Risk Management, Risk Assessment
Added on -2021-02-21
| 22 pages| 5233 words| 91 views
Trusted by 2+ million users,
1000+ happy students everyday
Showing pages 1 to 6 of 22 pages
Nerds Case Study
EXECUTIVE SUMMARYRisk assessment has been used by the individuals or the organisations to assess andmanage the possible risks which can affect the operations. The report has discussed several riskassessment and management tools which must be used by the bushiness organisations. The studyhas also evaluated risk recovery tools so that risk exposure can be minimised. It has helped toanalyse various tools and their implications in context of given case study of Nerds Galore.
TABLE OF CONTENTSEXECUTIVE SUMMARY.............................................................................................................2INTRODUCTION...........................................................................................................................1RISK MANAGEMENT AND ASSESSMENT .............................................................................1Risk definition..............................................................................................................................1Attitude towards risk....................................................................................................................3Risk handling ..............................................................................................................................4Minimising risk exposure ...........................................................................................................7Risk recovery.............................................................................................................................10Learnings from risk management .............................................................................................11CONCLUSION .............................................................................................................................12REFERENCES..............................................................................................................................13APPENDIX ...................................................................................................................................15List of tools used .......................................................................................................................15
INTRODUCTIONHuman resource management is defined as the management approach which aims atmanaging human resources or employees of the organisation. The operational efficiency of theorganisation greatly depends upon the efficiency and performance of its human resources. Thus,it is very essential for the organisation to effectively manage its organisational culture and humanresources. The lack of effective human resources and human resource culture can increase therisk of operational inefficiency (Brink, 2017). The behaviour and skill of the human resources isdirectly reflected to the customers and thus it plays a significant role in the brand managementand success of the organisation. However, in the competitive market and business environment it has become verychallenging for the organisations to retain the talented and skilled employees. The failure toemployee retention can impose several risks and business failure for the organisation. In order tosustain the long term growth it is recommended that organisation must perform the riskassessment so that possible business risk and threats can be analysed. The report will use the casestudy of Nerds Galore (NG) and will perform a risk assessment and management so that itshuman resource culture can be improved and the performance of the organisation can beimproved. RISK MANAGEMENT AND ASSESSMENT Risk definitionIt is very important for the Nerds Galore to have complete and well defined knowledge ofthe possible risk and threats which can affect the employee retention and poor human resourcemanagement within organisation. The clarity in the risk definition is very essential as it helpsorganisation to be aware of the risk which can harm the operational efficiency of the company. Tool 2: Consensus gaining for risk: One of the most common tool which can be used by Nerds Galore to define possible riskfor its business is consensus gaining. The organisation must conduct regular audit andmonitoring so that it can identify the possible risk. For instance the employee retention rate ofthe organisation is very low. Thus, Nerds Galore must conduct an internal audit that what are thepossible reasons which makes employees unsatisfied. The regular interaction with the employeescan help to solve this issue (Wu, Chen and Olson, 2014). It has been also observed that NerdsGalore is not providing the good salary to its employees as compare to its other competitors.1
Thus, this can be one of the possible risk that its talented and technically skilled employees mayleave the company and prefer other organisations. Such approaches can be harmful for theoperational continuity of the organisation. Another possible risk which is leading to highlydissatisfaction among employees is that technical workers are not providing their time to theircore job. Instead, they are just moving from one place to other for customer service. Thus, thelack of effective work as per the job role can also encourage employees to pay less attention totheir job role (Reinhold, Järvis and Tint, 2015). This risk is another factor which is causingcustomer highly unsatisfied with the services of the company. Tool 11:SLOT analysis: The evaluation of the own strength and weakness can help to underpin the possible riskfactors which can create devastating impact upon the overall business. The SLOT analysis of theorganisation is as follows: Strength: One of the key strength of the organisation is that it has good brand reputation amongits customers. It helps company to easily attract the talented human resources. The brand nameof the company is sufficient to gain the attention of the talented individuals. Another advantageof the organisation is that it has highly potential employees who have great technical expertise. Limitation/weakness: As per the given case situation the organisation has very loweredflexibility in its working environment. This is one of the key reason which leads todissatisfaction among employees and most of the departures of the employees. Anotherlimitation of Nerds Galore lies in the fact that the existing management is not capable toidentify the existing potential and skills of the employees. Due to this reason many technicalexperts are appointed in different work role. The inability to identify the actual skills andcapabilities of the employees is making huge differences in the performance and goalachievements of the company. Opportunities: By managing the risk associated with the human resources and service qualityorganisation will be able to explore huge growth opportunities. The improved skills of the staffmembers will reduce the customer's complain regarding quality services (Sterne and et.al.,2016). Thus, company will be able to make new consumers and to expand its business. With thenecessary improvements Nerds Galore will also be able to lower its operational expenses onemployee turnover. This expenditure can be used to initiate new projects regarding businessexpansion and improved customer satisfaction. 2
Threats: There are several possible threats which may lead to crisis for the organisation. Ifcompany will not focus on quality recruitment and placement of employees in suitable workrole then the overall work efficiency may fall and it will affect the profitability. Further thedissatisfaction among team members regarding job role can also drive them to quit the job.Thus, there are high possibilities that the staff members with huge internal knowledge may alsolost (Arbon, 2014). In long term the lack of technical experts can hinder the operationalcontinuity of the business. Attitude towards riskThe perspective of the organisation plays significant role in assessment and managementof the risk. Thus, for the minimum exposure to the risk it is essential for Nerds Galore to have asuitable attitude towards risk. Instead of neglecting risk and waiting for occurrence of risk it isbest for the organisation to perform pre-identification of risk so that risk damages can beminimised. Tool 1:Personal risk spectrum: It is essential for the organisation to assess the impact of unexpected and sudden eventswhich can influence the operational and financial consequences. At present the overall customersatisfaction has been reduced from the last few years. However, the due to multilayer contractand majority of small business clients there is no impact on the revenue collection. If thetechnical experts of the organisation are not managed properly then it is possible that thecustomer services may completely get blocked (De Boeck and et,al., 2015). It will create hugelosses to the organisation brand value. Further it is the responsibility of the organisation to ensure the health and safety of itsemployees. In this regard the lack of effective policies and regulations will not only lead to legaltroubles but also affect the customer and employee relations. In the spectrum the vulnerabilityand impact of such risks is very high. Due to mismanaged work all technical experts are alwaysin hurry and thus they neglect the safety considerations (Choi, Chan and Yue, 2016). Theuncompetitive productivity of the staff members is also one of the risk. However, within NerdsGalore it has the least probability as company is investing good amount in the training andrecruitment process. However, the motivation, organisational environment and work culture andsafety can influence the employee retention at the work place (Tenenhaus-Aziza and Ellouze,3
Found this document preview useful?
You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss
Paid Plans
Free Plan
Single Unlock
Monthly Plan
Yearly Plan