Risk Management Analysis, Action Plan, and Stakeholder Involvement

This report provides a comprehensive analysis of risk management within an organization, encompassing various risk categories such as financial, business, technology, business continuity, and regulatory risks. It assesses the likelihood and potential impacts of each risk, including negative social media comments, client base diversification, loss of key staff, service quality issues, and financial instability. The report then outlines a detailed risk treatment action plan, specifying risk owners, timeframes, and documentation for each identified risk. Furthermore, it highlights the importance of stakeholder involvement in implementing risk actions and management plans, including minutes from a meeting with key stakeholders. Finally, the report details methods for monitoring action plans, emphasizing the need for stakeholder proposals, weekly reviews, and monthly reporting to ensure effective risk mitigation and ongoing progress assessment. The report also includes an updated status for each risk, indicating the progress of implemented plans and areas needing further attention.

Running Head: Manage Risk 1
Manage Risk
Name:
Institution:
Course Code:

Manage Risk 2
Task 1
There are different categories of risks in the case study. These risks are distributed as financial,
business, technology, and business continuity together with regulatory. In this section, we focus
on analyzing the risks as well as determine their likelihood of occurring (Ryan & Deci, 2017). In
case they occur, we analyze their impacts along with risk rating. First, business risk and their
consequences include negative comments in social media thereby resulting ina significant loss of
reputation and loss of fees for the clients. Again, the risk of failure to diversify client’s base
results in massive loss of revenue.
Third, the risk of loss of key staff members in the organization may result to loss of business
continuity, loss of clients as well as loss of business intelligence to conduct business operations
(Richard, 2013). Fourth, the risk of failure to deliver quality services and products may result to
increase the number of claims from the clients, full scrutiny of products and services by
regulation (McGregor, 2012). It may as well damage the image and reputation of the
organization. The likelihood of business risks occurring is likely and the consequences are major
to the organization.
In addition to business risks, there is business continuity risk. This risk occurs when an
organization loses the ownership. In that case, the consequence of this risk is a failure of
diminution in the value of the organization because the owner of the organization die or become
incapacitated (Maslow, 2013). The likelihood of this risk is possible and the consequence is
catastrophic. Again, regulatory risk occurs due to failure to meet regulatory meeting thereby
resulting to breach of a contract associated with huge fines and costs (Marylene, 2014). The
likelihood of this risk occurring is unlikely but the consequences are major if the risk occur.
Lastly, financial risk as a result of failure to collect receivable in appropriate time may results to
loss of revenue, increased debt and unstable cash flow. The risk is likely to occur and the
consequences are major.
Task 2
Risk Treatment Action plan Risk owner Timefram
e
Documentatio
n
Storage

Manage Risk 3
Loss of
ownership
For this
case, we
accept
because the
loss of
ownership
may arise
from death
This will
have
limited
action
because we
call no
control
Organizatio
n
3 months Review of
ownership
records
Organizatio
n risk
control file
Negative
comments
from
social
media
We should
avoid such
comments
from social
media by
improving
our
reputation
and image
This action
will be
significant
to restore
the good
image of
the
organizatio
n
Organizatio
n
1 month Assessing the
organization
website
Organizatio
n database
Failure to
diversify
client
base
This should
be reduced
This action
will result
in critical
improveme
nt
Human
resource
manager
3 weeks Review of
performance
record
Organizatio
n register
Loss of
key staff
members
This should
be reduced
so that we
don’t lose
business
intelligence
This will be
effective so
that the
organizatio
n can
achieve
competitive
Human
resource
manager
1 months Internal
memo
Human
resource
register

Manage Risk 4
advantage
Failure to
deliver
quality
services
and
products
This should
be avoided
by all
means. A
review of
production
methodolog
y should be
done to
maintain
good
quality
This we
result in
significant
improveme
nt of
business
operations
John
Citizen
3 month Review of
performance
record
Organizatio
n register
Failure to
meet
clients
obligation
This should
be reduced
so that we
don’t lose
business
intelligence
This action
will result
in critical
improveme
nt
John
Citizen
6 months Organization
register
Organizatio
n register
failure to
collect
receivable
atthe
appropriat
e time
This should
be shared
so that all
stakeholder
s can
understand
the
importance
of finance
to the
organizatio
This will be
effective so
that the
organizatio
n can
achieve
competitive
advantage
Finance
officer
3 weeks Financial
statements
Financial
transactions
record

Manage Risk 5
n
Task 3
There is need to involve all stakeholders on how to implement risk actions and risk management
plans. The following minutes demonstrates what was deliberated in the meeting with
stakeholders.
A minute of the meeting held on 4thMarch 2018 at Social Hall at 2:00 P.M.
Attendees
1. Finance manager
2. Human resource manager
3. Legal compliance manager
4. Business controller
5. IT manager
Agenda
The agendas were to discuss the implementation of risk action and risk management plans.
Item 1: Implement the action to avoid negative comments in social media
In this plan, all the stakeholders decided to initiate a program that will review how to
improve the image and reputation of the organization (Thomas, 2009). The business
controller would manage that process and it was to be implemented within 2 months.
Item 2: Implement action to avoid poor quality products and services
This action would bring a significant improvement to the organization. The human resource
manager was required to recruit qualified workers within 1 month.
Item 3: to reduces case of failure to collect receivables

Manage Risk 6
All stakeholders were requested to share this information to avoid loss of revenue,
uncollected debts and other financial crisis (Kanungo & Manuel, 2014). The finance manager
was to conduct a financial audit within 1 month. Later in the meeting was adjourned at 5: 00
P.M.
Task 4
Methods for Monitoring Action Plans
These plans will be implemented using several approaches. First, all stakeholders must come
up with a proposalin the implementation process. This will ensure the plans are viable.
Second, the weekly review of the implantation process must be initiated to determine ups and
downs in the process (Arnold, 2010). The last method will be filing reports monthly and
should be submitted to risk management department for scrutiny and approval.
The progress of Actions Plan
The progress of the impel nation process for action plans will be done weekly and monthly.
All stakeholders involved in a particular plan must compile a report on progress and the way
forward.
Updated Status for Each Risk
Risk Updated status
Loss of ownership The plan implemented and risk mitigated
Negative comments from social media Plan halfway implemented
Failure to diversify client base The planneeds to be reviewed
Loss of key staff members Few days and risk will be mitigated
Failure to deliver quality services and
products
The plan implemented and risk mitigated
Failure to meet clients obligation Plan facing some challenges

Manage Risk 7
failure to collect receivable within
anappropriate time
The plan implemented and risk mitigated

Manage Risk 8
References
Arnold, J. (2010). Coaching Skills for Leaders in the Workplace: How to Develop, Motivate
andGet the Best from Your Staff. How to Books.
Kanungo, R.N., & Manuel, M. (2014). Work Motivation: Models for Developing Countries.
Sage Publication put.
Marylene, G. (2014). The Oxford Handbook of Work Engagement, Motivation and Self-
Determination Theory. OUP USA.
Maslow, A.H. (2013). A Theory of Human Motivation. Start Publishing LLC.
McGregor, D. (2012). The Human Side of Enterprise. New York, 21.
Richard, A. (2013). Job Satisfaction from Herzberg’s Two Factor Theory Perspective. Grin
publishing.
Ryan, R.M., & Deci, EL. (2017). Self-Determination Theory: Basic PsychologicalNeed in
Motivation, development,and Wellness. The Guilford Press.
Thomas, K.W. (2009). Intrinsic Motivation: What Really Drives Employees Engagement. Berret-
Koehler publishers.