Risk Management in Vodafone

Risk
Management

INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
TASK 1............................................................................................................................................2
1. Risk Management....................................................................................................................2
2. How risk management affects different business functions....................................................3
3. Evaluate the methods of assessing risk in business.................................................................3
4. Evaluate the approaches to managing risk in business............................................................4
TASK 2............................................................................................................................................5
1. Main drivers of business risk...................................................................................................5
2. Impact of the different types of risk........................................................................................6
3. Analysis of severity and likelihood of risk..............................................................................7
4. Suggested risk management strategies....................................................................................8
5. Approaches to crisis management...........................................................................................9
6. Impact of breaks in business continuity.................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
In the financial world, risk management involves the process of identifying possible risks in
advance, assessing them and implementing measures to reduce or mitigate risk (Baryannis and
et.al., 2019). This helps business owners to establish processes to prevent risks, mitigate their
impact, and at the very least assist with their negative effect. Vodafone is telecommunication
sector organization which is selected for the better understanding of risk management concepts.
It is UK based company which is founded in 1982 by Gerry Whent and Ernest Harrison.
This assessment covers the several topics related to risk management such as how risk
management affect the business functions, methods or approaches to manage risk. In addition, it
also covers the others factors like key drivers of business risk, impact of different types of risk
and analysis of likelihood. This report also suggest some risk management strategies which helps
the organization to reduce the impact of risk on their operations, approaches for crises
management and impact of breaks in business continuity.
MAIN BODY
TASK 1
1. Risk Management
It's also the method of detecting, evaluating and managing the risks to the resources and
profits of a company. These challenges or risks may emerge from a multitude of sources, like
financial instability, legal obligations, strategy implementation mistakes, natural disaster. IT
security issues and data protection risks, as well as risk management techniques helps
in to resolving them and these are becoming a top concern for digitized businesses (Behzadi and
et.al., 2018). As a result, the risk management strategy increasingly covers the processes of
organisations detecting and managing risks to their digital properties, including confidential
business data, personally identifiable information (PII) and intellectual property. Any corporation
and organisation faces such risk of unforeseen, adverse incidents that could lead to expensive or
allow it to close forever. Risk management helps companies to try to plan for the unforeseen by
mitigating risks and additional costs while they occur.
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2. How risk management affects different business functions
The effect of risk management is to identify potential issues before they arise, so that
threat-handling measures can be regarded and apart, as necessary, diagonally from the presence
of an outcome or creation in order to minimise negative effects on the achievement of objectives.
Effective risk management involves pre-time and disruptive risk detection during in the team
effort and involvement of relevant stakeholders, as defined in the Stakeholder Participation
Agreement in the District Development Preparation Procedure. Strong management throughout
all relevant stakeholders is needed to make a free and accessible risk exploration and discussion.
Although practical problems are fairly committed from the beginning and come across all
phases of the project, risk management must trust both within and without sources for expense,
plan and minimal risk. Unfortunately timed and disruptive risk exploration is important as it is
inherently simpler, less expensive, and less messy to make improvements and to do the right
work quickly during the prior stage of growth, compared to the current one. Risk management
can be divided into 3 areas: the basic risk management strategy, identification and analysis of
risks and the implementation of defined risks and, where appropriate, the implementation of risk
action plan.
3. Evaluate the methods of assessing risk in business
There are several methods which can be followed by the Vodafone in order to assess the
risk which they can identify in their business (Risk assessment method, 2015). With the help of
such methods, managers are able to identify risk and make action plan accordingly to mitigate
such risk. Some of the risk assessment methods are as follow:
 Using a "what-if" scenario to define risks and threats. What-if concerns are asked
something could go wrong and what might happen next if things were going incorrect.
This type of study is a brainstorming exercise which is conducted by those people who
have experience of locations, procedures and processes that could be subjected to
dangerous incidents and circumstances.
 Using a "checklist" of documented risks and hazards to classify the hazards and threats.
The importance of this form of review depending on the consistency of the assessment
and the interpretation of the collected data.
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