case. Thirdly, the company should get legal
insurance. This is because a large legal area is there which the organization would need to
address. The insurance is required as the organization can face legal issues that can potentially
ensure that no large financial losses are incurred by the organization. The large financial
insurance companies of Australia need to be engaged in this process. Fourthly, the equipment
that are used in the inventories and the stores should be ensured. These are the technological
assets of the organization. Hence, there can be significant implications for the organization due
to the losses that can be incurred from their failure.
Bibliography

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Safa, N.S., Von Solms, R. and Furnell, S., 2016. Information security policy compliance model
in organizations. computers & security, 56, pp.70-82.
Woolworths.com.au. (2019). Woolworths Supermarket - Buy Groceries Online. [online]
Available at: https://www.woolworths.com.au/ [Accessed 13 Sep. 2019].

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