Risk Management for ABC Fitness Gym

This report discusses the importance of risk management for ABC Fitness Gym and identifies key threats such as lack of employee records in digital formats, lack of digital advertisements, and lack of WHS. It also suggests existing risk mitigation strategies and the impact on the organization. The report concludes by recommending the integration of technology, employees, and organizational culture to achieve more efficient risk management.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student:
Name of the University:
Author Note:

1RISK MANAGEMENT
Executive Summary:
The report below shows that risk management is an important part of business operations. The
business organizations have to adopt a more technology based operations in order to enhance
their efficiency. However, it can also be pointed out from the analysis that the firms like ABC
Fitness Gym the managements of these firms should take into account the different risks which
their respective firms face or may face in the future. Finally, it transpires from the discussion that
integration of technology, employees and organizational culture enhance risk management.

2RISK MANAGEMENT
Table of Contents
Executive Summary:........................................................................................................................1
Risk assessment:..............................................................................................................................2
Identification and discussion of the key threats:..........................................................................2
Lack of employee records in digital formats:..........................................................................2
Lack of digital advertisements:................................................................................................2
Lack of WHS:..............................................................................................................................3
Existing risk mitigation and their impact on the organization:........................................................3
Brief Summary of the projection mechanism including people, culture and technology:..............6
Gaps requiring further analysis and rationale for the gap:..............................................................7
Conclusion:......................................................................................................................................7
References:......................................................................................................................................9

3RISK MANAGEMENT
Risk assessment:
Identification and discussion of the key threats:
The following are the main risks which comes to the forefront upon analysis of the
technological environment of ABC Fitness Gym:
Lack of employee records in digital formats:
ABC Fitness Gym suffered from maintain ace of poor employee records. The paragraph
titled, ‘Employees’ clearly mentions that the employees of the gym were employed in a
particular department. The paragraph also mentions that the members often preferred taking
tours of the gym prior to becoming members. The tours consisted of six visitors and lasted for an
hour. It can be pointed out that the tour allowed the prospective customers to gain information
about the facilities which the gym could offer in terms of technology and expertise which the
trainers employed by the gym could offer to the former. Thus, it is evident that the management
in order to be able to create strong impression about the gym before the prospective customers
require cooperation of the trainers employed by the different departments. However, in absence
of digital employee records showing the trainers employed in the different departments, the
management failed to create strong impression before the customers which in turn led to revenue
losses.
Lack of digital advertisements:
The second risk which ABC Fitness faced pertaining to technology is marketing risks.
The case study does not mention about the digital presence of the gym. The sections ‘Use of gym
equipment’ and ‘Equipment Maintenance’ clear give detail descriptions about the different types
of machinery the gym possessed, which in turn required immense investments. Thus, one can

4RISK MANAGEMENT
infer from the discussion that the gym would be required to generate immense revenue to
distribute this immense capital expenditure the gym incurred towards machinery. The case study
on the contrary mentions that the gym allowed prospective customers to take tour of the gym
which served as the only strategy of the gym to acquire new members. Thus, it can be assumed
from the analysis that the gym did not advertise its services and facilities on the digital platform.
This limited its access to new customer base which as a result reduced its acquisition of new
customers and thus limited its revenue generation.
Lack of WHS:
The gym did not follow strong WHS policies. This can be assumed from the fact the case
study remain silent about WHS facts. The case study did not mention use of fire extinguishers
and other technological setups which enable WHS risk management (Legislation.gov.au, 2019).
Thus, it is evident that the gym lacked strong risk management policies.
Existing risk mitigation and their impact on the organization:
The following table identifies the risks which ABC Fitness would take into account while
adopting a technology based faction:
Risks of ABC Fitness Gym
Ris
k
no
Documen
t control
informati
on
Risk
identifier
Risk
Category
Risk
Descripti
on
Impact of
the risks
Risk
response
category
Owner
of risk
Existing
risk
mitigation
Owner of
Risk
response
action
1 Profit and
Loss
statement,
balance
sheets
Falling
profits
because
competito
r gyms
are
advertisin
g their
facilities
on the
digital
space and
attracting
Market
risks
1. Market
risks can
originate
due to
introducti
on of new
gyms
with
more
innovativ
e workout
pacakges
or
1. Fall in
revenue and
losing of
consumers.
(short term
impact)
2. Losing
investors,
and supply
chains due
to falling
capacity to
give
Strategic
decisions
,
marketin
g
strategie
s
Finance
departme
nt,
Marketin
g
departme
nt, Risk
manager,
Engineer
1.
Formation
of a strong
risk
manageme
nt strategy.
2.Use of
modern
risk
manageme
nt systems
3.Strengthe
ning
Marketing
departmen
t

5RISK MANAGEMENT
more
cusomers
introducti
on of new
workout
packages
by
existing
competito
r gyms
and/or
entry of
new
companie
s firms
with
similar
products.
2. Loss of
customer
loyalty
positive
ROI.
(medium
term)
3. Goodwill
risk and
losing of
global
market
position
(long term
loss)
4. Reduced
productivity
due to
increasing
accidents
and loss of
resources
marketing
of
products,
introducing
new and
innovative
products
with less
competitors
Conducting
marketing
analysis
2 Risk
register
Employe
es,
customer
s or any
other
stakehold
er
WHS
risks
WHS
risks to
employee
s
(trainers)
and
customer
s due to
collision
with
machinbe
ry while
workouts
etc
Loss of
productivity
, actions
from Safe
Work
High to
very
high
Manage
ment
Safety
training of
employees
Managem
ent and
the
concerned
departmen
tal heads
3 Unjustifie
d loss of
capital,
Unjsutifie
d loss of
data,
Unexplain
able alter
of
informatio
n
Employe
es,
customer
s or any
other
stakehold
er
Cyber
theft risks
1.Cyber
attack
would
cause loss
of ICT
data and
designs
which
would
attract
huge
security
risks
towrads
the
companie
s
companie
s.
2. Cyber
attacks
lead to
loss of
customer
and
financial
data of
extreme
business
1. Loss of
sensetive
business
data.
2. Loss of
financial
resources.
3.
Unauthorise
d access to
the business
strategy
information
of the
company.
4. R1
High Apex
managem
ent and
all the
departme
ntal
heads
1.
Tightening
of security.
2.
Allocating
new email
ids and
passwords
to each
employees.
3.
Mandating
subordinate
s to obtain
approval of
superiors to
accede to
specific
information
.
4. Making
it
compulsory
for all
employees
to
exchange
official
information
Apex
managem
ent and all
the
departmen
tal heads

6RISK MANAGEMENT
significan
ce. Loss
of
customer
data and
financial
resources
online
lead to
R1
3. Data of
customer
s are
leaked to
external
parties
which
spark
security
issues
among
customer
s
exclusively
on the
formally
laid path of
information
sharing.
5.
Employees
holding
assistant
managers
and beyond
should lock
their
systems
using a
four layer
password
security.
4
Cannot be
document
ed
Employe
es,
customer
s or any
other
stakehold
er
Natural
disasters
Natural
disasters
lead to
loss of
resources,
inventory
and assets
Depends on
the
seriousness
and
intensity of
the
calamities
Immedia
te
Governm
ent,
security
personnel
etc
Evacuation
or any
other
necessary
steps
Governme
nt,
security
personnel
etc
5
Governme
nt and
legal
websites
Apex
managem
ent
Change in
legislation
s
pertaining
to retail
sector
ABC
Fitness in
order to
implemen
t
technolog
ical
setups
should
comply
with the
data
usage
laws
passed by
the
Governm
ent of
Australia.
1. Damage
to existing
stock
2.
Unproductiv
e
maintenance
costs
3.Requires
companeies
in Australia
adapt the
relevant
areas of
operations
as per the
laws like
cyber laws
Immedia
te
Apex
managem
ent and
all the
departme
ntal
heads
Complianc
e, OHS
strategies
Governme
nts
6 Risk
register
Apex
managem
ent,
security
officer
and any
other
employee
Fire,
exlosions
Loss of
materials,
loss of
gym
equipmen
t, injury
of
employee
s, loss of
productiv
ity,
casualty
in case of
Companies
lose
productivity
, employees,
resources
Immedia
te or
within
the date
of
enforce
ment
specified
specified
Apex
managem
ent and
all the
departme
ntal
heads
Risk
manageme
nt
strategies
Apex
managem
ent and
finance
departmen
t

7RISK MANAGEMENT
large
scale
explosion
s
7 Financial
statements
Apex
managem
ent and
top
managers
including
CFO,
R&D
head,
night
auditors
Goodwill
risks
ABC
Fitness
may
loose
trust of
stakehold
ers like
customer
s
Companies
lose
productivity
, employees,
suppliers,
patents and
assets
Immedia
te
Apex
managem
ent and
all the
departme
ntal
heads
Risk
manageme
nt
strategies
Apex
managem
ent and
finance
departmen
t
8 Financial
statements
Apex
managem
ent and
top
managers
including
CFO
Capital
risks
Weakeni
ng of
capital
base of
companie
ss due to
lower
generatio
n of
capital
Companies
in Australia
lose
productivity
, employees,
suppliers,
patents and
assets
Immedia
te
Apex
managem
ent and
all the
departme
ntal
heads
Strengtheni
ng
marketing
of
products,
introducing
new and
innovative
products
with less
competitors
to boost
revenue
generation
and
strengthen
goodwill
Apex
managem
ent and
finance
departmen
t
9 Financial
statements
Apex
managem
ent and
top
managers
including
CFO,
R&D
head
Technolog
ical risks
1.
Modern
technolog
y leaves
perevious
technolog
y
versions
redundant
.
Requires
companies
in Australia
to carry on
continuous
research on
product
technology,
operation,
ecommerce
technology
etc to
enhance
customer
services
Immedia
te
Apex
managem
ent and
all the
departme
ntal
heads
Requires
companies
in Australia
to carry on
continuous
research on
product
technology,
operation,
ecommerce
technology
etc
Technolog
cial
officer
Brief Summary of the projection mechanism including people, culture and technology:
The risk identified above clearly show that gym should include people, culture and
technology to mitigate them to the feasible extent. For example, the management of the gym
should ensure that the digital advertisements of the gym comply with the consumer laws and

8RISK MANAGEMENT
present authentic facts before the consumers. Similarly, the staff should be provided
technological training which would enable them to utilize the advanced machinery better (Aven,
2016). The management should establish an organizational culture which encourages innovation
in terms of technology use. Thus, it can be projected that integration of technology, employees
and organizational culture would enable the gym to gain better risk mitigation.
Gaps requiring further analysis and rationale for the gap:
The analysis faced several gaps which hindered conducting deeper analysis. First of all,
the case study remains silent about the marketing strategies adopted by the gym to promote its
services. This gap made it rational to assume that the gym did not advertise its services digitally.
Secondly, the case study did not mention WHS safety. This made it rational to assume that the
gym practiced weak WHS strategies.
Conclusion:
The discussion above can be concluded that business organizations should adopt
technology as a mean of operating in the market. The management of these companies should
hold electronic record of the employees placed in each department which would enable former to
allocate the employees as per business requirements. It can also be concluded that the companies
should advertise their services on the digital platform to attract more customers. It can also be
concluded that the companies should consider the different types of risks and the methods which
they can adopt to mitigate them. Finally, it can be concluded that the companies should integrate
technology, human resources and organizational culture to achieve more efficient risk
management.

9RISK MANAGEMENT
References:
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), 1-13.
Legislation.gov.au. (2019). Retrieved 7 October 2019, from
https://www.legislation.gov.au/Latest/C2017C00260