BSBRSK501 Manage Risk: PriceBeat Case Study Analysis and Solutions

This case study provides a comprehensive analysis of risk management at PriceBeat, identifying internal and external stakeholders, conducting PEST and SWOT analyses, and analyzing various risks related to finance, human resources, water wastage, security, marketing, and OHS. It outlines the purpose and key elements of risk management, legislative and regulatory context, and organizational policies, procedures, and processes required for effective risk management. The study also details the likelihood and consequences of identified risks, proposing a risk treatment plan involving communication, documentation, and monitoring. The assignment concludes by emphasizing the importance of risk management in aligning strategic and operational tasks with organizational objectives, highlighting the need for continuous review and analysis of risk management plans. Desklib offers similar solved assignments and resources for students.

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

1MANAGE RISK
Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Scope of Risk...............................................................................................................................3
Risk Management Objectives and Success Factors.....................................................................3
Internal and External Stakeholders..............................................................................................4
PEST Analysis.............................................................................................................................4
SWOT Analysis...........................................................................................................................5
Analysis of Risk...........................................................................................................................5
Purpose and Key Elements of Risk Management........................................................................7
Legislative and Regulatory Context............................................................................................7
Organizational Policies, Procedures and Processes.....................................................................7
Task 2...............................................................................................................................................8
Likelihood of Risks......................................................................................................................8
Risk Consequences......................................................................................................................8
Risk Treatment Plan....................................................................................................................9
Communication of Risk Treatment Plan.....................................................................................9
Documentation.............................................................................................................................9
Monitoring...................................................................................................................................9

2MANAGE RISK
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

3MANAGE RISK
Introduction
In today’s business world, proper management of risk is considered as a vital aspect for
gaining the business success. Risk management refers to the process to identify, assess and
control the threat to the capital and earnings of the capital. In organization, the presence of
variety of sources can be seen for the risks; some of them are human resource related risk, risk
related to the financial operations, supply chain risks, OHS risk, risk related to compliance and
others. Thus, the companies are needed to take into consideration all of these risks while
developing risk management plan (Pritchard and PMP 2014).
Task 1
Scope of Risk
The scope of risk is the process to set the context of risk management in the organizations
and both the internal as well as external context needs to be considered. The information of the
case study indicates towards the inefficiency in the internal control related to monitoring
recording and cash handling. At the same time, lack of efficiency can be seen in different aspects
like OHS, financial aspects and others. All these aspects together provide the scope for risk
management in PriceBeat.
Risk Management Objectives and Success Factors
In PriceBeat, the main objective of risk management is to identify the risk areas in the
business operations of the companies, to develop the risk management plan after analyzing the
identified business risks and to monitor them to get the results. In this context, the main success
factor for the risk management of PriceBeat is the analysis of the internal as well as external

4MANAGE RISK
environment of the company as the identification of the risks largely depends on them (Lam
2014).
Internal and External Stakeholders
Internal Stakeholders
Name Role Issues or Concerns
Management
Employees
It is the role of the
management of PriceBeat to
develop the risk management
plan
Employees are required to
play their part in the risk
management process
effectively (Wolke 2017).
The managers are facing
difficulties in conducting and
attending meetings due to long
distance.
External Stakeholders
Name Role Issues or Concerns
Customers
Government
Customers are needed to
cooperate with the company in
managing the external risks of
the company.
PriceBeat is needed to comply
with all the laws and
legislations introduced by the
Government.
The customers are not with the
products of the company.
PriceBeat has major
compliance issues with the
regulations of the government
(Wolke 2017).
PEST Analysis
Political: As per the provided case study, the company has majorly failed in complying with the
major legislative requirements like OHS, water wastage, lack of policies and others.

5MANAGE RISK
Economic: There has not been any major economic progress in PriceBeat as the company has
failed to open more stores.
Social: The increasing amount of population in the area due to the amount of retirees is a major
social factor.
Technological: PriceBeat will be able in using more efficient ERP system due to NBN.
SWOT Analysis
Strengths Weaknesses
 The location of the store of PriceBeat is
strength as it provides easy access of
the stores to the customers.
 The long distance between Taralgon to
Melbourne is a weakness.
 Ineffective ERP system is another
weakness.
 Lack of written procedures is a major
weakness.
 Another weakness is the inability of the
company to attract the customers.
 Lack of established process to deal with
the issues of OHS is a weakness.
Opportunities Threats
 Opening of new stores provides the
company with major expansion
opportunity for PriceBeat.
 Lack of internal control is a threat.
 Non-compliance with the required
standards can create threat for the
company.
Analysis of Risk
In PriceBeat, the risk analysis will be done with the help of checklists. The following
discussion shows the risk analysis with the help of a checklist:

6MANAGE RISK
Description Risk Present Specific Risks
Financial Risk  o Ineffectiveness of ERP system can
lead to delay for the customers.
o Lack of everyday banking creates
the risk of theft of cash.
o Lack of cash registration can lead to
the risk of cash theft.
o Lack of correct computation of
superannuation increases the risks of
wrong payment of wages (Bromiley
et al. 2015).
Human Resource Risk  o As separate employees are
responsible for payment, inventory
and delivery, it can lead to the risk of
lack of coordination.
Risk Related to the Wastage
of Water
 o The absence of double flush system
leads to the risk of the wastage of
water.
Security Risk  o Lack of security increases the risk of
break-ins.
o The lack of computer security
increases the risk of data theft
(Olson and Wu 2015).
Marketing Risk  o Lack of sales promotion lead to the
marketing risk in the company.
OHS Risk  o Lack of established process in OHS
increases the risk of injury

7MANAGE RISK
Purpose and Key Elements of Risk Management
In PriceBeat, the main purpose for the development of the risk management standards is
to make the company to align all the strategic management and operational tasks along with the
functions and processes with the risk management objectives of the organization (Brustbauer
2016).
The current risk management standards of PriceBeat have four major elements. The first
element involves in the identification of the hazards in the organization that can harm the
business operation of the company. The next element involves in the identification of the parties
or stakeholders that can be affected with the risks. The next element involves in the assessment
of the identified risks so that actions can be taken to reduce them. The last element involves in
recording the major findings from the risks management process (Brustbauer 2016).
Legislative and Regulatory Context
PriceBeat is needed to comply with all the required legislative and regulatory
requirements in the development of risk management strategy. The legislation and regulatory
requirements for risk management are legislations related to disaster, emergencies, land use
planning, business permits, safety standards, operating procedures, emergency procedures,
manufacturing procedures and others (Hopkin 2017).
Organizational Policies, Procedures and Processes
PriceBeat is needed to develop the required policies, procedures and processes for the
purpose of risk management. Some of the required procedures, policies and processes are
precaution of equipments related to safety training and inspection; the maintenance of detailed
records; screening and hiring of the employees; development of contingency plan for emergency

8MANAGE RISK
cases; ethics in workplace; reporting of incidents, accident reporting procedures and others
(Hopkin 2017).
Task 2
Likelihood of Risks
Risks Low Medium High Extreme
Financial Risk 
Human Resource Risk 
Risk Related to the Wastage of Water 
Security Risk 
Marketing Risk 
OHS Risk 
Risk Consequences
It needs to be mentioned that these six types of risks have different consequences. The
financial risks will have major consequence on PriceBeat as there can be major thefts of cash.
The consequence of human resource risk will make the employees inefficient. PriceBeat can
suffer from major legislative consequences from the government due to the presence of the risk
of wastage of water. The consequence of security risk will lea d to the break-in in the company
and the theft of important data. Development of ineffective marketing strategy will be the
consequences of marketing risk. The employees will have to suffer from major health issues due
to the OHS risk (Burtonshaw-Gunn 2017).

9MANAGE RISK
Risk Treatment Plan
There will be eight steps in the risk treatment plan. The first step will be the
implementation of risk action plan. The second step will be the communication of plan. The third
step will be seeking support from senior management. The next step will be communication with
internal as well as external stakeholders. Documentation of the risk management plan will be te
next step. To provide training is the last process (Sadgrove 2016).
Communication of Risk Treatment Plan
Ensuring the effective communication of risk treatment plan is an essential part in the risk
management process of the company. In this process, the company is required to distinguish the
stakeholders in internal as well as external stakeholders. After that, PriceBeat is required to
develop different communication strategies and tools for both the internal as well as external
stakeholders. For example, management can communicate the risk treatment plan with the
internal stakeholders by conducting meetings (Marcelino-Sádaba et al. 2014).
Documentation
After this, it is necessary for PriceBeat to make the proper documentation of the risk
assessment process. For this reason, PriceBeat is needed to develop a detailed risk management
report where the company will record all the information as well as findings of the risk
management process (Sadgrove 2016).
Monitoring
Lastly, PriceBeat is needed to organize various aspects like review of risks, team
meetings, progress reports and others to monitor the progress of the risk assessment process
(Burtonshaw-Gunn 2017).

10MANAGE RISK
Conclusion
From the above discussion, it can be observed that the companies have to consider
different stages at the time of the development of the risk management plan. Two major steps in
the risk management process are review of the risk management plan and the analysis of the risk
management plan. The identification as well as analysis of the risks is done in the review part.
After that, the development, implementation and monitoring the risk management plan is done in
the next step.

11MANAGE RISK
References
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management:
Review, critique, and research directions. Long range planning, 48(4), pp.265-276.
Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural
model. International Small Business Journal, 34(1), pp.70-85.
Burtonshaw-Gunn, S.A., 2017. Risk and financial management in construction. Routledge.
Hopkin, P., 2017. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Lam, J., 2014. Enterprise risk management: from incentives to controls. John Wiley & Sons.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A.M.E. and Villanueva, P., 2014. Project
risk management methodology for small firms. International journal of project
management, 32(2), pp.327-340.
Olson, D.L. and Wu, D.D., 2015. Enterprise risk management(Vol. 3). World Scientific
Publishing Company.
Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. CRC Press.
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Wolke, T., 2017. Risk Management. Walter de Gruyter GmbH & Co KG.