Manage Risk in Biz Ops Enterprises: Key Risks and Risk Management Strategies

This report discusses the key risks faced by Biz Ops Enterprises and lists them as per the scope of political, economic, legal, social, technological and policy. It also reviews the list of present policies and procedures which relates to the risk context as per the risk management standards.

Running head: MANAGE RISK
Manage Risk
Name of Student:
Name of University:
Author’s Note:

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Table of Contents
Part A...............................................................................................................................................4
Answer to Question 3..................................................................................................................4
Answer to Question 4..................................................................................................................4
a) Political....................................................................................................................................4
b) Economic.................................................................................................................................4
c) Social.......................................................................................................................................4
d) Legal........................................................................................................................................5
e) Technological..........................................................................................................................5
f) Policy.......................................................................................................................................5
Answer to Question 5..................................................................................................................5
Answer to Question 6..................................................................................................................5
Answer to Question 7..................................................................................................................6
Answer to Question 8..................................................................................................................6
Answer to Question 9..................................................................................................................6
Answer to Question 10................................................................................................................7
Answer to Question 11................................................................................................................7
Answer to Question 12................................................................................................................7
Answer to Question 13................................................................................................................8

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Part B...............................................................................................................................................8
Introduction......................................................................................................................................8
Key risks faced by the organization.................................................................................................9
 Political.................................................................................................................................9
 Economic..............................................................................................................................9
 Social..................................................................................................................................10
 Legal...................................................................................................................................10
 Technological.....................................................................................................................10
 Policy..................................................................................................................................11
Review and list of the organization’s current policies and procedures which relates to the current
risk management standards............................................................................................................11
Conclusion.....................................................................................................................................12
Part C.............................................................................................................................................13
List of options commonly used in risk treatment process.............................................................13
The most appropriate options for treating each of the identified risks..........................................14
Proposed action plan to treat the risks including...........................................................................14
-What actions are required.........................................................................................................14
- Who is taking the responsibility..............................................................................................14
- Timelines.................................................................................................................................14
- The monitoring processes........................................................................................................15

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- Proposed folder structure for storing the information relevant to the risk management process
...................................................................................................................................................16
- Key factors in implementing, monitoring and evaluating the risk treatment action plan.......16
References......................................................................................................................................17

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Part A
Answer to Question 3
The main purposed of the risk management is based on evaluating the potential problems
which may be planned and invoked across the life of the project and prevent the project from
adverse impacts throughout the life of the project. This is ensured by planning of the risk
management process, identification of the risk, risk analysis, risk response planning, risk
monitoring planning and implementing additional risk analysiss tools and techniques
(Hub.globalccsinstitute.com. 2018).
Answer to Question 4
The scope of risk management process is explained below as follows:
a) Political
The scope political risk factors are seen with risk management of the political decisions
effecting the business activity.
b) Economic
There may be several risks pertaining to regional instability, Misuse of funds,
Misappropriation of funds, Delegations and Currency fluctuations.
c) Social
There may several instances of the risk which may arise as a result of the community
perceptions.

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d) Legal
The legal scope of the risk management comprises of Fraud, Breach of statute, Breach of
contract, Outsourcing and Negligence.
e) Technological
E-commerce, Obsolescence, Information security, IT infrastructure and Innovation are
identified as some of the main areas of risk associated to technology.
f) Policy
These may include Inadequate safety measures, Noise, Poor safety management,
Contamination, Breach of procedure and Inappropriate project objectives.
Answer to Question 5
The CSF are conducive in attracting new customers for the business. It has been further
identified to be conducive for sustaining a successful dealership with the local suppliers. In
addition to this, the critical success factors are father seen to be based on retaining of the staff
and keeping up with the customer focused training. It is also beneficial in securing financing for
expansion (Omsar.gov.lb 2018).
Answer to Question 6
It is important to review and analyse the existing risk management process, requirements
and procedures before updating to define the constraints and the gaps in the resources,
automation and build effective communication among the departments or certain areas like
technology. This is seen to be conducive for the organization for defining the organizational
policies which govern the processes and policies (Statswiki.unece.org 2018).

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Answer to Question 7
The importance of obtaining the support of the risk management program has been
depicted with protecting the own members, participants and friends form the legal formalities
and improving the acceptability of the organization for public liability and other insurance
facilities. The undertaking of the risk management program is also observed to improve the
acceptability of the decimos making. Lastly, it is also seen to aid the process of better asset
management (Mindtools.com 2018).
Answer to Question 8
The two important nature of the information which a manager may use to research the
risk that may apply to the scope are stated as follows:
 It is important to consider the information which shows the risks which may like occur
in the business
 To know whether the risks are internal or external
Answer to Question 9
The application of the two tools and techniques used for generating the list of risk which
applies to the scope are seen with Brainstorming and Assess the processes. Brainstorming
involves taking the idea of the different peoples like interested parties, financial adviser,
suppliers, accountant and staff. On the other hand, the assessment of the process will consider the
use of inspections. Checklists and flow chart are able to assess the work process (Amadei and
Amadei 2018).

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Answer to Question 10
The five possible options for treating the risks are seen with avoid, reduce the likelihood,
Reduce the consequence, transferring of risk and OHS Treatment. The avoiding of the risk seen
with not proceeding with the project or activity. This may be considered only with the legislative
requirements and business agreements. The reduction of the likelihood of the risk occurrence is
depicted with technical controls, contract conditions, compliance programs, training and quality
control manuals. The reduction in the consequence is seen with contingency planning, relocation
of activity or operation. The transfer of the risk is depicted with the use of contracts, insurance,
partnerships. The OH&S treatment is seen with the elimination, substitution/isolation,
engineering, administrative and personal protective equipment (Ltd 2018).
Answer to Question 11
The four key components of the risk treatment action plan are depicted with identification
of the options, Development of Action Plan, Approval of Action Plan and Implementation of
Action Plan. The identification of the options is determined with the starting or continuing an
activity which is likely to create or maintain the positive outcome. The modification of the
possibility of the risk is seen with increasing the possible beneficial outcomes. The approval
process is seen with the initial management process for ensuring the effective implementation of
the process. In this case, the top management assistance is critical throughout the life of the
project life cycle. The implementation plan is seen with the ongoing support directors of the
organization and senior executives (Business.qld.gov.au 2018).
Answer to Question 12
The four reasons of risk management documentation are listed as follows:

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 Risk management helps the companies in identifying the risk
 Risk management plan is fiscally prudent
 The risk management plan is depicted to protect the resources of the company
 The risk management process is conducive in improving the brand of the company
Answer to Question 13
The activities for the risk identification is observed to focus on the identification of the
risk and placement of the blame. The significant impact of the risk identification is seen to be
involved with the evaluating the performance of the individuals. The evaluating process is
depicted with various process, which involves examining the individual risk elements,
conducting risk assessment and reviewing of the risk management. the evaluation of the risk is
essential to assign the relative importance to the identified risk and determination of the
appropriate management attention. In general, evaluation of the risk is essential in assessment of
the determination of the appropriate management attention. It is also seen to be useful in
aggregating the risks and provide the cover for rolling up the lower risk levels (Enisa.europa.eu
2018).
Part B
Introduction
Biz ops enterprises is recognized as a small company which has grown in a national retail
business specialised in the range of the various types of the exclusive products. It needs to be
further understood that Biz ops are seen to be consisting of more than 150 retails online and
orders for phone across Australia. The business is seen to be wary of the risks as per the horizon.

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This is particularly depicted to be evident in the international, national and the organizational
incidents which have impacted the business.
In terms of the international forefront the organization is seen to be based on the various
types of the functions which ranges from five suppliers of the best-selling range of products. It
needs to be further observed that the top ranged of the produces of the company has received
global condemnation for the use of toxic and banned chemicals for the production procedures.
Event the online sales of the company is depicted to be affected by the impact of the floods. The
report aims to summarize the key risks faced by the organization and list them as per the scope of
the political, economic, legal, social technological and political. In addition to this the second
part of the report will review the list of Biz ops enterprises present policies and procedures which
relates to the risk context as per the risk management standards (Federal Trade Commission
2013).
Key risks faced by the organization
 Political
The political nature of the risk is comprised of the significant national and
international events which has affected the business. These are depicted to be persistent
in the organization for the past three months. In the recent times, there has been raising
concern associated to the political uncertainty, challenges of leadership and several
allegations of corruption. The main form of the political constraints face by Biz ops
enterprises is identified as per the restrictions to the suppliers for selling the top range of
products. These products have received global condemnation on the use of toxic

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chemicals in their materials which is responsible for hampering the environment. In
addition to this, the recent political uncertainties relate to the allegations of corruption
and leadership challenges. This issue is further catalysed by the impeding federal election
which involves the leading customers, investors and businesses to take the approach of
wait and watch (Spacey 2018).
 Economic
As stated earlier the five main suppliers of the top selling range of the products is
seen to be receiving the global condemnation on using the banned and toxic chemicals in
the products which is responsible for polluting the environment with the use of
unsustainable method of production. This is mainly due to the economic and
environmental issues. In addition to this, the Australian consumers have been seen to
spend less due to uncertain global financial situation and rumours of governmental
increase in the income tax. These are seen to likely reduce the disposable incomes in the
households. In terms of the national forefront the Australian consumers are seen with the
trend of spending less pertaining to the uncertainties which exist due to the uncertainties
in the global financial situations (Torrance et al. 2014).
 Social
The occurrence of floods is seen to affect the Asian suppliers in such a way that the
manufacturers and the transporters of the numerous top seller lines has suffered
interruption for the last three months. The social impact is also seen in terms of the
polluting the environment which is having a major social impact in terms of the
increasing harmful consequence for the society. Additionally, the increasing social
media pressure is evident with claims which shows that the major suppliers of Biz Ops’s

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suppliers are depicted to use child labour, sweatshops and other methods which is
responsible for destruction of the environment.
 Legal
As per the given scenario the Federal consumer legislation was seen to be
introduced in 2011. This is seen with the need of all the states to stay up to date with the
policies due to the increased consumer knowledge and the rights related to the product
safety law. This has led to all the states the need to update the legal policy terms and
conditions, especially with the increasing customer knowledge associated to the use of
the rights like product safety law. The legal aspect is also seen with the application of the
uniform WHS laws which was introduced by most of the states. However, without
practicing them on a regular basis the risks won’t be averted.
 Technological
It needs to be also discerned that there are numerous issues incumbent within the
organization associated to the technical factor. There has been increasing instances in the
upsurge in the complaints from the customers related to the online purchasing system. It
needs to also seen that there is an increasing complaint from the customers for the online
purchasing system is mainly due to the glitchy purchasing links. These problems are
often observed in terms of problems with disconnections and goods not delivered on
time. In addition to this, there has been many cases of allegations where the confidential
information of the customer is passed to the other companies. Moreover, the rise in the
pressure from the social media has made many claims where the Biz Ops’s major
suppliers use the sweatshops, manufacturing processes and child labour which is seen to
cause environmental destruction.

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The warehousing/logistics along with the IT systems are seen to be more than 10
years old. The management is depicted to be contemplating with the adoptions and
downsizing of the rigorous budgetary process which is evident among all sections of
organizations. This has led to significant drop in the morale of the staff and increasing
compliant on the working hours.
 Policy
Along with the consideration of the issues, the impending federal elections are
leading investors, customers, business and customers to adopt the wait and watch
approach. The management has been further seen to adopting the policies which relates
to downsizing rigorous budgetary cuts across all the sections of the organization. There
has been significant nature of the drop in the conflicts among the staff and complaints
and this has led to several hours lack of work and lack of training.
Review and list of the organization’s current policies and procedures which relates to the
current risk management standards
The values of the company are identified in form of working in the best interest of the
customers. This is mainly related to the initiates which are depicted as per policies of teamwork,
market identity and growth in the business. The operational plan of the company is also seen to
be committed to avert the risks. The business is dedicated to provide high quality and innovative
products and facilities to customers. It is further aimed at meeting the changing needs of the
customers. The risk identified as per IT is seen to be continuously addressed by the company in

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form of devising the procedures for continuously consulting with the major customers, sales staff
and recruitment agencies.
It needs to be understood that at present Government of Australia and the states/territories
are presently working at harmonizing of the WHS legislation and regulations within Australia.
Despite of this, only goal is depicted to be separated with the present state/ territory and
commonwealth laws. The WHS legislations are seen to be found with the guide which relates to
the commonwealth legislations including the “Work Health and Safety Act 2011”, Work Health
and Safety Regulations and “Work Health and Safety Approved Codes of Practice 2011”.
The risk management devised to prevent an emergency of fire is depicted with the
various forms of categorisation of the risk as per minor incidents, serious incidents and fatality.
The consequences of the minor incident are categorised by the company as per the different
types of the measures shows that in case of a minor injury to the individuals the consequence of
the irks is seen as moderate and risk score is also identified with a medium score. The
consequence of serious risk is seen with a major consequence. The overall risk assessment done
by the company is seen to be based on the categorization done as medium to high.
The current management of risk procedure involves of identification of the new risk and
the appropriate law for the remedy of the same. In addition to this, existing risk are seen to be
monitored and identified and depict the changes identified by the organizations. The new risk
control is addressed by the several procedures which ensures that the risk communicated
appropriately. The risk owners are observed to provide the status of risk and review of the risk
registers.

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The current policies and procedures relates to the legislative framework that typically
originates from the requirement of the acts, regulation, codes of practices and standards. The acts
aim at ensuring that the WHS is achieved effectively in the workplace thereby ensuring that the
staffs are protected under the commonwealth and state/territory law. The act is also aimed to not
affect the operation of the state or territory. The important forms of the objectives of the act are
depicted with ensuring that all the employees are safe and secure at work. It is also aimed to
protect the employees from the risk as a result of their roles. The important nature of the
objectives are depicted with assisting the employees and other persons needing the assistance as
per the obligations under the law. In addition to this, the act is able to provide the remedies when
the obligations are not able to meet the civil remedies.
The different types of the regulations are able to provide the structure for the statutory
framework which were created by the statute and provide the details on the implementation of
the legislation. The various scope of the regulations is seen to cover the details about incident
notifications, health and safety representative election processing. The code of practice is
depicted in terms of the guidance on maintaining a safe workplace. The main code is further seen
to be taken into consideration with the WHS Act 2011 which is a work health and safety
approved code of practice 2011. The aim of the code of WHS is depicted to assist the
organization in interpreting the complete set of previous 27 codes in the Australian workplace
including the associated Australian standards.
The aim of the WHS code of practice 2011 is mainly aimed for the easier following of
the guidance. In addition to this, it is able to consider the guidance for the areas which were
previously excluded. The WHS code refers to the AS/NZ standards where it is necessary for the
technical matters. In addition to this, the code of the practice of the WHS is conducive for

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allowing greater flexibility in achieving the compliance. The important process is seen with the
identifying the hazards, assessment of the risk, control risk, reviewing the controls and keeping
records.
Conclusion
Key risks faced by the organization in terms of the political risk is seen with significant
national and international events which has affected the business. In addition to this, in terms of
the economic risk the five main suppliers of the top selling range of the products is seen to be
receiving the global condemnation on using the banned and toxic chemicals in the products
which is responsible for polluting the environment with the use of unsustainable method of
production. The occurrence of floods is seen to affect the Asian suppliers is seen as the main
social issue. The issues of the technological aspect is further seen with instances in the increase
in the complaints from the customers related to the online purchasing system. , There has been
many cases of allegations where the confidential information of the customer is passed to the
other companies. The management has been further seen to adopting the policies which relates to
downsizing rigorous budgetary cuts across all the sections of the organization. There has been
significant nature of the drop in the conflicts among the staff and complaints and this has led to
several hours lack of work and lack of training. The current policies and procedures relates to the
legislative framework that usually stems from the requirement of the acts, regulation, codes of
practices and standards. The acts aim at ensuring that the WHS is managed effectively in the
workplace thereby ensuring that the employees are protected under the commonwealth and

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state/territory law. The important forms of the objectives of the act are depicted with ensuring
that all the employees are safe and secure at work.
Part C
List of options commonly used in risk treatment process
The main options available to apply in the risk treatment process is seen with avoidance,
reduction, transfer, acceptance and sharing. The list of options commonly includes minor
incident, serious incident and fatality.
The most appropriate options for treating each of the identified risks
The avoidance is considered as avoiding the risk so that there may not be any instance of
risk. The reduction strategy is associated to reduce the overall impact of the risk. The risk
transfer is considered with transferring all or part of the risk to the third party. The risk
acceptance is seen with the taking the initiative of facing the risk. The risk of sharing is
considered with the sharing and distribution of the risk to the multiple organizations or to the
individuals. This is considered with the variety of reasons thereby including the insurance
products along with the self-insurance strategies. The residual risk does not necessarily reduce
the risks to zero. The main strategy to mitigate such a risk is involved with application of the
contingency strategies.
The treatment of risk for the minor incident are based on risk control measures such as
avoiding the risk or mitigating risk. The serious incidents risk is addressed by transferring the
risk. The formulation of the risk procedure is further identified with risk measurement techniques
which involves identification of the new risk and the appropriate law for the remedy of the same.

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Proposed action plan to treat the risks including
-What actions are required
The risk treatment will be conducted by the preparation of a risk assessment matrix for
knowing about the level of risk. This risk should be related to the people, reputation, business
process and systems and financials. Some of the other options may be considered with
Brainstorming, analysis of the other events and assessment of the processes.
- Who is taking the responsibility
The responsibility for mitigating the risk will be considered with the appointed risk
manager under the risk management department. The employees of the Biz Ops are responsible
for application of the risk management and procedures. The management is responsible for
enduring risks and participate in the risk management training.
Measures taken for treating of risk
 Measures taken to avoid the risk
 Measures taken to for Mitigating the risk
 Measures taken to Transferring the risk
 Measures taken to Accepting the risk
The risk control is identified with wide range of options which are seen to include the
wide range of actions, measures and strategies to reduce the risk. The above processes are
necessary to assessing the significances and probability of the risk and assessing how to treat the
risk.

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Risk management procedures
 Identification of the new risk
 Application of appropriate law for the remedy
 Existing risk are seen to be monitored and identified and depict the changes identified
by the organizations
 New risk control is addressed by the several procedures which ensures that the risk
communicated appropriately
 The risk owners are observed to provide the status of risk and review of the risk
registers.
- Timeliness
The proposed duration of the risk assessment is based on a total duration of week 6.
Sequential
Activities/
Period
Week 1 Week 2 Week 3 &4 Week 5 & 6
Establish the
context

Identify the
risks

Assess the risks  
Treat the risks 

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Monitor and
Review

- The monitoring processes
The monitoring process will be undertaken with the documenting the effective
monitoring and review. The risk effectiveness will be measured as per the treatment measures to
ensure the changing circumstances. Reviewing and identification along with the assessment of
the risk factors.
- Planned folder structure for storing the information relevant to the risk management
process
Figure: Folder structure for storing the information
(Source: As created by the author)

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- Main factors in implementing, monitoring and evaluating the risk treatment action plan
Evaluating the risk profile of the organization, including the preferred option of the
inclusion of the risk and taking possible treatment of the risk.
References
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[online] Rmmagazine.com. Available at: http://www.rmmagazine.com/2016/11/01/why-policies-
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