Risk Management Process for Global Star Enterprises

This article discusses the risk management process for Global Star Enterprises in the context of AS/NZ ISO 31000:2009 Standard. It also explores the company's values, ethics, mission, and expansion strategy. The article covers the research methods and parties involved in scenario planning and treatment of risks.

Running head: Manage Risk
Manage Risk

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Table of Contents
Ans 1...........................................................................................................................................................2
Ans 2...........................................................................................................................................................2
Ans3............................................................................................................................................................3
Ans 4...........................................................................................................................................................3
Ans 5...........................................................................................................................................................3
Ans. 6..........................................................................................................................................................5
Ans 7...........................................................................................................................................................6
Ans 8...........................................................................................................................................................6
Ans 9...........................................................................................................................................................6
Ans .10........................................................................................................................................................7
Ans 12.........................................................................................................................................................8
Ans 13.........................................................................................................................................................8
Ans 14.........................................................................................................................................................9
Ans 15.........................................................................................................................................................9
Ans 16.......................................................................................................................................................10
Ans 17.......................................................................................................................................................11
Ans 18.......................................................................................................................................................11
Ans 19.......................................................................................................................................................15
Ans. 20......................................................................................................................................................17
Ans 21.......................................................................................................................................................21
Ans 22.......................................................................................................................................................21
References.................................................................................................................................................22

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Ans 1. The steps involved in the risk management process of the GSE in the context of AS/NZ
ISO 31000:2009 Standard are as follows (McNeil, Frey & Embrechts, 2015):
1. Establishing the goal and context: In GSE, it is developed with the help of reviewing
the organisation’s corporate documents and the risk management plans and
stakeholder analysis.
2. Risk Identification: In GSE, it is identified by analysing the problems as they arise
and using the feed forward control method to evade the problems.
3. Risk Analysis: In GSE, the risk is registered on a template, which is used for
administering and surveillance purpose.
4. Risk Evaluation: In GSE, the possibility of risk and its effect is contemplated, thereby
analysing the prime concern of risk and their treatment.
5. Risk Treatment: In GSE, a combination of various methods for risk treatment is
adopted according to the cost benefit analysis.
6. Risk Monitoring and Review: In GSE, it is included in all the policies and action
plans of the company and they are reviewed on regular basis for their successful
implementation.
7. Communicating and Consulting: In GSE, the focus is on the objectives relating to
managing the risks, setting manageable targets and collection of useful data to
ascertain actual performance. (Economic Times, 2017).
Ans 2. The GSE’s values are (Mathooko, 2013):
1. The employees must not use their status and details acquired as a result of their
designation to mistreat the organisation and must adhere to all the laws and regulations
both in letter and spirit.
2. The employees should safeguard the estate and make sure that it is utilized in an effective
way.
The GSE’s ethics are (Kumasey, Bawole, Hossain & Ibrahim, 2016):
1. All the employees should follow the principles of righteousness and honesty while
performing their duties and responsibilities in the organisation.

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2. The environment within the organisation is healthy and of mutual faith .It acknowledges
the integrity of the personnel and right to a workplace free from exploitation.
3. The policy of whistle blowing is adopted and the misconduct and the frauds are reported
to the CEO.
The GSE’s mission is (Papulova, 2014, pp .12):
All its employees should be environmentally aware and economically feasible while supplying
goods and amenities to the customers which satisfy their needs fully.
Ans3. The company aims at expanding its market into South East Asia and product and
showroom expansion strategy and installation, for which, the new project team is proposed to
be established in Singapore, where there is an opportunity to target the budget sensitive
companies. If the reserves used for expansion are inadequate, then it shall be opting for its listing
on the Australian stock exchange, which is a time consuming process. So, in this context, it has
to implement the plan comprising of risk arising from budget constraints, i.e. risk identification,
analysis, treatment, monitoring, review, communication and consulting (OECD, 2014).
Ans4. As the risk management process defines the identification of risk at its initial stage and
strategizes its response and supervises its execution. (Pritchard, PMP, PMI-RMP & EVP,
2014).As the Sales Manager at the GSE South Australian branch, I would implement the risk
management plan by identifying the risk posed by new competitor in the market. The fact that in
South Australia, there are many competitors who sell similar products at low prices and better
quality can pose a threat to the firm. So a risk management plan comprising of processes which
would minimize the cost of production and increase the sales thereby protecting the interests of
the company (“The National Archives .Risk Assessment Handbook,”2014).
Ans 5. (Schmeer, 2017) STAKEHOLDER AGENDA ANALYSIS TEMPLATE

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Our Goal: To be a preferable organization for all and to be economically feasible while
supplying goods and amenities to the customers which satisfy their needs fully.
Stakeholder Stakeholder’s
agenda for Agency
Strengths in
meeting agenda
Vulnerability resulting from
the agenda
Managers
Innovation and
growth of the
company.
Expansion of the
business
internationally.
The political and legal policies
of the client country along
with technological
Shareholders
Good Capital
growth, regular
flow of income and
the continuity of
the business.
Increased
profitability of the
company.
If the capital growth increases,
the shareholders will anticipate
better returns from the
business.
Suppliers
The suppliers
should be paid
timely.
Timely payment to
the creditors will
result in
undisturbed
distribution of
goods.
The postponement in the
payment to increase the
liquidity may result in
disruption in the supply of
goods.
Customers
The organization is
expected to be
customer centric.
Customer
satisfaction is
achieved through
supply of value for
products.
Any effort to deliver best
quality products may result in
increased prices leading to
consumer discontentment.

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Ans. 6. (Bonnici,S.,T. 2015) Political impact:
1. There can be constraints on doing trade with some nations which should be included in
the plan.
2. The taxation policy of the government can also be explained in the plan.
Economic impact:
1. The organisations prefer to deal with those of developing countries due to low labour
costs.
2. The world economy is coming out of recession, so the market is insecure for international
trade.
Social impact:
1. Healthy Workplaces are important for long term accomplishment of the organisation.
2. The society has become more aware of the environment and prefers the products
manufactured out of renewable energy sources.
Legal impact:
1. There are strict provisions for violating the safety measures.
2. There are strict penalties for violating the environmental policies.
Technological Impact:
1. The increased use of renewable energy sources to lessen the use of fossil fuels.
2. The government is providing subsidies for using renewable energy sources.
Ans 7. (Insurance Commission of Western Australia, 2016)
SWOT ANALYSIS

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SWOT Analysis: Global Star Enterprises
Strengths Weaknesses
Reliable Quality
Experienced Executive Board.
Low labour cost as compared to competitors.
Outstanding hand carving skills of the
workforce.
Lack of accessibility to the customers.
Lack of funds.
High import duty on timber and import of
wood.
Insufficient wood seasoning arrangement.
Opportunities Threats
Growth in the market.
Customer Reliability.
Expansion of products.
Elevation of terrestrial markets.
Competitors in the market.
Change in the policies of the government.
Change in the taste of the customers.
New distribution channels.
Ans 8. (Cooper, 2013, pp. 5) The company aims at making consumer centric policies and
supplies economically feasible yet best quality products to the customer’s .It should endeavour to
outperform as the foremost authorization over its area of operation in spite of the competition. In
spite of the competition, customers will demand best solutions for their certain necessities. So, it
should manufacture USP to attract its customers.
Ans 9. (University of Turku, 2016)
1. For proper execution of the action plan, a team of professionals should be formed to supervise
its implementation.
2. The cost and benefits associated with the implementation of the plan should be strictly
monitored.
3. Proper treatment strategies of the risk implement plan should be executed.

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Ans .10 (Australian Government .Department of Finance, 2016)
1. The middle level management can be communicated through meetings and e-mails about
the expansion strategy and the risks associated with it
2. The shareholders should be invited to discuss about the plan and their suggestions should
be implemented for its better performance, through conference calls and informal means
of communications.
3. The risk and management committee should be invited for reviews pertaining to the plan,
through voice –mails and electronic communication.
4. The employees should be invited for participation through formal means like
meetings ,conference calls and informal means like lunch meetings and voice mails for
the execution of the plan as human resources are a crucial part of the organisation
Ans 11
Name of the party Methods for their invitation Reasons for their invitation
Marketing Manager Through electronic
communication
He will explain the threats
related to introduction of new
competitors in the market.
Finance Manager Through electronic
communication
He will explain the dangers
related to maintaining the
appropriate debt equity ratio.
I.T. Manager Through electronic
communication
He will explain the threats
related to the technology
obsolescence.
Sales Manager Through electronic
communication
He will explain the danger
posed by competitors resulting
in decreased volume of sales.
Administration Manager Through electronic
communication
He will explain the threats
related to the internal
mismanagement.

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Ans12. The four research methods used for risk identification are as follows:
1. By conducting the Brainstorming and workshop sessions, the potential risk can be
identified.
2. The analysis of the relevant past research reports are of great help in identifying the
risk.
3. By applying a fish bone or Ishikawa diagram, the risks can be identified.
4. Scenario planning helps to analyse the future risks for a specific plan in accordance to
different situations (The Society of Actuaries in Ireland [IE], 2015).
Ans 13. The four parties that can be consulted with reference to ‘scenario planning’ technique
is:
1. The Risk Management Committee can be consulted for assessing the probable risks on
the organisation.
2. The Information Technology Expert can be consulted for analysing the risks relating to
technological obsolescence.
3. The Sales department should be consulted regarding the emergence of the new
competitors and risk posed by them with regards to decreased sales and low productivity
of the company.
4. The Marketing department should be consulted regarding the publicity and marketing of
the company’s products and organising events to make it known to the general public.
Two Examples of Scenario Planning:
1. As an Information Technology Expert to of the firm, I would review the current
technologies used by the company in manufacturing the products. Out-dated technology
can lead to less production thereby posing a threat to the firm’s survival in the market.
2. Also, as the Marketing Expert, I would review the company’s policies regarding the
marketing strategies adopted by the organisation. Arising of new competitors can affect
the sales of the firm, so the policies should be designed accordingly to neutralize the
effect of competitors on the firm.

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Ans 14.
Nature of Risk
Probabilit
y of risk
Level of
risk
Reduction of Sales due
to competition. 5 extreme
Introduction of a new
competitor in the
market. 3 high
Critical system failure. 3 high
Death or severe injuries
to the labour due to
accidents. 5 extreme
Change in the political
policies. 3 high
Ans 15.
Nature of Risk Consequence of risk
Probability of
risk Level of risk
Reduction of Sales
due to competition.
The profit and revenue would be
decreased. 5 extreme
Introduction of a
new competitor in
the market.
Reduction in sales and hence the
decrease in revenue and profit
margin. 3 high
Critical system
failure.
It would result in the disruption of
the operations. 3 high
Death or severe Labour aggression and strike. 5 extreme

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injuries to the labour
due to accidents.
Change in the
political policies.
Increase in the tax rate or import
duty. 3 high
Ans 16.
Ans 17.
Nature of Risk
Consequence of
risk Treatment of Risk
Reduction of Sales
due to competition.
The profit and
revenue would be
decreased.
Manufacturing of USP
to attract its customers.
Nature of Risk Consequence of risk
Priority of
risk
Reduction of Sales
due to competition.
The profit and
revenue would be
decreased. Major
Introduction of a
new competitor in
the market.
Reduction in sales
and hence the
decrease in revenue
and profit margin. Moderate
Critical system
failure.
It would result in
the disruption of the
operations. Major
Death or severe
injuries to the
labour due to
accidents.
Labour aggression
and strike.
Catastrophic
Change in the
political policies.
Increase in the tax
rate or import duty. Minor

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Introduction of a
new competitor in
the market.
Reduction in sales
and hence the
decrease in revenue
and profit margin.
It should distinguish its
product so that it meets
the specific needs of its
customers.
Critical system
failure.
It would result in
the disruption of
the operations.
It requires consideration
of the senior
management.
Death or severe
injuries to the
labour due to
accidents.
Labour aggression
and strike. workmen compensation
insurance
Change in the
political policies.
Increase in the tax
rate or import duty.
The tax expenses can be
mitigated by adapting
cost effective strategies.
Ans 18.

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Risk Reference
Potenti
al
Treatm
ent
Option
s
Impact
s
Issues
and
risks
of
imple
mentin
g the
treatm
ent on
operati
ons
Is the
Treat
ment
to be
Imple
mente
d
(Y/N)
Risk Assessment
Respon
sible
Person
Timeta
ble
for
implem
entation
Monit
oring
strateg
ies to
measu
re
effecti
veness
of
Risk
Treat
ments
Repor
ting
Strate
gies
to
report
on
key
aspec
ts of
risk
and
the
impac
t to
GSE
Probability
Severity
Impact
Reduc
tion
of
Sales
due to
comp
etition
.
Manuf
acturin
g of
USP to
attract
its
custom
ers.
Traini
ng of
the
staff
and
cash
outflo
w.
Y
5 Major
The
profit
and
reven
ue
woul
d be
decre
ased.
Sales
Depart
ment
2
months
timely
check
on the
produc
tion
and
sales
mecha
nism
The
Sales
Depar
tment
will
conve
y the
strate
gies
to the
board
.
It
should
disting
uish its
product
Adopti
ng
new
techno
logies
to
develo
Y Redu
ction
in
sales
and
henc
e the
Market
ing
Depart
ment
15 days Strict
proced
ures
would
be
adopte
d in
The
Mark
eting
Depar
tment
will
report

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Ans 19.
PROJECT COMMUNICATIONS MANAGEMENT PLAN TEMPLATE
Project title Version Date File name
Project sponsor Project manager Project client
1. STAKEHOLDER COMMUNICATION REQUIREMENTS
To inform all the stakeholders regarding the policies and the procedures related to risk
management, adopted by the organization.
2. COMMUNICATIONS SUMMARY

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Stakeholder What information? When? How?
(format/medium)
Who is
responsible?
Shareholder
s
Growth of the
company
Annual general
meeting Annual report The Board
Customers Value for money
goods
While dealing
with them Advertisement The Sales
department
Government Compliance with the
rules and regulations
At the time of
compliance
electronic
communication The Board
Employees Risk prevention plans
and their methods
Through
trainings
electronic
communication
The middle
management
Managers Monitoring of their
implementation
Through
workshops
electronic
communication
The higher
management
3. COMMENTS/GUIDELINES/COMMUNICATION STANDARDS
Through newsletters, trainings, workshops and electronic communications.
4. ESCALATION PROCEDURES FOR RESOLVING ISSUES
Through monitoring and continuous communication with the stakeholders.
5. GLOSSARY OF PROJECT TERMINOLOGY
Word Definition/interpretation
Risk Prevention Plans Plans implemented for prevention of risk

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Word Definition/interpretation
Compliance The execution of the rules made by the government.
6. REVISION PROCEDURES FOR THIS DOCUMENT
Through the communication with the stakeholders, any changes if required will be implementing
Ans. 20
PROJECT RISK REGISTER
Proj
ect
Title
:
Project
ID:
Pro
ject
Dat
es:
Proj
ect
Spo
nsor
:
Project
Manag
er:
Pro
ject
Cli
ent:
Risk
ID Risk Details Cat
ego
Root
Cause/s
Trigg
ers
Se
ver
Pro
bab
Imp
act
Potentia
l
Stat
us
Respo
nsible

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ry ity ilit
y
Respons
es Person
1
Reduction of
Sales due to
competition.
Stra
tegi
c
Ris
ks
Change
in the
technol
ogy
which
is cost
effectiv
e.
Intro
ducti
on of
new
techn
olog
y in
the
mark
et. ext
re
me
5
The
prof
it
and
reve
nue
wou
ld
be
decr
ease
d.
timely
check
on the
producti
on
mechani
sm
In
sur
veil
lan
ce
Sales
Depart
ment
2 Introduction
of a new
competitor in
the market.
Stra
tegi
c
Ris
ks
Use of
new
equipm
ents
which
are cost
effectiv
e and
produc
e more
product
s by the
compet
itor.
Com
petit
or
uses
more
inno
vativ
e
prod
ucts.
M
od
era
te
3 Red
ucti
on
in
sale
s
and
henc
e the
decr
ease
in
reve
nue
and
prof
it
Strict
procedu
res
would
be
adopted
in
context
of
develop
ing the
new
product.
Act
ive
Market
ing
Depart
ment

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mar
gin.
3
Critical
system
failure.
Pro
ced
ural
Ris
ks
Lack of
mainte
nance
of
machin
ery.
Poor
mana
geme
nt.
M
od
era
te
3
It
wou
ld
resu
lt in
the
disr
upti
on
of
the
oper
atio
ns.
Substitu
tes for
the
failed
process
es
/people.
Act
ive
Admin
istrativ
e
Depart
ment.

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4
Death or
severe
injuries to the
labour due to
accidents.
Oth
er
Ris
ks
neglige
nce of
the
manage
ment
Lack
of
awar
eness
amon
g the
labor
s
regar
ding
the
safet
y
proce
dures
.
Ca
tas
tro
phi
c
5 Lab
or
aggr
essi
on
and
strik
e
Proper
training
of the
staff.
Act
ive
Admin
istrativ
e
Depart
ment
5
Change in the
political
policies.
Oth
er
Ris
ks
Change
in the
govern
ment
policies
Impo
sing
of
more
taxes
by
the
gove
rnme
nt.
Mi
nor 3
Incr
ease
in
the
tax
rate
or
imp
ort
duty
Strict
vigilanc
e to
check if
the
policies
are
implem
ented.
Act
ive
Financ
e
Depart
ment

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Ans 21.
The action plan can be implemented by (The Official Website for the State of New Jersy,
2015):
1. By conducting trainings and workshops
2. Covering the information in the company’s newsletter and website.
The plan can be monitored by:
1. Through whistle blowing mechanism.
2. Continuous reporting of its implementation to the board.
Ans 22.
The risk can be evaluated by ensuring that:
1. The implementation plan is supervised regularly by the risk management team.
2. Implementing the strategies to measure efficiency of risk treatment.
3. The plan should be in continuous surveillance regarding its execution within the deadline.
4. Through daily reporting by the departments.

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References
Australian Government .Department of Finance (2016).Communicating Risk .Retrieved from
https://www.finance.gov.au/sites/default/files/Communicating-Risk.pdf.
Bonnici,S.,T (2015). PEST analysis. Wiley Encyclopedia of Management. John Wiley &
Sons,Ltd.
Cooper, R. G. (2013). PDMA handbook of new product development. third
edition.Hoboken ,New Jersy ,John Wiley & Sons,Inc.5.
Economic times (2017).Steps involved in the risk management process. Retrieved from
https://economictimes.indiatimes.com/definition/risk-management
Insurance Commission of Western Australia(2016),Risk Cover. Retreived from
https://www.icwa.wa.gov.au/__data/assets/pdf_file/0016/7117/Risk-Management-
Strategic-Management-Framework.pdf
Kumasey, A. S., Bawole, J. N., Hossain, F., & Ibrahim, M. (2016). 3Ethics, values and
development management. Development Management: Theory and Practice.
Mathooko, J. M. (2013). Leadership and organizational ethics: the three dimensional African
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McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative risk management: Concepts,
techniques and tools. revised edition. Princeton, New Jersey: Princeton university press.
OECD(2014). Corporate Governance Risk Management and Corporate Governance. OECD
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governance.pdf.
Papulova, J.(2014). The Significance of Vision and Mission Development for Enterprises in
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edition. Boca Raton: CRC Press
Schmeer,K.(2017) .Stakeholder Analysis Guidelines. Retrieved from
http://www.who.int/workforcealliance/knowledge/toolkit/33.pdf

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The National Archives .Risk Assessment Handbook. (2014).Retrieved from
http://www.nationalarchives.gov.uk/documents/information-management/risk-
assessment-handbook.pdf.
The Official Website for the State of New Jersy (2015). Risk Management Implementation Plan.
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–2016.Retrieved from
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