RISK MANAGEMENT IN ORGANIZATIONS.

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

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RISK MANAGEMENT IN ORGANIZATIONS
1. Introduction to the organization
1.1 Background and structure of David Jones
The concerned organization, David Jones is an Australia based upmarket departmental
store. The concerned store was established in the year 1838 and since then the continuous
innovations on the propositions that are made by the same supported the sustenance and growth
of the venture in the Australian markets (Davidjones.co., 2020). It has been noted that the
Adelaide Steamship Company acquired a substantial interest in the concerned organization in the
year 1980. Later, the organization encountered a takeover by the retail group Woolworths Group
(Miller & Merrilees, 2016). The organization is controlled through a centralized structure where
the hierarchy of management plays an authoritative role in monitoring, controlling and
strategizing on the future steps that might be considered by the venture for surviving the intense
competition in the markets from the competitors and the other brands of Woolworths in
Australia. The current organizational structure helped the organization in monitoring over the
different processes n accordance with the changing demand of the customers.
1.2 Mission and objectives of the venture
The current organization is focused towards proposing quality offerings to the customers
with the purpose of increasing the sales revenue while retaining the commitment of the
consumers (Xu, Gao & Hammond, 2017). However, the concerned organization encounters
certain risks that might restrict the capability of the same in improving the quality of the
propositions while adhering to the changing preferences of the customers.

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RISK MANAGEMENT IN ORGANIZATIONS
1.3 Gaps in risk principles
The gaps in the risk principles of the concerned organization are related to the absence of
continuous and ethical reporting of the risks in compliance with the standards. The lack of clear
identification, representation and reporting of the risks in the organizational framework might
influence challenges in maintaining the continuity of the different operations in adherence to the
demand of the customers.
2. Stakeholder assessment
2.1 Internal stakeholders and External stakeholders
The stakeholders play an important role in improving the performance while influencing
their growth and opportunities for the business. In this connection, the internal stakeholders of
the concerned organization, David Jones, are the hierarchy of management, employees,
managers and line managers (Davidjones.co., 2020). The internal stakeholders play an integral
role in meeting the organizational objectives while acting as per the common interest of all the
stakeholders. On the contrary, the external stakeholders of the concerned organization are the
investors, shareholders, suppliers, government and the customers (Davidjones.co., 2020). The
external stakeholders influence the operational criteria and helps in developing an idea on the
success factors of the venture. The confluence of the internal and the external stakeholders and
the collaborative functioning of the same allowed the venture in achieving the common
objectives of the same.
2.2 Potentials risks and business objectives
The potential risks that are being faced by the organization are related to the growing
intensity of competition in the departmental store markets in Australia. The different

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RISK MANAGEMENT IN ORGANIZATIONS
technological innovations that are made by the competitors of the venture might restrict the
competitive vantage point of the concerned business. On the other hand, the rising cost of
operations and marginalized income of the organization might threaten the sustenance of the
same while operating in the Australian markets (Needham et al., 2020). One of the most
potential risks that is being confronted by the concerned organization is through the growth of
the online retailers and the e-commerce operations of the businesses. The changing preferences
of the customers towards the e-commerce platforms have encouraged significant changes in the
market economy of Australia while influencing the growth of different online e-commerce
platforms. The growing threat of e-commerce and online retailing implied the diminishing sales
volume of the concerned organization while operating in the Australian markets. Therefore, the
organization is planning to diversify its distribution channels through the adoption of the Omni-
channel distribution system (Bailey, 2020). The application of the Omni-channel distribution
might be considered as one of the emerging business objective that has been created by the
venture with the purpose of retaining its brand image.
2.3 Assessment of the internal risk environment
Strengths
 Brand image as the oldest operating
departmental store in the retail sector of
Australia
 Wider variety of international value
propositions and service offerings
 Competitive pricing strategy for
national and international brands
Weaknesses
 Weak financial position in the markets
 Increasing cost of labour and
operations leaving minimized margins
annually
 Lower rate of R&D operations