Risk Management Plan Assignment 2022

1
Risk management plan
Student Name
(Affiliation institution)

2
Part A
Introduction
The main aim of the paper is to develop a risk management plan for the WalMart
Company which is an American multinational retail corporation that operates a chain of grocery
stores, discount department stores and hypermarkets. The company was founded in 1962 by Sam
Walton and it is headquartered at Bentonville, Arkansas (Torres, Garcia-French, Hordijk &
Nguyen, 2012)
The risk management plan for WalMart Company
Stakeholder analysis
In a risk management context, Stakeholders are organization, groups or individuals that
are impacted by action plan of a risk management. The stakeholders of Walmart Company are
divided into two categories consisting of internal stakeholder and external stakeholders. Internal
stakeholders are individuals within a business who are affected by the performances or
operations of an organization. The internal stakeholders include employees, board of directors,
managers, supervisors and owners of the company. External stakeholders are individuals who are
not within the business although they are influenced by its performances and operations. External
stakeholders of Walmart include suppliers, customers and investors.
External and internal stakeholder analysis
stakeholder Classification Interest and their impacts on the organization
Employees Internal stakeholder High interest and high impact
Board of directors Internal stakeholder High interest and high impact
Managers and supervisors Internal stakeholder High interest and high impact
Owner of the Walmart Internal stakeholder High interest and high impact

3
Investors External stakeholder High impact and low impact
customers External stakeholder Low interest and high impact
Suppliers External stakeholder High interest and low impact
Explanation of the risk context
A risk is something which might happen in the future. Risk context addresses group and
individuals’ behaviours and attitudes that may impact the way risks arise. The risk context
involves risk attitudes and risk appetite of the Walmart external and internal stakeholders. The
risk attitude affects the way the external and internal stakeholders develop response to risk and
how they will react when a risk event emerge. The two types of risk attitudes that will impact
Walmarts stakeholders include risk averse and seeking. A risk averse attitude will be useful for
the Walmart Company as it helps the concern stakeholders to provide insight of why some
situations are considered by the company more risky as compared to others. The risk appetites
involve amount of risk Walmart Company is prepared to encounter in order to achieve its
objectives. Walmart’s Board of directors will have to understand clearly the risk appetite of both
internal and external stakeholder in order to make sure they are managed in a manner which is
compatible with their risk appetite. For example, to meet some objectives, procedures and
policies will be delivered quickly but involving high-risk level which is acceptable to the
stakeholders who are not risk averse but risk-taking.
Critical success factors
Critical success factors (CFS) are factors that have an influence on readiness and inclination
an organization to implement a risk management plan. The critical success factors of Walmart
risk management plan will involve trust, functional organizational structure, information

4
technology, communication, commitment and effective support from strategic managements
such as the company owner, managers and supervisors.
Identified and analyzed risks
Walmarts Company faces diverse risks which can be grouped in terms of political, social,
economic, legal, technological and environmental. Environmental risks of the Walmart Company
include risks from natural events such as floods, hurricane, global warming and earthquakes. The
political risks include risks such as political instability and change in government policies. The
economic risks include risks such as economic circumstances and scenarios like inflation,
exchange rates, manipulation of interest rates by federal government and recession. Social risks
include individual activities such as social relationships, injuries in the workplace, change in
consumer patterns leading to losses and human behaviour. Legal risks include risks from
legislation such as permits and high cost of regulatory compliance. Technology risks include
risks such as system failures and computer errors.
Treatment for prioritized risk
The risks are prioritized depending on the impact they have on the company. The risks
with high level of impact will be treated first while the risks with low impacts will be treated last.
Risks with high impact are like natural disasters and risks from regulatory framework such as
non- compliance which may lead to the termination of Walmart Company if not prioritized.
Details of the monitoring arrangement
All the risks identified will be recorded on the risk register. The risk manager will review
the identified risks and further document any event or action that might change the risk status.
For example, the risk manager may document a new risk that has been identified and changes it
to an evaluation of risks due to control improvements. For effective controls, near miss and the

5
controlled breach will be logged at the time of event. The partners also should review the risks
register frequently in order to determine whether there are any remedial actions needed.
Evaluation of the risk management plan efficiency in treating risks
To evaluate the effectiveness of the risk management plans in treating risks, a stakeholder
assigned a task of carrying out risk management plan will keep on a note of all activities and the
events surrounding a risk management plan. The risk assessor will assess whether the problems
arising from the risk management plan have a serious impact on the plan. If they have serious
impact then the risk management plan will be considered not effective. Alternatively, the risk
manager will match the objectives of risk management plan with objectives. If the pre-defined
objectives are in line with outcomes of a risk management plan, then the whole process of
conducting risk assessment plan will be effective. The risk manager will also conduct an
evaluation of all activities in the plan to determine the degree to which they are effective. The
evaluation will involve conducting a thorough investigation of all activities and discovering the
flaws. If there are many flaws then the risk management plan will not be implemented
effectively.
Forms for implementation of risk management plan within the workplace
Risk assessment forms for Walmart Company
Name of the concerned person conducting risk assessment:
Date:
Procedures being expected or activities
Expected or known risks and hazards associated with activities

6
Possible consequences
What are the expected consequences which might occur after the risk?
What is the likelihood of occurrence of risk? E.g. very high, high, moderate, low and very low
What is the possible severity of the risk? E.g. catastrophic, very high, high, moderate, low, very low.
Which stakeholders are they at risk? e.g. is it employees, customers, managers or suppliers
What measures should be taken by the company to lower the level of risks or eliminate potential
hazards that lead to risk?
Are the control measures failing? What are the consequences or risks of control measures failing?
Learning needs and training requirement for the concern stakeholders
What is the risk levels remaining?
What action should be taken in case of occurrence of risk or emergency?
Reference if necessary or any
Name or signature of the person conducting the assessment.
Evaluation risks
Risk Likelihood Impact
Social risks like change in human
behaviours, activities and Employee injuries
Very high (9) Low (3)
Natural Resources like floods, earthquakes
and hurricanes
Very low (0) Catastrophic (10)
Political risks like social relationships and
political instability
Moderate (5) High (9)
Technology risks include risks such as Low (1) Moderate (5)

7
system failures and computer errors.
Legal risks include risks from legislation
such as permits and high cost of regulatory
compliance
Moderate (4.5) Very high (9)
economic risks include risks such as
economic circumstances and scenarios like
inflation, exchange rates, manipulation of
interest rates by federal government and
recession
Moderate (4.5) High (8)
Risks which are most significant and are therefore priorities for treatment
Political risks are the most significant and therefore need to be prioritized. The likelihood
of the risk occurrence is moderate or neutral (5) however the impact that Walmart may
experience when it occurs is very high. The political risks may eventually lead to huge losses of
business or closure of business. For example, during political instability period consumers are
likely to migrate from their own location. Economic risks like inflation and recessions also need
to be prioritized. The risks associated with the economic environment is moderate (4.5) however
whenever it occurs may contribute to an organization incurring huge losses. For example, during
the inflations and economic recession period, consumer patterns may change and customers
spend very less on Walmart products. Legal risks also need to be prioritized for treatment. The
likelihood of the risk occurrence is moderate although the impact is very high. Legal actions such
as change in policies and non-compliant to regulations may lead to termination, suspension or a
company being fined.

8
Action plans
Risk Action required Responsible
stakeholder
Timelines Monitoring
process
Social risks such as workforce
injuries, human activities and
human behaviour
-ensure their conducive
environment for working
- removing physical
hazards causing injuries
employees 2 weeks -conduct survey about
hazards and monthly
risks levels after every 3
months
Economic risks -monitoring the current
trends in the market,
-allocation of extra capital
to cater to rise in taxation
and interest rates.
Finance officer 1 month Checking the annual
financial statement to
assess the change in
economic environment
Legal risks -staying compliant with
diverse government
policies
-ensuring environmental
sustainability
Organizational
advocate
1 month -check after every
month where the
company is compliant to
all policies.
Technological risk -Keeping the ERP system
of the company updated
on all time
-installation of firewalls to
make sure the confidential
documents are kept away
ICT personnel 1 month -checking for latest
updates or new
technologies after every
month

9
from unauthorized people.
PART B
Risk assessment of a classroom
Activity Risk Hazard Impact Likelihood Action required outcome
Walking
around the
classroom
-fall Slippery
floor
High (7) Very high
(19)
-Ensure the class is
dry and there are not
wet fluids on the
floor which can lead
to slippery
Reduced
significantly the
number of falls
which could lead to
injuries and fractures
Interfering with
sockets and
bulbs.
electrocuted Open electric
cables
Catastrophic
(10)
low -making sure all
electricity cables are
well insulated
-avoid overloading
of circuits
-making sure plugs
and power cords are
in good conditions
-reduced or no case
of a student being
electrocuted
-moving around
the shelves
looking picking
books and pens
-shelves and
cabinets
falling on
students
-minor
injuries and
Overloaded
of shelves,
books and
cabinet
-improper
storage of
Low (2) Low (2) -repairing of old
shelves and cabinets
-allocating a specific
room for storing
bookshelves and
-very low cases
regarding accidents
caused by office
materials such as
shelves and cabinets

10
fractures office
material
cabinets.
- use of wall-
mounted shelves and
other built-ins
-anchoring of
shelves to prevent
tipping.
References
Torres, C. A. C., Garcia-French, M., Hordijk, R., & Nguyen, K. (2012). Four Case Studies on
Corporate Social Responsibility: Do Conflict Affect a Company's Corporate Social
Responsibility Policy. Utrecht L. Rev., 8, 51.