Risk Management and Action Plan for Business

The provided document is a solved assignment on risk management and action planning for a business. It follows the typical structure of such assignments, starting with an introduction that explains the importance of risk management in today's competitive market. The next section identifies potential risks, including security systems, obsolete technologies, competitors, and likelihood of these risks occurring. An action plan is then proposed to mitigate these risks, including creating a firewall, undertaking software updates, and conducting market research. The document also touches on documentation for the action plan and methodology for evaluating its success. Finally, it mentions the importance of insurance, specifically 'Volunteer Protection Act 2001', in protecting the business's interests for growth and expansion.

Running head: RISK MANAGEMENT
RISK MANAGEMENT
Name of the student
Name of the university
Author note

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Executive summary
The report is aimed at determining the risk and the management that is being undertaken by
Apple inc. It helps in the proper identification of the factors and the systems that are being
undertaken by the organization while assessing the risks and thereby strategize for mitigating the
risk factors.

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Table of Contents
1. Organization profile.....................................................................................................................4
2. a. Internal stakeholders................................................................................................................4
2. b. Risk concern for each of the internal stakeholders..................................................................5
3. a. External stakeholders...............................................................................................................6
3. b. Risk concern for each of the external stakeholders.................................................................6
4. Risks based on the PESTLE........................................................................................................8
5. a. Strengths of the organization’s risk management practices.....................................................8
5. b. Consideration of these strengths..............................................................................................9
5. c. Weaknesses of the organization’s risk management practices................................................9
5. d. Consideration of these weaknesses..........................................................................................9
6. Factors relating to the risk management plan..............................................................................9
a. Success factors.............................................................................................................................9
b. Goals and objectives..................................................................................................................10
7. Methodology for assessing the risk...........................................................................................10
8. Risk assessment matrix..............................................................................................................11
Treatment for the risks...................................................................................................................11
9. Action plan.................................................................................................................................12
10. Documentation for the action plan..........................................................................................14

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11. Methodology for evaluating the success of the action.............................................................14
12. Details of insurance.................................................................................................................15
References......................................................................................................................................16

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1. Organization profile
The organization that is being considered for evaluation as a part of this analysis is Apple
inc., which is an American multinational organization aiming at the development of technology
and software for the better functioning of the computing systems. It is headquartered in Apple
Park, 1 Apple Park Way, Cupertino, California, U.S. the company has developed a number of
software and hardware for befitting the requirements of the people in this era of Information
technology. The gross revenue of the company as was calculated in the year 2017 was around
US$ 229.234 billion which portrays the development of the organization in the market
(Finance.yahoo.com 2018). The company has a current employment of 123,000 employees
which clearly states the high retention rate of the employees ion the organization thereby
resulting to its sustainability in the market structure. On the other hand, the development of the
organization can be stated through the analysis of the number of retail stores that the company
has around the globe. It has helped in the understanding of the different aspects of the
development that is being undertaken by the management of the organization.
2. a. Internal stakeholders
The internal stakeholders of the organization are:
 Donors
 Employees
 Investors
 Board members
 Owners

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2. b. Risk concern for each of the internal stakeholders
Internal stakeholders Risks
Donors The technology that is being used by the
organization might get outdated and that might
dissolve the organization and its goodwill. It will
be affecting the donor’s status in the business.
Employees The employees and their employment might get
affected through the dissolution and any assorted
risks faced by the organization.
Investors The investments that are being undertaken by the
investors might get affected through the risks that
are being faced by the organization. The decreasing
profitability of the organization becomes a growing
concern for the investors, as they fear the
insolvency affair.
Board members The shares of the board members are affected
through the productivity of the organization in the
market. On the other hands, the company faces
various obstructions while tactically facing the
different aspects of the risks (Bolton, Chen and
Wang 2013).
Owners The owners of the company gets affected through
the declining productivity of the organization in the
market structure. It has helped in the understanding
of the prospects of the change that is being initiated

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by the organization in the market.
3. a. External stakeholders
The external stakeholders of the organization are listed in this section of the analysis:
 Supplier
 Society
 Creditor
 Customer
 Shareholders
3. b. Risk concern for each of the external stakeholders
External stakeholders Risks
Supplier The suppliers of the company might get
affected through the low productivity of the
organization, as the demand for the suppliers
will fall in that scenario.
Society The society where the organization performs
its operations gets affected through the risks
that are being faced by the same leading to
dissolution because the lifestyle and the social

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systems might collapse which rested on the
profitability of the organization in the market.
Government The tax pay ability of the organization might
get affected through the decrease in the
productivity, which hurts the interests of the
government relating to the development of the
nation.
Customer The customers of the company are drastically
affected by the fall in the productivity of the
organization as the shift of the loyalty and trust
is required to be undertaken by them. The fall
in the product quality will be affecting millions
off Apple users affecting their trust and loyalty
at the same time.
Shareholders The shareholders of the organization also gets
affected through the minimum returns on the
investments that they undertook (Pritchard and
PMP 2014). The fall in the productivity affects
the interest of the shareholders largely.

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4. Risks based on the PESTLE
a. Political- the risk that is being faced by the organization is based on the acceptability of the
product and the operations in the international markets.
b. Economic- the organization might face issues while expanding in the international markets
based on the consideration of the economic stability in the market at which the organization is
trying to operate.
c. Social- the social risks that the organization might face is based on the understanding of the
different aspects of the change that the organization is required to adapt in order to suit the
individual needs of the customers (Wu, Chen and Olson 2014).
d. Technological- the technological issues that the company might face is based on the outdated
technology which would result to a rise in the competitors in the market. It might affect the
market positioning of the brand affecting the goodwill of the organization in the market.
e. Legal- the legal factors that affects the organization is again based on the flexibility of the
organization to adapt to the legislations that are being set out by the nations where the
organization aims at operating.
f. Environmental- the environmental changes affects the free functioning of the organization in
the market. It affects the availability of the resources and thereby affects the profitability of the
organization in the market.
5. a. Strengths of the organization’s risk management practices
1. Security and confidentiality
2. Progress of the organization through an analysis of the needs for sustainability

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5. b. Consideration of these strengths
The strengths help in determining the progress made by the organization through the
identification of the risks and thereby avoiding the same. On the other hand, the proper
maintenance of the confidentiality helps the organization in retaining the competitive advantage
of the organization in the market.
5. c. Weaknesses of the organization’s risk management practices
1. Inaccurate measures for determining the risks
2. The security system of the risk management might get compromised
5. d. Consideration of these weaknesses
The weakness of the risk management systems that is being undertaken by the
organization is based on the security issues that are faced by the organization relating to the
documentation of the risks (McNeil, Frey and Embrechts 2015). On the other hand, the
inaccurate measures tending to the risks, which are based on the assumptions affects the
productivity of the organization in the market.
6. Factors relating to the risk management plan
a. Success factors
The success factors that are being considered by the organization while undertaking the
risk management plan is based on the retention of the brand loyalty among the customers and the
retention of the quality of the products manufactured by the organization (Glendon, Clarke and
McKenna 2016). The most important factor that influences the organization for undertaking a

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risk management is based on the understanding of the different aspects of the change in the
structure and the functioning of the organization in the market.
b. Goals and objectives
The goals of the organization is based on maintaining the market position of the
organization through the continuous innovation. It has helped the organization in enumerating
the risks while undertaking the innovation in the organization and the structural changes.
Therefore, the goal of the organization of continuous innovation leading to sustainability is
backed by the urgency of the risk management plan.
7. Methodology for assessing the risk
The questions relating to the methodology and the solutions arre being listed in this section of the
analysis.
 What might lead to the impact? (qualitative risk assessment)
 What is the probability of its failure? (probability quantification - quantitative risk
assessment)
 Expected consequences? (impact assessment - quantitative risk assessment)

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8. Risk assessment matrix
Consequence
Risks security systems Obsolete
technologies
Competitors
Likelihood
Minor Moderate Major
Frequently 6 9 7
Likely 2 4 10
Remote 1 3 6
Consequence of the risks
The risks that are being analyzed by the organization affects the smooth functioning and
the market position of the organization. It also affects the goodwill of the same in the market
affecting the customer loyalty.
Treatment for the risks
Risks Treatment
Security systems Creation of Firewall
Obsolete
technologies
Continuous Innovation
Competitors Market research and analysis for the determination of the weak elements

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9. Action plan
Treatment
(from
question 8)
Actions required
for
implementation
(based on
hierarchy of
control)
Responsible
person
Deadline Review
treatment
date
Communication
method
Creation of
Firewall
 The
proper
analysis
of the
needs of
the
change
that is
being
undertak
en by the
organizat
ion
Understa
nding the
urgency
for the
IOS Software
developer
4th June 2017 7th July 2017 Emails and
company portal

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introducti
on of the
firewall
Undertak
ing
software
updates
Continuous
Innovation
Market research
on the type of in
innovation
required for
coping up with the
needs of the
consumers
(McNeil, Frey
and Embrechts
2015)
Managers of
the respective
departments
where
innovation is
required
7th august
2017
4th September
2017
Social media
platforms,
newsletters and
the emails
Market
research and
analysis for
the
determination
of the weak
elements
Undertaking the
market research
will be helping
the organization in
understanding the
improvements
brought about by
the competitors in
Operations
manager
5th September
2017
10th
November
2017
Newsletters,
blogs, e-releases
and other
portals

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the market. It will
be helping the
organization in
strategizing the
change that is
required to be
undertaken by the
same for
maintaining the
sustenance in the
markets
10. Documentation for the action plan
The organization makes use of various confidential monitoring tools for keeping a record
of the feedbacks after the implementation of the action plan in the organizational structure
(McNeil, Frey and Embrechts 2015). It helps in determining the progress made by the
organization through the proper understanding of the various aspects of the change that is
undertaken by the organization by the plan.
11. Methodology for evaluating the success of the action
The methodology that is being undertaken by the organization is based on the evaluation
of the records that are being managed and documented by the organization. The proper
management of the risks that are being undertaken by the organization is based on the evaluation
of the feedbacks that are attained by the organization while implementing the change.