Risk Management Plan for JM Transport

Zane Thomson
S3711556
RISK MANAGEMENT PLAN
FOR
JM Transport
07-05-2018
Zane Thomson
07-05-2018
-1-

TABLE OF CONTENTS
Section 1 Introduction......................................................................................................... 3
What Is Risk Management?............................................................................................. 3
What are the benefits of a Risk Management Plan?........................................................3
The Legislative Framework.............................................................................................3
Section 2 Risk Management in JM Transport.......................................................................4
What are the main hazards and areas of risk that the organisation is exposed to?........4
Insurance........................................................................................................................ 4
Strengths/weaknesses of the current Risk Management Process....................................4
Section 3 Risk Assessment.................................................................................................. 5
Risk Identification............................................................................................................ 5
Section 4 Risk Treatment Plan............................................................................................ 6
Key Responsibilities and Timeframes..........................................................................6
Communication and Participative arrangements.........................................................6
Monitoring and Evaluation........................................................................................... 6
Zane Thomson
07-05-2018
-2-

Section 1 Introduction
What Is Risk Management?
Risk management is a process used to address the risks involved in a wide range
of activities, including financial, commercial and environmental risks. It is also
used to eliminate or minimise health and safety risks to people at workplaces.
What are the benefits of a Risk Management Plan?
Risk-management programs provide both the strategic basis and the operational
framework for handling crisis within your company, as well as providing a parent
policy for crisis management.
o Many of the real risks facing JM Transport cannot be extracted from
a textbook, a comprehensive risk management program leverages a
team of experts to identify and provide a deeper understanding of
all types of risks.
o Build a better defense to class actions. If JM Transport was to be
taken to court by an employee or an external entity, they often rely
on their ability to convince the court that the defendants have been
negligent. This is harder to prove when the company can point to a
risk management program that is in place to minimize these risks.
o Get credit for cooperation. Many regulatory agencies have policies
where they give credit to companies under investigation for having a
risk management program in place. Having the risk management
program in place at JM Transport, we want to make sure the risk is
not due to a systematic breakdown within the company.
o Reducing JM Transport’s liability, regulators and shareholders within
JM Transport increasingly view litigation risk as a business liability.
Reducing litigation risk upfront makes JM a more attractive
investment.
o Provides support and insights to the board of directors at JM, as
board members may find it difficult to identify risks outside their
areas of expertise and experience, a risk management plan provides
resources and advisory services to make them better able to
discharge their duties.
The Legislative Framework
Briefly describe the purpose of each of the following legislation areas and how they might
apply in the context of risk management in the organisation. You should name in full the
relevant act / regulation / code (e.g. 2004 OHS Act, Victoria) in addition to explaining
relevance to JM Transport’s risk management.
Zane Thomson
07-05-2018
-3-