Risk Management Plan for Harrods Ltd.

This assignment focuses on developing a risk management plan for Harrods Ltd., a small-sized business facing challenges due to a lack of professional business culture. It involves conducting a PEST/PESTLE analysis, SWOT analysis, and identifying critical success factors. The plan outlines strategies for training employees, enforcing rules, and promoting professionalism within the organization.

Risk Analysis and
Management Plan

Table of Contents
PART 1: ESTABLISH RISK CONTEXT.......................................................................................3
Review on organisational process..........................................................................................4
Scope for your risk management process ..............................................................................4
Organizational Communication methods...............................................................................4
Construct a PEST/PESTLE analysis......................................................................................5
SWOT ANALYSIS................................................................................................................6
Critical Success Factors.........................................................................................................7
Method to support risk management activities.......................................................................7

PART 1: ESTABLISH RISK CONTEXT

Review on organisational process.
The selected organisation, Harrods Ltd. is a small sized entity, run by the individual and the
family. The company is totally managed by a single owner thus making it depriving of the
required business culture. There is no other partner in the entity so the functions are performed
within extreme leniency that ruins the business culture. As a result, the employees of the
organisation does not perform their roles responsibly (Bodie, Kane, and Marcus, 2014). The
company has lack of professional business culture which impacts on the effectiveness of the
undertaken tasks. At present, there is no such plan that is implemented by the entity to
eliminate the unprofessional business cultures. However, there are some rules applied by the
human resource team to make the organisational culture professionally strong.
Scope for your risk management process
The risk management process suggested for the selected firm will assist in identifying the
factors that are creating lack of professionalism in the business cultures. Further, with the help
of qualitative and quantitative risk analysis tools, the examination of the issues will be done in
order to plan suitable changes. Lastly, the risk monitoring and control tool will assist in
managing the implement changes to overcome the risk. In this way, the risk management plan
will help in complete evacuation of the problem faced by Harrods Ltd.
Organizational Communication methods
Internal Preferred
Communication
Channel
External Preferred
Communication
Channel
Employees
Direct Verbal
Communication,
emails, intranet.
Consumers Newsletters, posters,
advertisements, social
media
communication,
Formal emails,
Conducting meetings
Suppliers Mobile
communication

Managers
Stockholders
Mobile communication Government Verbal and written
communication
Strategic Partners
Meetings and emails Media emails, mobile, social
sites, etc.
Construct a PEST/PESTLE analysis.
Political Effective laws present to support the decision of promoting professional
business culture. Conditions are also stable to bring changes.
Economic The entity is small scale and thus finance is a big issue.
Social Social factors are highly favourable for promoting professional business
culture.
Technological The advancements in technology also demands for maintaining
professional business culture.
Legal Compliance with all the legal frameworks is a time-consuming, cost
consuming, production restricting process which will harm the
professionalism (Haimes, 2015)
Ecological CSR responsibilities (associated with environment) are major part
played under professional business culture.

SWOT ANALYSIS
Strength (Internal)
Human resource team of the entity has
implemented various rules to improve
business culture.
Almost all the external environmental factors
are in favour with the development of risk
management plan.
Weakness (Internal)
The lack of professionalisation impacts on
the desired perfection needed in a business
activity.
Opportunities (External)
Harrods can comply with the legal
framework to bring professionalism in
business culture.
In order to increase the performance, it is
essential to develop a management plan to
eliminate the issue to the firm (Pritchard,
and PMP, 2014).
Threats (External)
Lack of appropriate resources may affect the
undertaken risk management plan.

Critical Success Factors
In order to manage the risk of lack of professionalism in business culture of Harrods, the critical
success factors includes:
1. Formal work methodology along with managing budgets.
2. Experienced Managers and HRM.
Method to support risk management activities.
The ways in which risk management activities can be fulfilled are as follows:
 Training of employees for professional development.
 Strict compliance of the rules within the premises.