Risk Management Project

This document discusses risk management in project management and provides guidance on developing a risk management plan. It covers topics such as internal and external stakeholder analysis, strengths and weaknesses, and conducting team meetings. The document also includes a risk briefing report and email templates for communication.

Assessment Task 2:
Risk Management
Project

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Develop a risk briefing report.....................................................................................................1
Risks.................................................................................................................................................3
Internal and external stakeholder analysis.......................................................................................3
Strengths and weaknesses................................................................................................................3
Prepare an email with risk briefing report attached....................................................................3
Prepare an email to team inviting them to a meeting..................................................................4
Conducting team meeting...........................................................................................................4
Develop a Risk Management Plan..............................................................................................5
Prepare an email with risk management plan attached...............................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Risk management is explained as the process where organisation is required to identify
about the potential risk in advance and according to that appropriate precautionary steps can be
taken for reducing the risk (Papadaki and et. al., 2019). It is necessary for organisation because it
allows them to perform better in any of the situation. The chosen organisation for this respective
work is Natural Product Care where they are planning to expand their business to geographical
area.
MAIN BODY
Develop a risk briefing report
Introduction
The main purpose of analysing the risk factor is to reduce the overall risk form the
organisation which may arise upon Natural Product Care.
Scope
It will allow the business organisation to perform better take corrective measure through
which chances of obtaining the goals can increase.
PESTLE Analysis
 Political Factor:
Factor Risk treatments as applicable
This is the factor where decision making
process of government can affect the
business organisation of Natural Product
Care.
It will be important for the management of
Natural Product Care to prepare their plans
and policies according to decision taken by
government.
Subsidies for other business industry can
affect the profitability
Here, company must have to plan they reduce
the overall cost of product so that profit
margin can be increased.
 Economical Factor
Factor Risk treatments as applicable
Due to the effect of inflation customers may Here, it will be necessary for organisation to
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not purchase the product prepare themselves where they can sell the
product at a smaller price.
Importing the product from different cities
can be the expensive process
It is vital for business organisation to start the
manufacturing plant in Sydney, Melbourn and
any other place where they setup their business
because that can be the way to reduce the effect
of this respective factor.
 Social Factor
Factor Risk treatments as applicable
Here, people might not like beauty product
which is being sold by Natural Product Care.
To overcome this respective risk, organisation
has the option to take feedback from customers
to meet out their expectation (Hopkinson,
2017).
 Technological factor
Factor Risk treatments as applicable
Introduction of new technologies might not
allow the employees to perform well in some
of the circumstances.
To reduce the effective of this factor,
organisation has the option to give proper
training to employees so that they can adopt
new situation.
 Legal Factor
Factor Risk treatments as applicable
They might not be familiar with rules and
regulations.
The factor can be dealt by hiring new legal
advisor who can update them for changes in
any of the laws and regulations.
 Environmental Factor
Factor Risk treatments as applicable
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Some of the product might not be eco
friendly.
Company must focus on the manufacturing of
those product which do not harm environment.
Risks
Risk Treatment
Import export charges can reduce the profit. New manufacturing plant can be started
Customers might not like the products of an
organisation.
Marketing team do the proper advertisement of
the product.
Law and legislation might not be same The one who is hired as a legal advisor can
guide about the changes in law.
Language barriers can be the risk factor Local employees can be hired.
Fluctuation on currency can be risk factor. By finding the suppliers from host country.
Internal and external stakeholder analysis
Stakeholders Issues that they can create
Director They might not work as per the requirement of Corporation Act.
Employees They can raise question at the time of adaptation of any of the new
technologies.
Shareholders Resolution may not be passed by shareholders (Taherdoost and
Keshavarzsaleh, 2018).
Customers They can create issues for company by not buying the product.
Suppliers There is high possibility that they might not give raw material at
cheaper price.
Government They have the option to not pass order of establishing the company.
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Strengths and weaknesses
The main strength of Natural Product Care is that they are not able to work as per the
requirement of public. On the other side, the main weaknesses is that prices of beauty product is
very high which doesn't allow them to earn high profit.
Prepare an email with risk briefing report attached.
Date: 19th February, 2020
To,
The CEO,
Brisbane, Australia.
[Subject: Explanation about the risk factor at the time of expanding the business]
Respected Sir,
It has been informed to you about some of the important risk factor which can create
issues for the business organisation during the expansion of business. Those issues are language
barriers, laws and regulation can be the problem also, fluctuation in currency can be the
problem. Kindly help us to overcome with problem and then provide us the permission to move
ahead.
Regards,
Management of Natural Product Care.
Prepare an email to team inviting them to a meeting.
Date: 20th February, 2020
To,
The Team of Natural Product Care,
Brisbane, Australian
[Subject: Inviting the team for discussion on Meeting]
Dear team of Natural Product Care,
All of the member such as Directors, suppliers, manager and shareholders of the company
are required to attain the meeting which is being conducted in the premisses of a company in
order to find out the necessary ways to overcome the problem related to risk factor at the time
of expanding the business.
Regards,
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Management of Natural Product Care.
Conducting team meeting
Date: 25th February, 2020
Present: All Staff
Apologies: None
Purpose of meeting: Discuss new business expansion project
Summary of key points
 Discussion on new outlets which are to be commenced in Melbourn, Sydney and
Brisbane.
 Decision on commencement of business in the month of June.
 Targeting the customers who are more focused towards health concious environment.
 Decision taken on budget required for project.
 Hiring new employees as well as hiring the legal advisor for the company.
Develop a Risk Management Plan
Risk Management Plan
To deal with respective factor, organisation like Natural Product Care will focus more
towards hiring those employees who are local resident of that respective place (Qazi and et. al.,
2016). Secondly, legal advisor will be hired who can advise them about the changes required
within the business organisation.
Risk
As company is willing to earn profit but due to the change in business plan and risk factor
like fluctuation in currency and many more can create issue for the company.
Likelihood
There is high chances that company might have to suffer from the consequences of
expanding the business at new places.
Consequence
If any of the risk bearing factors will not affect the business organisation then in that
respective situation it will be one of those decision which will allow the organisation to gain
huge amount of profit.
Risk treatment/control methods
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For the purpose of dealing with the risk factor, it will be necessary for the business
organisation to understand that they must be able to bring out the alternates. Finding the
alternates will allow to reduce the overall effect of the plan and even chances of obtaining the
result will increase automatically.
Risk management process
It is the process where management of Natural Product Care will try to identify each and
every factor which will allow them to reduce the overall effect of the risk factor. After
identifying, organisation will be able to take necessary steps for effective result.
Risk management procedure
Here, company will have the option to take the help of PESTLE analysis through which it
can be quite easy to identify each and every risk factor which can create issues for them to
perform business activity in Brisbane, Melbourne etc. Then, it is necessary to determine about
the risk factor and its overall impact. It will certainly allow the business organisation to perform
better and even appropriate decision can be obtained from it.
Risk register
Scope of assessment: To reduce the overall impact of risk factor
Critical success factors: PESTLE, Hiring new employees
Internal & external stakeholders: Directors, Customers, Shareholders
Risk Conse
quence
s
Severity
Rating
Likelih
ood
Rating
Treatment or control
methods
Priority
rating (high,
medium or
low)
Order of
priority
Import
export
charges
Profit
will
decline
High Low Staring the purchase the
product form local buyers
High
Customer Sales High Low Proper advertisement will be Medium
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Scope of assessment: To reduce the overall impact of risk factor
Critical success factors: PESTLE, Hiring new employees
Internal & external stakeholders: Directors, Customers, Shareholders
Risk Conse
quence
s
Severity
Rating
Likelih
ood
Rating
Treatment or control
methods
Priority
rating (high,
medium or
low)
Order of
priority
s might
not like
the
products
of an
organisati
on.
can
reduce
and
compa
ny may
have to
shut
down
its
busines
s
done to overcome the
problem
Law and
legislatio
n might
not be
same
Differe
nt
charges
can be
impose
d.
Moderate Modera
te
Legal advisor can help out
to deal with the situation.
Medium
Language
barriers
Difficu
lty may
Low High Local Employees will be
hired who can tackle the
Medium
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Scope of assessment: To reduce the overall impact of risk factor
Critical success factors: PESTLE, Hiring new employees
Internal & external stakeholders: Directors, Customers, Shareholders
Risk Conse
quence
s
Severity
Rating
Likelih
ood
Rating
Treatment or control
methods
Priority
rating (high,
medium or
low)
Order of
priority
can be the
risk
factor
arise to
sell the
product
.
situation.
Fluctuatio
n on
currency
can be
risk
factor.
High
charges
might
have to
be paid
for the
purchas
e of
raw
materia
l.
Moderate High Focusing more on buying
factor from local suppliers
High
Risk action plan
Description of risk Customers may not buy the product
Summary of recommended It will not allow to generate the profit for the company
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response and impact
Proposed actions Conducting advertisement program
Resource requirements Money, local employees
Responsibilities Focusing on the market
Timing During office hours
Reporting/Monitoring Departmental heads
Description of risk Language barriers can be also one of the most difficult
factor for the organisation
Summary of recommended
response and impact
It will create difficulties to sell the product
Proposed actions Hiring local employees
Resource requirements Advertisement, Proper team of HR and fund
Responsibilities Focusing on the employees
Timing During the office hours
Reporting/Monitoring Reporting the HR department of an organisation.
Prepare an email with risk management plan attached.
Date: 29th February, 2020
To,
The Management of Natural Product Care,
Subject: Discussion on Risk management Plan
Respected Sir,
There are lots of risk factor which can create issues for the business organisation
during the time of performing the project. Here, company will like to focus more on alternate
plans which can be handle the risk factor. Along with this email, some of the important risk
management plan has been prepared to tackle the situation which has been drafted.
Regards,
Management Team of Natural Product Care
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CONCLUSION
Form the above file, it can be concluded that there are number of situation where
management of the company is required to prepare plans and polices. Any of the risk factor can
be dealt in those situation where company is able to identify the risk factor in beginning for
better result. Also, conducting the meeting can be one of the better option through which positive
outcome can be achieved in any of the project.
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REFERENCES
Book & Journals
Papadaki, D. and et. al., 2019. Big data from social media and scientific literature databases
reveals relationships among risk management, project management and project
success. Project Management and Project Success (September 26, 2019).
Hopkinson, M., 2017. The project risk maturity model: Measuring and improving risk
management capability. Routledge.
Taherdoost, H. and Keshavarzsaleh, A., 2018. Enhancing Project Performance through
Integrated Risk Management. Recent Advances on Computer Engineering.
Qazi, A. and et. al., 2016. Project Complexity and Risk Management (ProCRiM): Towards
modelling project complexity driven risk paths in construction projects. International
journal of project management. 34(7). pp.1183-1198.
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