Risk Management Action Plan for NatureCare Products

This Risk Management Action Plan outlines the strategies and resources needed to mitigate various risks associated with the establishment of new retail outlets for NatureCare Products in Brisbane, Sydney, and Melbourne. The plan addresses risks such as disaster recovery, manpower deficiency, service quality, operational infrastructure, and cost escalations.

BSBRSK501 - Manage Risk
ASSESSMENT TASK 2

CONTENTS
ASSESSMENT TASK 2.................................................................................................................2
Email to the Marketing Manager and the Office Manager..........................................................2
Risk Management Action Plan....................................................................................................2
Email to CEO...............................................................................................................................6
Email to Marketing Management and Office Manage for advising............................................6
REFERENCES................................................................................................................................8

ASSESSMENT TASK 2
Email to the Marketing Manager and the Office Manager
August 30, 2019
The Marketing Manager & The Office Manager
NatureCare Products
Brisbane
Respected Dignitaries,
NatureCare Products has been enjoying the operations and customers are served with high quality beauty
skincare products. However, it needs to expand or establish retail outlets in Brisbane, Sydney and Melbourne
for increasing profits and customer base. Undertaking risk analysis on establishing outlets is required so that
expansion may be a success. It is believed that expansion will contribute to company’s objectives to
maximise product range, increased customer base and increase repeat business from prevailing customers.
The meeting has been scheduled at our main office in Brisbane on September 5, 2019 at 10 AM. Looking
forward to meet both of you and request you to make your presence at the earliest for enhancing business’s
goals and objectives through our new move.
Thanking You,
Yours’ Sincerely,
Operations Manager
NatureCare Products
Risk Management Action Plan
Scope of Strategic
Priorities for
NatureCare:
Establishing outlets in Brisbane, Sydney and Melbourne to
maximise customer base and attain growth.
Critical success factors,
goals and objectives:
Increased competitiveness, Expansion of the product range,
Increase their market share, Eco friendly suppliers are critical
success factors.
Internal & external
stakeholders:
Internal stakeholders of NatureCare Products are employees and
supervisors or managers. While, external stakeholders are
2

distributors, customers, government and risk auditors
3

Risk
Description
Likelihoo
d
(HL/L/
P/U/R)
Consequ
ences
Rating
(E/
VH/M/
L/EL)
Level of
Risk
Impact
(L/M/
M/S/
H/M/S)
DESCRIPTION OF
Potential Impact Actions and resource requirements Timeline Responsibil
ity Monitoring process
Priorit
y
Rating
Disaster
Recovery
Plan Likely Very
High High
The disaster can occur at any time destroying
beauty skincare products. This could likely
impact NatureCare and its consequences are
very high as well. It was acknowledged that
storm had hit Australia and power shortage
was noticed. Severe power shortage will
hamper production output. In order to fulfill
increased demand of people, disaster
recovery plan is needed so that rescue can be
made in case of power shortage for longer
hours are made (Kerzner, 2017).
Getting necessary equipment and
making correspondence with Australia’s
Bureau of Meteorology for weather
updates in case of disaster likelihood.
Production in advance will be made up
to certain units when disaster would
likely to occur. This would not hamper
production and incur losses.
It will be
completed in
7-8 days.
Managemen
t Committee
The monitoring process will
be done based on day-to-day
updates from meteorology
department. Further,
checklists will be made as to
analyze the progress of the
action to mitigate this risk
(Doppelt, 2017). With the
help of monitoring process
on line, NatureCare will be
able to mitigate disaster to
establish retail outlets in the
locations.
2
Manpower
Deficiency Possible Very
High Major
Expanding to more branches often
complexes the situation to hire talented
candidates. It is required to hire skilled
employees possessing the required abilities
and capabilities to perform assigned tasks in
righteous manner (Hopkin, 2018). Right
people at right place and at right time are
needed. However, due to gloomy economic
conditions, getting right candidates hinder
firm’s operations. This should be overcome
so that desired productivity can be
accomplished.
Offering referral incentives to existing
employees will motivate them to help in
hiring skilful employees who belong to
their friends or family. Using social
media to share required post on entire
network and allow encouraging two-
way conversation. Someone’s who is a
good fit to post would apply as per
requirement criteria.
It will be
accomplishe
d within 15
days.
HR
Department
is entrusted
with this
responsibilit
y.
Monitoring process will take
place after posting jobs on
social media channels
(Charter & et.al., 2017).
After that, screening will be
done as per job criteria so as
to ascertain fitting the job.
Then, candidate can be hired
matching profile accordingly.
This monitoring process will
be helpful in getting
appropriate results and
deficiency in manpower
could be overcome.
3
4

Service
Quality
Highly
Likely Medium High
NatureCare Products is engaged in offering
beauty skincare commodities and almost 70
% customers are women. Service quality
needs to be good because operational
expansion to more retail outlets will affect
service quality up to a major extent. Since,
operations of NatureCare Products will
expand; service quality risk will be faced by
it because of lack of operations and lack of
manpower. This will affect customer’s
experience on both online and offline basis.
The customer’s priorities will need to be
addressed. Thus, tailored products can
be offered to them (Trigeorgis & Reuer,
2017). Encouraging agent feedback is
necessary so as to analyse customer’s
needs. After that, listening to customer’s
queries, agent in direct contact with
customer can enhance service quality.
It will be
completed
within 10
days.
Marketing
Manager
and
customer
service
representati
ves are
responsible
for it.
The service interactions will
be analysed at all levels by
asking customers to provide
their feedback. Moreover,
inefficiency in service quality
will be removed quite
effectively to enhance service
quality level (Mansoori &
Lackéus, 2019). Through
this, monitoring will be
accomplished and service
quality can be improved as
well.
1
Underdevelo
ped
operational
infrastructure
Possible Extreme High
The operational infrastructure is required to
be effective unto certain terms. Since,
expansion of business’s retail outlets into
various locations, operations need to be
improved. This could affect NatureCare
Products regarding its sustainability in the
long run. Systems in it include
communication channels, planning,
formulating policies and rules and training
and development (Hazen, Skipper, Boone &
Hill, 2018). By synchronizing all these,
likely impact of risk can be mitigated.
Without, synchronization, beauty products
cannot be delivered to customers in absence
of appropriate process. Thus, this risk is
required to be resolved to attain desired
objectives and goals.
The resources and actions required here
are perfect synchronization of
interconnected business process and
operations. Re-validating business
model of NatureCare Products will be
required for gaining good results and
overcoming underdeveloped operational
infrastructure. Time ranging
from 10-15
days.
Operations
Manager is
entrusted to
be
responsible
for it.
The monitoring process can
be initiated by making
checklists. With the help of
this, progress of
communication channel,
training and development,
policies and procedures and
related activities can be
assessed (Ransbotham &
et.al., 2017). This will help to
make ensure that NatureCare
Products is able to improve
its operational infrastructure
for offering goods to
customers. Hence, risk can
be mitigated quite
effectually.
4
Cost
escalation
Likely Very
High
High The cost escalation is another major risk
affecting business’s expansion. Three
locations are to be set-up in which retail
Loan from bank and venture capitalists
will be approached. These resources are
quite good for availing finances.
It will
require
nearly 20
Accounts
Manager is
responsible
Budget will be formed so that
amount taken may not
exceed actual funding
5
5

outlets need to be bought or rented. It is
required that funds are available at disposal
so that financial obstacles may be overcome
quite effectually. Funds for buying software,
hardware, furniture plus rise in employee
costs are needed (Papke-Shields & Boyer-
Wright, 2017). Cheaper facilities need to be
availed for meeting financial requirement for
rapid expansion at different locations.
Moreover, with good financial standing,
bank loan can be availed without any
difficulty and so as venture funds
(Luftman, Lyytinen & Zvi, 2017).
Hence, with such resources and action in
place, costs will be met with ease. days for
completion. for it.
requirement. In simple
words, expenditures will be
forecasted, and cash flows
will be monitored. This will
help NatureCare Products to
make sure that actual cost
does not exceed the budgeted
costs. Thus, with accurate
cost estimates in place,
escalations will not occur. It
will benefit company in long
run.
LIKELIHOOD
CONSEQUENCES
Extreme Very High Medium Low Extremely
Low
Highly likely Severe Severe High Major Significant
Likely Severe High Major Significant Moderate
Possible High Major Significant Moderate Low
Unlikely Major Significant Moderate Low Minor
Rare Significant Moderate Low Minor Minor
6

Email to CEO
September 10, 2019
The CEO
NatureCare Products
Brisbane
Respected Sir,
The Risk Management Action Plan has been made with reference to various risks to which
NatureCare Products’ newer locations are exposed to. The risks covered are disaster recovery
plan, manpower deficiency, service quality, underdeveloped operational infrastructure and cost
escalations. Appropriate actions and resources are being provided to eradicate these risks up to
a high extent. Moreover, likelihood, consequences and impact of risks are evaluated as well.
Along with it, monitoring process for risks is deployed.
Seeking your approval on this Risk Management Action Plan so that establishment of retail
outlets in Brisbane, Sydney and Melbourne may be taken place. After due approval, business
can be expanded to new locations by keeping in mind financial commitments and customer
experience.
Thanking You,
Sincerely,
Operations Manager
NatureCare Products
Email to Marketing Management and Office Manage for advising
September 11, 2019
The Marketing Manager & The Office Manager
NatureCare Products
Brisbane
Respected Dignitaries,
The Risk Management Action Plan formulated has been approved by the CEO. The
7

establishment at new offices in Brisbane, Sydney and Melbourne can now be taken place. It is
advised that outcome of the meeting has been in favour of opening of new offices at these
locations so as to increase customer base and market share of NatureCare Products in the
Australia.
Service Quality actions need to be implemented by Marketing Manager by the end of this
week so that customers may be offered with great services at outlets. Moreover, faster services
must be provided for maximising their satisfaction level. Office Manager should be entrusted
to implement operational infrastructure so that everything is synchronized well at this week
only. This will help to deliver best quality goods and services to customers and thus, sales and
resultant profits will be accomplished.
Seeking to attain desirable results from both of you for maximising growth of organization.
Thanking You,
Sincerely,
Operations Manager
NatureCare Products
8

REFERENCES
Charter, M., Gray, C., Clark, T., & Woolman, T. (2017). the role of business in realising
sustainable consumption and production. In System Innovation for Sustainability 1 (pp.
56-79). Routledge.
Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Hazen, B. T., Skipper, J. B., Boone, C. A., & Hill, R. R. (2018). Back in business: Operations
research in support of big data analytics for operations and supply chain
management. Annals of Operations Research, 270(1-2), 201-211.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Luftman, J., Lyytinen, K., & Zvi, T. B. (2017). Enhancing the measurement of information
technology (IT) business alignment and its influence on company performance. Journal
of Information Technology, 32(1), 26-46.
Mansoori, Y., & Lackéus, M. (2019). Comparing effectuation to discovery-driven planning,
prescriptive entrepreneurship, business planning, lean start up, and design thinking. Small
Business Economics, 1-28.
Papke-Shields, K. E., & Boyer-Wright, K. M. (2017). Strategic planning characteristics applied
to project management. International Journal of Project Management, 35(2), 169-179.
Ransbotham, S., Kiron, D., Gerbert, P., & Reeves, M. (2017). Reshaping business with artificial
intelligence: Closing the gap between ambition and action. MIT Sloan Management
Review, 59(1).
Trigeorgis, L., & Reuer, J. J. (2017). Real options theory in strategic management. Strategic
Management Journal, 38(1), 42-63.
9