Risk Assessment and Management Assignment 2022

RISK ASSESSMENT AND MANAGEMENT

EXECUTIVE SUMMARY
Present report discusses the relevance of risk assessment and management so that critical
issues and risks can be mitigate to certain extent. In this context, Andrew McDonald Shoemaker
is taken into account which is a sole trader. It is found that company need to incorporate sound
ERM strcutrure as part of identifying and reviewing the risk. For this, measure like
brainstorming, HAZOP and FMEA approaches, Risk Audit, etc. can be taken into account. Risk
assessment is being helpful in improving the internal conditions in the business whether it is
relevant with the financial risks, operational, competitive, production etc. Andrew McDonald
was being suggested on the basis of risk assessment matrix in context with improving the
product differentiation. It was found that, the firm is only dealing with the boots since three
decades. Therefore, it is required to bring innovation in products, designs as well as company
needs to introduce various product lines.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BACKGROUD TO THE ORGANISATION..................................................................................1
PURPOSE/OBJECTIVE OF THE RISK MANAGEMENT PLAN...............................................3
ENTERPRISE RISK MANAGEMENT (ERM) STRUCTURE:....................................................4
Diagram and details of the ERM structure..................................................................................4
Key roles and Responsibilities of an organization......................................................................7
Key risk management activities/ processes in order to ensure risk are identified, assesses and
managed.......................................................................................................................................9
KEY RISKS AND MITIGATION PLAN.....................................................................................11
ORGANISATIONAL REVIEW AND PROCESS MANAGEMENT.........................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
All those activities that lead to generate the possibility of commercial businesses creating
in adequate profits or even losses are known as risks. These uncertainties hamper the
effectiveness of overall business. It is thus crucial for the organisations to implement the best risk
management plan to eliminate the possible obstacles in the productivity. There exist different
areas in the business where risks are associated with; some of the major concerns include the
increased competition, ineffective employee team, less effective organisational behaviour,
strikes, consumer behaviour, regular changes in trend, etc. These elements can make businesses
to face different risks in production, labour unrest, marketing, development, etc. There are two
major sources from where problems can be generated for an organisation such as internal risks
and external risks (Bohnert et.al.,2019). . When issues arise from those events which took place
within the organisation then these are internal risks. On the other hand, risks arising from the
events taking place outside the organisation are external risks.
In the present research work, the significance of a risk management plan will be
explained. The manner in which this plan will be helpful for the entities will also be discussed. A
complete ERM structure will be explained in detail along with diagrams and salient features. The
research paper will further help in stating the key roles and responsibilities for addressing the
business issues. A set of complete activities for resolving the business threats will be identified,
assessed and managed. For better understanding of the plan, an organisation will be taken in
consideration for detailed study. Key risks in the effective functioning of that establishment will
be identified. Based on the data and information gathered from the studies, organisational review
and monitoring process will be implemented.
BACKGROUD TO THE ORGANISATION
In order to understand the significance of enterprise risk management plan, an entity will
be selected for the close examination. For the present study, the organisation chosen is Andrew
McDonald Shoemaker. The cited firm is one of the oldest shoemaker offering products for
almost three decades to customers. The fit-for-purpose factory was now equipped with modern
machinery where soles are prepared with moulds and rubble, glue has been used instead of nails
and threads Many of its competitors backed off after the introduction of machines for cutting,
sewing and attaching soles.
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The firm was established in the year 1999 in Surry Hills, Sydney. It continues to offer
and design handcrafted footwear from intimate workshop in Iconic Strand Arcade ((Andrew
McDonald. 2019). Apart from high street retail machine having expiry date of items, shoes and
accessories by company are created in small quantities for surviving lifetimes. The core principle
of quality are showcased by Andrew McDonald are as follows-
 Materials- The material from sole to upper, each of them are of high quality. Appropriate
staining and dying techniques are employed, company makes sure to respect natural
qualities of the hide in manipulation process.
 Craftsmanship- Vast experience and dedication in art of shoemaking is devoted for pair
of shoes in the studio. The shoes provided by Andrew McDonald are built for supporting
customer’s daily stride for many years.
 Fit- The shoes should be of perfect size on customer’s foot, supporting ankle and
providing leisure of extra spring throughout the day. Multiple fittings are provided for
making sure that satisfaction is met.
 Design- Prioritising on creating footwear that flatters outfit of shoes with grace and
sophistication is ultimate goal of Andrew McDonald. Company is committed to ensure
customer satisfaction is accomplished through appropriate design.
The supply chain and procurement process for determining labour and production
practices follow sustainable and ethical standards. Further, environment-friendly standards are
followed by organisation as well. Designing, making and selling products built for long run that
can be repaired. This helps Andrew McDonald to build long-term and strong relationship with
customers in the best manner possible. Andrew McDonald collaborates with Hollywood
productions. It has had created boots for pictures like Star Wars trilogy, Superman Returns and
Ghost in the Shell. Company has been featured in print media such as Elle Australia, Vogue,
Harpers BAZAAR, The Sydney Morning Herald, The Australian and The Financial Review.
Andrew McDonald have been serving and handcrafting beautiful and quality shoes to
people. It is amongst handful of shoemakers which is committed to design and construct
supportive footwear for entire life. Andrew McDonald seeks in designing and constructing
products of that quality that is timeless in wear and design. In 1996, Churchill Fellowship, an
award was being showered on company. This enabled for studying old footwear techniques in
UK and France. After studying under world-class masters such as John Lobb and Paul Harnden
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Shoemakers, Andrew McDonald, then developed complex practice in the market. It can be said
that new design had been made being inspired from the street, from the nature and the arts in
effectual manner.
The end product is always in sight of Andrew McDonald, firm makes ensure to design
shoes with the strength to effectively transform the footwear which is designed for reflecting
character of customers. This means that firm offers world-class products to all those wearers
which require graceful and beautiful shoes to make them feel delighted by the design. The stylish
and sleek design satisfies customers which is the main reason that Andrew McDonald has been
providing high-quality footwear to people over three decades. The products and accessories are
making people feel delighted with utmost quality and shoes that work for lifetime and plus, have
a timeless design suiting needs of each and every customers.
PURPOSE/OBJECTIVE OF THE RISK MANAGEMENT PLAN
In the last few years there have been many uncertainties which took place in the
economic sector. Earlier, the organisations used to run smoothly on the basis of the judgements
but nowadays it is not possible to identify the threats previously. This has become the main cause
of uncertainties in the business and thus, in order to refrain from the threats and their effects, it
has become vital for the entities to plan the activities in such a manner that they bring the idea to
overcome the obstacles (Shad et. al., 2019). Risks in a company can come from two areas that
are internally or externally. Both cannot be controlled by the entity itself by simply
implementing the policies. The internal factors are still in control with an organisation but it
cannot alter the parameters affecting the external factors. Thus, in this order it is highly
important for a business to plan the activities in such a manner that risks can be managed.
Because without risk management plan, a firm cannot define its objectives for the future. In the
recent years, many companies have added this plan in their systems signifying the significance of
the tool. This is required to make the operations more consistent by increasing focus on the
security (Teller, 2013). Also, it makes the people more confident about the business activities.
The attention on customers under this plan makes them more satisfied creating a healthy bottom
line. The identification of possible risks before they happen allows the business to set up the
procedures to avoid or minimize its impact.
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