Implementing Risk Management Strategy and Operations Improvement in Toyota

INTRODUCTION TO
BUSINESS OPERATIONS
AND SERVICES

TABLE OF CONTENTS
1)Implement risk management strategy ......................................................................................3
2) Explain how you would introduce a company wide operations' improvement strategy. This
improvement strategy must include the tools and techniques that you have learned in this
module. ........................................................................................................................................6
REFERENCES .............................................................................................................................11

1)Implement risk management strategy
Toyota company should implement the risk management strategies because identified the
various risk that occur in the business operations, causes damages with the Toyota group assets,
ensure management safety and increase corporate values. The business face various issues such
as quality in vehicles, auto line-ups, competitors issues which affects the business profitability
and its revenues. Earthquakes which affects the business economics and building were also
damages of company. This also affects the productivity and profitability of business.
Importance of risk management strategies
Risk strategy management are most important for business to identify and reduce the
uncertainty that can affects the business in the future. The success for business is arrived by
crucial and rarely arrives by chances. If business will ignore the risk management in business
than it can occur the failure chances of business (Shad, 2019). Risk management strategy helps
business to identify the solution and safety of risk and workplace safety hazards. For example:
Toyota company face the disaster challenges and it damages many people and workers within the
organization so, business need to manage the risk with management such as workplace safety
hazards. It also helps in reduce the losses and expenses of business because risk expenses and
income risk directly affects the financial condition of business as well as also affects the business
productivity and profitability. The risk management strategy also helps in improve the business
reputation as well as it helps in improve the confidence of employees and leadership capabilities
for having the safe workplace to boost morale. Toyota company should implement the risk
management strategy because that is bigger to exposure to risk such as natural disaster risk and
risen of better competition. However, that's why risk management strategy are important in
business.
Process of risk managements
There are process to manage the risk within the organization through risk analysis and it
is a qualitative problem solving approach for business and risk management process includes
identify existing risk, assess the risk, develop an appropriate response and develop the preventive
mechanisms for identified risk (Ritchie and Jiang, 2019). Firstly, Toyota business needs to
identify the risk which affect the productivity and profitability of organization. The business
should identify risk in order of priority and there is not possible to mitigate the whole risk of
business. Toyota faces the earthquake problems and it creates the humanitarian crisis and

building damage, business also face the quality issues in products and services as well as it affect
the competitive advantages of business. Toyota company also need to improve the auto line-up
for the long term profitability.
After that the company need to assess the risk, it means business needs to identify the
appropriate solution for identifying problems as well as figure out with find the best solution for
risk (Hopkin, 2018). The business can improve the quality of products and services and also it
helps in improve the competition of business. Company can make insurance for business
building and assets to recover damages after any disasters. In the next step business need to
develop the appropriate response for business with the mitigate the identified risk and prevent
business with challenges. Toyota business can also develop the preventive mechanisms for
identified the risk that can be deployed in the business future.
The company implement the risk management strategy within the organization to
mitigate the business challenges and its issues. The risk management strategy is the part of risk
management life-cycle. Toyota face various risk and business needs to decide that which
strategies are suitable for business challenges. There are various risk management strategies such
as risk acceptance, risk avoidance, risk reduction and risk transference. The risk management
strategies are also known as the risk treatments options. The company should choose one risk
management strategy from this strategy to mitigate the risk and challenges which face by Toyota
business within the organization such as quality issues, competitors problems, disasters issues
and auto line-ups (Yang, Ishtiaq and Anwar, 2018). The business need to adopt the risk
management strategies for effectively managing risk within the organization with various
benefits such as business continuity, operational effectiveness, helps in business asset's
protection, enhance customer satisfactions and loyalty, it helps in realizing the business benefits
and achieve the goals and objectives of Toyota company. Risk management strategies are also
mattered for all the employees within the organization so, business need to manage the risk for
everyone,s its helps in make job safer's, it helps in reduce the unexpected events, it helps in
create the financial benefits, it helps in save time and efforts, improve the communication
process within the organizational reputational issues, it is beneficial for the organizational culture
and also helps in guide decision-making process of business.
In the context of risk acceptance, this approach not able to reduce the risk and its impact.
Third risk strategy helps in mitigate the risk of budget and cots of mitigation risk. Risk can occur