Risk Assessment: A Strategic Analysis of McDowdeswell's Operations

Assignment 3:- “Risk Assessment”
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Table of Contents
Introduction.....................................................................................................................................................................4
LO4 Conduct a strategic risk analysis on the operations functions of an organisation..................................................6
Company overview....................................................................................................................................................6
Operations Management............................................................................................................................................6
P8 Devise and carry out a strategic risk analysis of an organization using risk identification and mapping.................8
Risk Assessment Plan................................................................................................................................................8
Risk Identification....................................................................................................................................................10
Level of priority.......................................................................................................................................................11
Plan mitigation.........................................................................................................................................................12
Allocate responsibility.............................................................................................................................................12
Monitoring and contingency planning.....................................................................................................................14
Risks (A Look Back)................................................................................................................................................15
Risk classification....................................................................................................................................................16
Areas to be considered.............................................................................................................................................18
M4 Develop contingency plans and strategies to minimise the risk highlighted in the strategic risk analysis............22
Risk Contingency Planning......................................................................................................................................22
Benefits and Significance of Risk Contingency Planning.......................................................................................22
Risk assessment strategies.......................................................................................................................................24
D3 Provide valid justification for recommended strategies at operational, tactical and strategic level.......................26
Conclusion....................................................................................................................................................................27
Reference list:...............................................................................................................................................................28
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Introduction
The report study is aimed at analysing the operations management of McDowdeswell’s and its
risk assessment factors. In the reported study, the risk assessment plan has also been discussed
which includes of the following things such as: risk identification, level of priority, plan
mitigation, allocate responsibility, monitoring and contingency planning respectively. In the
financial world, the concept of risk management refers to the practice of determining the
potential risks that may take a toll in the future, analyzing and assessing them and finally, taking
precautionary steps for curbing down the negative effects of the risks. When a business entity
makes the decision of investing, it invariably gets exposed to a number of financial risks. The
amount, intensity and level of such risks are dependent on the traits of the financial instrument.
The common financial risks come in the form of high volatility of the capital, recession, high
inflation, bankruptcy and market problems.
In addition to this, the risk assessment strategies have also been identified in this assignment that
includes of the various functional levels as well as stakeholder’s relationship in case of planning
mitigation. Thus for minimizing as well as controlling the exposure of such financial risks, the
managers and the business investors have to delve deeper into the concept of risk management.
During times of financial turmoil, lack of proper risk management plan can cause havoc on the
business and may even lead to irreparable damage. The level of risk is linked to the different
classes of assets and liabilities involved in the business.
The following report is based on the risk analysis of the activities of managing the operations and
assessing the risks in the McDowdeswell for achieving the strategic goals and objectives of the
business. The operational activities within the company are linked with strategy, designing,
controlling and finally managing the quality of products which enhances the brand value of
McDowdeswell. This company is an internationally famous fast food chain that serves good
quality foods to millions of food lovers. This report also includes an internal and external factor
analysis of risk for identification of the factors influencing an organisation. McDowdeswell is
striving to establish a corporate image and offering pleasant and fast services at a competitive
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pricing. They are adopting various strategies in order to reach out to the domestic as well as
international customers and fulfilling their needs and demands.
Furthermore, the report study is aimed to understand all businesses are susceptible to the risks of
unexpected events such as natural calamity, injury to the employee or consumer, loss of funds
through fraud means or theft and damage to the properties can cost money or even permanent
end to the business. By considering the potential threats and risks and by having the right plan in
hand, the business can not only save money but also shield the organisation’s future. The most
important aspects of the right business risk management plan which include of the following
things. Moreover, the main objectives of report study are as follows:
 Identification of the risk or understanding what might go wrong
 Analysis of the risk or determining how it may affect the business
 Controlling the risk or understanding what can be done for preventing loss and
recovering the loss, in case it already takes place
 Treating the risk or identifying the means of paying for the risks
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LO4 Conduct a strategic risk analysis on the operations functions of an organisation.
Company overview
McDowdeswell is a leading chain of fast food retail with over 3600 eateries in different countries
of the world. Their primary objective is to offer quality and delicious foods to customers along
with pleasant services at a very reasonable cost. This strategy is attracting millions of consumers
and this is aiding the business to employ many individuals. In the past, this business faced a lot
of threats and challenges owing to change in customer demands and a lack of educated
management systems.
The common products of this company include chicken hamburgers, French fries, desserts and
salads etc. With such services and quality products, McDowdeswell has more than 37000
workers in various parts of the world. This food chain has expanded to other continents like Asia,
Europe, Africa, the USA and South America. The primary reasons behind the success of the
organisation include fast service, reasonable price, limited menus and quality control. Though
McDowdeswell is becoming successful in running the organisation on a large scale, it is facing
many challenges in the supply chain. They are also facing the threats of copied menus and
competitive pricing of the rival business. McDowdeswell is also taking up measures to recycle
and manage the waste products. They are also improving their packaging and recycling their
materials in order to use the resource optimally. The operation managers of McDowdeswell are
planning to boost their business and as a result, they are considering all the aspects that can help
the business to reach new heights. Thus, they are considering the risk factors as well which may
prove to be a threat for the growth and development of the business (Davis et al. 2018).
Operations Management
The operations management refers to the area which is concerned with controlling and
redesigning of production activities such as production of goods and services. The environment
within and without the business are inclusive of various factors and forces that casts an impact on
the management of the business and significantly effects the decision-making process. In order to
have a comprehensive analysis of the business environment of McDowdeswell, it is crucial to
conduct a risk analysis of an organisation. According to the views and thoughts of the author
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Jacobs, et. al. (2014), the study of operations management is very crucial for the business
organisations in order to have an appropriate planning, organising and supervising of the key
activities and resources of organisation. A manager of an organisation plays various functions
and the operations management is among one of them (Jacobs, et. al., 2014).
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