Risk Management Briefing Report for Desklib

This report outlines an efficient risk analysis for a medium-sized Australian company that is based in Brisbane. The company wishes to expand its operations through establishing a chain of retail outlets in Sydney, Brisbane, and Melbourne. The report includes a PESTEL analysis, risks identified with mitigation strategies, and an action plan for risk mitigation.

Running Head: RISK MANAGEMENT 1
Risk management briefing report
Student’s Name
Course
University
Date

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Table of Contents
ASSESSMENT TASK 1............................................................................................................................3
INTRODUCTION.....................................................................................................................................3
A review of the context of the risk............................................................................................................4
Internal stakeholders for risk identification............................................................................................5
GOALS FOR THE BUSINESS EXPANSION PROJECT.....................................................................6
PESTEL ANALYSIS.................................................................................................................................7
Strength and weaknesses...........................................................................................................................8
ASSESSMENT TASK 2............................................................................................................................9
Summary of the reports...............................................................................................................................9
Risks identified with mitigation strategies...................................................................................................9
Action plan for risk mitigation...............................................................................................................11
Assessment task 3....................................................................................................................................13
Training options......................................................................................................................................13
Relevance of training...............................................................................................................................13
Risk management process report...........................................................................................................13
References................................................................................................................................................14

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ASSESSMENT TASK 1
INTRODUCTION
This report is going to outline an efficient risk analysis for a medium sized Australian company
that is based in Brisbane. The company has specialized in the manufacturing of skin care
products which are usually of high quality. This business was established purposely to cater for
the increasing demand for skin products because of they are eco-friendly. There mode of
packaging is also eco-friendly which attracts most of the Australians. The company wishes to
expand its operations through establishing a chain of retail outlets in Sydney, Brisbane and
Melbourne. As a result, risk analysis is very crucial so as to formulate effective strategies to
enhance the achievement of the stipulated goals and objectives. Risk management process shall
involve risk identification, risk analysis, risk evaluation, risk treatment and monitoring and
reviewing the risk (Valsamakis, Vivian and Du Toit, 2010). A PESTEL analysis shall also be
conducted so as to evaluate the external factors that may impact the business in several ways and
approach them appropriately.

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A review of the context of the risk
According to (Bessis, 2015) Business expansion comes with various associated risks. Some of
the risks that the company might face in the process are:
Financial risks
Expansion needs sufficient capital which might be a disadvantage for the business. The company
has to thoroughly determine the financial sources that shall facilitate the expansion process to
enhance the achievement of the objective.
Legal risks
The government might have regulations on the number of similar businesses to be established in
similar region by individuals hence the company needs to ensure that it is not violating such
regulations in the process of expansion.
Labor risks
Expansion might result to the need for more number of employees in the various retail stores.
The company must evaluate the rate of labor supply in the predetermined areas so as to avoid
shortage of labor that may have an adverse effect to the success of the business.

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Internal stakeholders for risk identification
Experienced employees
These employees have adequate knowledge on the factors that affect the business due to their
long service in the organization hence they would be efficient in identification of the potential
risks together with the strategies for mitigating the risks.
External stakeholders for risk identification
The consumers
They are significant in risk identification because their consumption behavior play a critical role
in the determination of expansion strategies.

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GOALS FOR THE BUSINESS EXPANSION PROJECT
a) To achieve a wide market
The company wishes to obtain a large market for its products hence the need for expansion to
enhance product accessibility by consumers in the desired regions.
b) To Increase production
The company seeks to increase the production of its products hence the need for expansion so as
meet the consumer requirements in the regions
c) To promote environment sustainability
The company seeks to promote environmental conservation through the increase of eco- friendly
product in the market.
d) To enhance good skin for customers
The company aims to promote healthy skin for most of the Australians in the desired regions.
This is because most of them have skin problems due to their race hence the skin care products
would be of great help to them.

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PESTEL ANALYSIS
Political factors
Political stability in Australia shall enhance the business expansion. The freedom of trade in
Australia implies that organizations can invest in any part of the country hence facilitating the
expansion process.
Economic factors
The stability of the Australian economy implies better price for the products in those localities.
Social factors
Most of the Australians prefer eco- friendly products which is a direct implication of the success
of the company after the expansion takes place.
Technological factors
Increased accessibility of the internet by many people requires the company to make use of the
online purchasing practices rather than just focusing on the expansion of the company.
Environmental factors
The product have minimal impact to the environment which attracts most of the customers.
Expansion shall be efficient due to the great interest of Australians for the product.
Legal factors
The business expansion should be in line with the business laws for efficiency.

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Strength and weaknesses
Strength
Great interest of Australians on eco-friendly products.
Wide market due to large population and stable economy
Weaknesses
Lack of adequate utilization of the technology through e-commerce as the organization do not
have an online purchasing platform.

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ASSESSMENT TASK 2
An email has been send to the marketing manager and the office manager with specification of
the venues and timings. The operations manager outlines the risks associated with the expansion
of the business for the formulation of effective strategies.
Summary of the reports
According to (Simonovic, 2012) the plan for business expansion has various potential associated
risks. The company has great opportunity in the market due to the production of eco-friendly
products which is the center of attraction for most of the Australians. This task shall involve the
assessment of five major risks that are associated with the process of business expansion.
Risks identified with mitigation strategies.
Some of the risks identified by the operations manager are as outlined below:
Lack of effective criteria for disaster management
The company has been experiencing frequent power losses that has been lasting for longer hours
affecting the production of the goods. The company does not have backup generators to enhance
continuous production. To mitigate this risk the company should acquire generators for the
specific regions to cater for expansion (Kumar, 2014).
Increased complexity in processes
The expansion of the enterprise may result to more technical processes resulting to poor
management due to complexity of some of the procedures. This risk can mitigated through
effective training of the staff.

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Strict labor laws
Increased regulations on labor issues such as the minimum wage requirement may hinder the
expansion of the business because newly established enterprises cannot afford to pay the
employees competitively. This can be mitigated through formulation of winning strategies to
align the laws with the expansion.
Talent loss
Expansion may result to wrangles in leadership in relation to the management of the new
business enterprises resulting to the loss of significant employees who might be disappointed in
the process. This may be mitigated through strategic promotion in the organization.
Labor risk
The expansion may result to the need for more employees who might not be available. To over
the risk, the human resource department should conduct an efficient planning to determine
effective sources for recruitment.

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Action plan for risk mitigation
Risk Probability
of the risk
Extend of the
impact
Preferred
action.
Necessary
resources
Duration Responsible
personnel
Personnel for
monitoring
the process
Lack of
effective
criteria for
disaster
management
Medium Great
resulting to
stoppage in
production.
Disaster
management
plan
Backup
generator
15th
December-
20th
December
Operations
manager
Operations
manager
Increased
complexity in
processes
poor Great
resulting to
reduced
production.
Effective
training of
employing
Training
equipment
21st
December-
23rd
December
Technical
manager
Technical
manager
Strict labor
laws
High Great
enhancing
compliance
Increasing
employees’
wages
Performance
appraisal to
ascertain
performance
27December-
29 December
Human
resources
manager
Human
resources
manager
Talent loss Poor Medium
resulting to
talent loss
Effective in
execution of
change with
strategic
promotion
in the
1st -3rd Jan Human
resources
manager
Human
resources

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from the
organization
inclusive
approach
organization manager
Labor risk Medium Medium
resulting to
inadequate
acquisition
of
employees.
Determination
of sources for
recruitment
Formulation
of
recruitment
plans.
5th-10th Jan Human
resources
manager
Human
resources
manager

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Assessment task 3
Training options
a) Training the employees on the application of the theoretical knowledge to manage
complex organizational processes.
b) Career development opportunities among the employees which enhances promotional
opportunities especially in the management of new retail outlet.
c) Coaching the new employees to enhance skills acquisition which increases their
efficiency.
Relevance of training
According to (Philips, 2010) training has led to good results because most of the
employees are well acquainted with business processes which has in turn resulted to
improved production and profit maximization.
Risk management process report
The meetings that were organized to discuss on various ways of managing risks yielded
positive resulted because the team was able to analyze various risks and came up with
various ways of mitigating the risks as depicted in the action plan.

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References
Bessis, J. (2015). Risk Management in Banking. 4th Ed. New York, NY: John Wiley & Sons,
p.68.
Kumar, L. (2014). Financial Risk and its Mitigation. SSRN Electronic Journal, 4, pp.46-76.
Philips, R. (2010). Rapid Training Development. 3rd ed. John Wiley & Sons, pp.56-89.
Simonovic, S. (2012). Risk management. 3rd ed. Cambridge: Cambridge Univ. Press, p.46.
Valsamakis, A., Vivian, R. and Du Toit, G. (2010). Risk management. 3rd ed. Sandton:
Heinemann, p.45.