Risk Management Policy of Town and Country Services

This document discusses the risk management policy of Town and Country Services. It covers the identification of external risk factors, stakeholder identification, PESTL and SWOT analysis, risk assessment table, action plan, communication protocol with stakeholders, tools for risk identification, risk analysis, and risk management strategies.

Running head: RISK MANAGEMENT OF TOWN AND COUNTRY SERVICES
RISK MANAGEMENT POLICY OF TOWN AND COUNTRY SERVICES
Name of the Student
Name of the University
Author note

1Risk Management
Part 1:
Elaboration of business objectives:
Risk management of any business structure is an important aspect as sometimes the
occurred risk factor can cause a significant impact on the performance of that business
platform. In order to enhance the business progress and opportunities Town and country
services has taken a step to effectively deal with those risks (Sadgrove 2016). There are
various risk present in a business platform, whose rectification is done by Town and Country
services.
Those risk are listed below:
 IT and Security Risk Factors.
 Operational Risk Factors.
 Compliance Risk Factors.
 Economical and Market Position Risk.
Identification of external risk factors:
While analyzing the risk factors in any business platform it has been observed that
there are two types of risk factors, one is Internal Risk Factors and another one is External
Risk Factors (Vijayakumar 2017).
The brief discussion about External Risk Factor is described below:
Followed by the investigation it has been observed that the external risk occurs due to
financial, political and natural problems which appears from the outside of corporate module.
Elaboration of these risk factors are described below:
1) Financial Risk Factors: This type of risk occurs when any organization faces
economical breakdown lead to any sudden market loss.

2Risk Management
2) Political Risk Factors: Due the change of Government rules or political
circumstances this types of risk occurs. Dynamic regulation of government rules are
very much risky for any type of business field, those rules includes the change of
interest rate, tariffs, import/export laws and others (van den Born 2013).
3) Natural Risk Factors: These types of risk occurs when any kind of natural disaster
takes place, as an example Earthquake, storm which an damage or effect the physical
structure of any business.
Stakeholder’s identification:
Stakeholder is an individual with a concern to any organization, which can have a
positive or negative impact on the business, thus it is necessary to identify right stakeholder
in order to protect the business from any kind of risk occurrence (Falkner 2015). In order to
identify right stakeholders Town and Country services offers several steps which are listed
below:
Step 1: Find a person or population who is effected by this business, no matter whether it is
positive of negative.
Step 2: Find someone who can lead this business to the top or can make it to fail.
Step 3: Find the Financial Decision Maker.
Step 4: Investigate the supplier’s sources.
Step 5: Investigate the Clients requirement.
Step 6: Find the dominator.
Step 7: Find who can solve the problem effectively.
Step 8: Find the specialist who can help to enhance the business.

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After following these queries it can be determined that which stakeholder has higher priority
and who has the lowest, thus this investigation will be beneficial in order to analyze the role
of stakeholders in a business.
PESTL and SWOT analysis:
In order to analyze the threats Town and Country services has adopted two types of
analysis technique which includes PESTL analysis and SWOT analysis.
PESTL analysis stands for P- Political, E- Economical, S- Social, T- Technological,
E- Environmental, L- Legal. It is a type of frame work which identifies the threats by
analyzing the external risk factors. Hence, Town and Country Services has included this
technique into their Risk Management Policy in order to identify and reduce the business
threats (Anderson 2013).
Figure: PESTLE analysis
Source: (Cadle 2014)
According to (Yuan 2018) SWOT analysis stands for S- Strength, W- Weakness, O-
Opportunity, T- Threats. The SWOT analysis frame work is introduced to analyze the
internal factors in order to recognize the business threats. The first two step such as Strength
and Weakness of SWOT analysis is used to investigate the internal factors and the last to step
Opportunity and Threats are used to analyze the external resources. Hence, in order to rectify

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the business risk factors Town and Country Services has adopted this approach to their risk
management policy.
Figure: SWOT analysis
Source: (Yuan 2013)
Risk assessment table:
Risk Assessment

5Risk Management
Risk Priority Risk Rating Action Plan
1. Financial risk factors caused by
govt. Tax policy or export-import
policy.
4.5 Developing a solid plan, performing
tests for quality control, keeping
records, limiting the loans,
diversifying income, buying
insurance and saving money.
2. Legal environment risk factors
caused by the govt. set of rules and
regulation which affects the
business operations and structure.
4.3 Regulatory bodies and their
processes and maintaining the law of
employment
3. Technological risk factors caused
by technical failure or technology
up-gradation.
4.0 Use of updated operating systems
4. Social risk factors caused by social
values, traditions and beliefs.
3.0 Good understanding of the power of
local structure and stop violating the
human rights within the work force.
5. Demographical risk factors. 3.0 Adaption of business model to the
market which is local, proper
recognition of the differences in
regions and adaptation of practices of
management
Risk matrix
Likelihood
Rare Unlikely Possible Likely Almost Certain
Consequ 1. Insignificant
2. Minor
3. Moderate 4 5

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ence
4. Major 2
5. Extreme 1 3
Risk management table:
Risk Assess Risk Controls Monitoring Timelines Responsible
Financial Risk
factors.
Because of the
change of Govt.
Tax rules and
export rules as
well as for the
product failure
and not
performing a good
role in market
financial
dropdown occurs.
A solid plan
development,
performing
tests for
quality
control,
keeping
records,
limiting the
loans,
diversifying
income,
buying
insurance and
saving
money.
Keeping a
continuous
track and
check if
there is any
kind of
dropdown
in finance.
15days
Financial
manager

7Risk Management
Legal
Environment
Risk.
This problem is
caused by the set
of rules and
regulation that are
dynamically
changing in case
of operational and
structural business
framework.
Regulatory
bodies and
their
processes and
maintaining
the law of
employment
Checking if
all the rules
and
regulations
are
followed.
20days Human
resources
department
Technological
Risk.
In case of any
technical failure
this types of risk
occurs.
Use of
updated
operating
systems
Checking if
there is any
technical
failures or
not.
15days IT and
mechanical
technicians
Social Risk
Factors.
This types of risk
factors are caused
by when the social
emotions and
values are affected
by the any
organization.
Good
understanding
of the power
of local
structure and
stop violating
the human
rights within
the work
force
Checking if
the social
emotions
and values
within the
organization
is
maintained.
20days Manager
Demographical
Risk Factors.
This types of risk
factors occurs
when the business
or organization is
dangerous or
impactful for any
area.
Adaption of
business
model to the
market which
is local,
proper
recognition of
the
Checking if
the
organization
does not
become
dangerous.
5days Manager

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differences in
regions and
adaptation of
practices of
management
Action plan:
A Town and Country Services Company is currently focuses on identification and
managing the risks in a regional expansion project. The company executives have identified
certain functional, financial and strategic risks those are required to be mitigated. The risk
management plan includes detail stakeholder analysis, risk treatment, reporting mechanism
etc. In order to implement a risk management plan for the company an action plan in
prepared and the details of the action plan in elaborated in the below section:
a) Firstly, the risk management process that has been developed needs to be known to some
of the project team members. For this specific project the people who will need to know the
risk management process include project manager, resource manager, finance manager,
security manager, operational manager, system developer, tester and system designer.
b) The entire risk management plan should be documented in the company server with
needful protection mechanism in terms of encryption, firewall, DMZ. The information those
are stored in the server will be easily available and can be accessed regardless of the time and
location y the consumers.
c) In order to evaluate the risk management on the ongoing basis, the processes those are to
be followed include:
 Defining the actual problem associated to the Town Service Company
 Collect and analysis of all needful information

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 Clarification and prioritization of the problems
 Preparing the project goal statement
 Implementation of final solution for the action plan
 Risk management plan monitoring and evaluation
 Restart with a new problem or else refining the older risk
Report on action plan:
The conducted action plan has covered all the desired needs of the risk assessment
process, and successfully provided the company a best solution.
Used Resources:
a) Information Sheet: Recognition and Elaboration of Risk.
b) Information Sheet: Risk assessment Policy
c) Information Sheet: Risk Management framework.
d) Information Sheet: Risk Control and action.
e) Enterprise risk management framework.

10Risk Management
Part 2:
Establishment of the communication protocol with Stakeholders:
After the identification of the business stakeholders it is necessary to communicate
and consult the risk factors with them, thus the Town and Country Services should follow a
specific communication protocol in order to ensure that the stakeholders are able to
understand the business goals and objectives. In order to have the highest engagement from
the stakeholders it provides the regular updates and progress report to the possible
stakeholders (Martínez 2013).
There are several communication protocol present in the field of stakeholder’s
communication, but the Town and Country Services should selected the Purposeful
Communication method in order to communicate with the stakeholders effectively.
According to (Cox 2014) the concept of this Purposeful communication method is to
concentrate on the important stakeholders with proper information and report. The main
purpose of this method is to strategies which decision should be taken in order to make it
highly effective. This generally offers the effective decision which demands the stakeholder
to start or stop doing something for the betterment of business effectiveness.
The tactics which are conducted to make it better are listed below:
 Mutuality approach: This approach offers the organization to relate their needs with
the stakeholders need. It follows the WIFM method (what is in it for me).
 WIFMF (What is in it for my friend): This approach follows the concept in which it
should be monitored that whether there is any benefits for the stakeholder’s friends or
colleagues.

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 It creates a network to stay connected with all the stakeholders.
 It contains the secure plan to deliver information among all the stakeholders.
Following these tactics the organization will be able to rectify there risk factors following the
reviews and suggestions of the stakeholders.
Tools for risk identification:
The above diagram is fishbone diagram, and the Town and country services has should this
risk identification tool to identify the possible threats.
Financial risk factors Legal Risk factors
Social Risk factors Demographical Risk Factors
Govt. Tax
Product failure
Effect of traditional
Religious emotion
Export-import rules
Govt. service rules
Area position
Impact on population
Higher rate of
business risk.

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Risk Analysis:
S
Strengths
W
Weaknesses
O
Opportunities
T
Threats
Ability to
create products
which are
unique
Provide high
level of
customer
service
Staffing a
training
Lack of resources
Lack of capabilities
Limiting the ability to
compete with smaller
companies
Chance in improving the
performance
Improving the
competitive advantage
Individual outside the
company
Group outside the
company
Products which are new
from other companies
Regulation of government
By this above risk analysis strategies these risks can be identified. And by managing these
can help to provide the stake holders an effective business service. The management
strategies are mentioned below:
 A solid plan development, performing tests for quality control, keeping records,
limiting the loans, diversifying income, buying insurance and saving money. Keeping
a continuous track and check if there is any kind of dropdown in finance.
 Regulatory bodies and their processes and maintaining the law of employment.
Checking if all the rules and regulations are followed.
 Use of updated operating systems. Checking if there is any technical failures or not.
 Good understanding of the power of local structure and stop violating the human
rights within the work force. Checking if the social emotions and values within the
organization is maintained.

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Risk Management Strategies:
Above mentioned strategies are best in order to mitigate the business risk. As these
risk management policy uses the best threat analyzing process and also analyzes how the
stakeholders are affected by these risks.

14Risk Management
Stage One: Establishing the risk context and identifying risks
1. Context
Political factors:
Political factors are considered to be mainly those factors which involves usually
some things which are seen to have a great impact on the business organization which is
provided by the government or any standpoint which is legal. These political factors are quite
similar to both the legal as well as social factors but there is a little difference because
political factors often seem to change a lot. Some political factors include income tax or other
taxes, influences which are union, laws of wages which are minimum and policies which
belongs to federal, state or local environment.
Economic factors:
Economic factors are mainly the fluctuations which are financial and are typically not
under control. If an example is taken it can be seen that sometimes interest goes down which
means that the business loan is costing much more in the last year as compared to that which
will be in the current year. Some economic factors include rates which are inflated, debt of
the company, potential customers which are included in the area and salary trends of
employee in the organization.
Social factors:
Social factors mainly refers to all the norms as well as attitudes of any culture of the
demographic which is targeted and also that of the employees and several competitors within
the organization. Some of the social factors which are seen to be having impact on the
success of the project include the age of the customer, norms and traditions of the culture,

15Risk Management
growth or the declination of population, attitudes of the career of service, influences of any
religion as well as the health and safety of the public.
Technological factors:
Technological factors are mainly those which have an impact directly on the expense
of performing several operations within the organization and maintaining efficiency within it.
Some technological factors mainly includes opportunities which are automated, incentives of
technology like the credits of tax and equipment which provides better services. If
technological trends are seen have been lagging behind or using equipment which are already
outdated and properly examining the barriers which are technological then the business may
fail to enter into the new market.
The strengths and weakness of any existing arrangements:
The status of the existing management of risk are mainly the starting position which
are logical for any kind of review or change. There is a need for the organization to determine
properly how the management of risk is doing well currently. The SWOT analysis is
considered to be a tool which may help the organization in focusing on the strengths,
lowering the weaknesses and finally taking advantage of all the opportunities by reducing all
kinds of threats faced by the organization.
2) Scoping
SCOPE: Product innovation
OBJECTIVES: Instrument for increasing competitiveness of business
Creation of conditions for enhancing the research of the
contribution of system towards the economic development as well
as social.
Stimulation of significant increase in investing in technological
research privately.

16Risk Management
Stimulation of the development of innovations which are
technological.
Enabling business for associating with the researchers in an
environment which is academic on the projects based on
technological innovation
CRITICAL
SUCCESS
FACTORS:
Technological innovation
SCOPE: Actual product which is tangible including the features or the
characteristics of the product itself
OBJECTIVES: Promotion of products to all the potential customers.
Promotion of services to all the consumers within a specific frame of
time.
CRITICAL
SUCCESS
FACTORS:
New Products or services
SCOPE:
Defining new market and try to be a competitive one.
OBJECTIVES: Increase in sales and building awareness of brand.
Growing share of market and launching of new products.
New customers targeted
Improvement of the relation of stakeholders.
Enhancing the relationship with the customers.
Increasing profit
Improvement of the internal communications

17Risk Management
CRITICAL
SUCCESS
FACTORS:
Opening new markets
SCOPE: Production of product and completion of project
OBJECTIVES: Providing a command chain
Improving efficiency
Proper controlling and maintaining uniformity
CRITICAL
SUCCESS
FACTORS:
Organizational structure
3) Stakeholders
Stakeholder Internal /
External
Role in process Stake in process
Clients or
customers
External Communication with the
providers and providing
feedbacks
Main communication
needed between them
and the suppliers
Suppliers and
contractors
External Provides business with several
products or services
Providing products to
the customers
Internal
personnel
Internal Dealing with the management
of the employees by providing
employment, growth and
training.
Managing employees
A project
funding body
Internal Responsible for initiating,
executing and controlling
Designing and
monitoring properly

18Risk Management
successfully.
Employees Internal Have specific roles of business
as well as responsibilities
within the business organization
Main building block of
the organization
Government External Enforcement of contract,
protection of employee,
taxation, protection of investor
Providing protection to
the employees and
investors
Owners Internal Managing risk and execution of
project
Risk management
Union Internal Resolving issues within
workplace as it forms the voice
for employees
Voice for all the
employees

19Risk Management
Relevant parties Support
All staff Providing input into several activities of risk
management, assisting in risk identification and
conduction of the assessments of risk.
Internal and External Stakeholders Providing varying perspectives on risks which are
potential and managing risks.
Specific teams Providing input into several management activities of
risk, assisting in risk and control identification,
Technical experts Planning, designing and implementation of the
management of risks
4) Analysis
P
Political
E
Economic
S
Social
T
Technological
L
Legal
 Tax or other
taxes
 Influences
which are
union
 Laws of
wages
 Rates which
are inflated
 Debt of the
company
 Potential
customers
which are
 Age of the
customer
Norms
and
traditions
of the
 Opportunitie
s which are
automated
 Incentives of
technology
like the
 Employmen
t law
 Consumer
protection
 Industry-
specific

20Risk Management
which are
minimum
 Policies
which
belongs to
federal,
state or
local
environmen
t
included in
the area and
salary trends
of employee
in the
organization
.
culture
 Growth or
the
declinatio
n of
population
 Influences
of any
religion as
well as the
health and
safety of
the public.
credits of tax
 Equipment
which
provides
better
services
regulations
 Competitive
regulations
 Current
legislation
home
market
 Future
legislation
 Regulatory
bodies and
their
processes
Environmental
regulations
S
Strengths
W
Weaknesses
O
Opportunities
T
Threats
Ability to Lack of resources Chance in improving the Individual outside the

21Risk Management
create products
which are
unique
Provide high
level of
customer
service
Staffing a
training
Lack of capabilities
Limiting the ability to
compete with smaller
companies
performance
Improving the
competitive advantage
company
Group outside the
company
Products which are new
from other companies
Regulation of government
5) Research:
In order to establish the risk context and identification policies of Town and Country
services several steps has been followed. In first step the establishment of the risk context has
been done which are very much impactful for business platforms. In the next step the
identification of project objectives has done and the rectification of the risk are described.
Followed by the above steps it has also includes the stakeholder identification and the role of
stakeholders in the business platforms. Lastly in this stage it has analyzed the risk factors by
two analysis tools which are PESTEL and SWOT analysis. This step will help the
organization or business platform to identify the highest priority stakeholder and will also
help to recognize the business threats which has been observed by the analysis tools.
Stage Two- Analysing the risks
Risk Assessment Table:

22Risk Management
Risk assessment
Risk/Priority Risk
Rating
Action Plan
1. Financial risk factors caused by
govt. Tax policy or export-
import policy.
4.5 Developing a solid plan,
performing tests for quality
control, keeping records, limiting
the loans, diversifying income,
buying insurance and saving
money.
2. Legal environment risk factors
caused by the govt. set of rules
and regulation which affects the
business operations and
structure.
4.3 Regulatory bodies and their
processes and maintaining the
law of employment
3. Technological risk factors
caused by technical failure or
technology up-gradation.
4.0 Use of updated operating systems
4. Social risk factors caused by
social values, traditions and
beliefs.
3.0 Good understanding of the power
of local structure and stop
violating the human rights within
the work force.
5. Demographical risk factors. 3.0 Adaption of business model to
the market which is local, proper
recognition of the differences in

23Risk Management
regions and adaptation of
practices of management
Likelihood
Rare Unlikely Possible Likely Almost

24Risk Management
Risk matrix Certain
Consequence
6. Insignificant
7. Minor
8. Moderate 4 5
9. Major 2
10. Extreme 1 3
Stage 3
Risk management table:
Risk Assess Risk Controls Monitoring Timelines Responsible
Financial Risk
factors.
Because of the
change of Govt.
Tax rules and
export rules as
well as for the
product failure
and not
performing a good
role in market
financial
dropdown occurs.
A solid plan
development,
performing
tests for
quality
control,
keeping
records,
limiting the
loans,
diversifying
income,
buying
insurance and
saving
Keeping a
continuous
track and
check if
there is any
kind of
dropdown
in finance.
15days
Financial
manager

25Risk Management
money.
Legal
Environment
Risk.
This problem is
caused by the set
of rules and
regulation that are
dynamically
changing in case
of operational and
structural business
framework.
Regulatory
bodies and
their
processes and
maintaining
the law of
employment
Checking if
all the rules
and
regulations
are
followed.
20days Human
resources
department
Technological
Risk.
In case of any
technical failure
this types of risk
occurs.
Use of
updated
operating
systems
Checking if
there is any
technical
failures or
not.
15days IT and
mechanical
technicians
Social Risk
Factors.
This types of risk
factors are caused
by when the social
emotions and
values are affected
by the any
organization.
Good
understanding
of the power
of local
structure and
stop violating
the human
rights within
the work
force
Checking if
the social
emotions
and values
within the
organization
is
maintained.
20days Manager
Demographical
Risk Factors.
This types of risk
factors occurs
when the business
or organization is
dangerous or
impactful for any
area.
Adaption of
business
model to the
market which
is local,
proper
recognition of
Checking if
the
organization
does not
become
dangerous.
5days Manager

26Risk Management
the
differences in
regions and
adaptation of
practices of
management
Stage 4
The new office was flooded due to heavy rain and therefore a huge amount of money
was required for replacing the furniture of meeting room and the carpet. An insurance for the
new premises has been purchased but that insurance does not cover the damage done by the
storm. The main risk which has been identified is nothing but being unable to recruit staff for
full time with the previous work of experience. This risk is thought to be mitigated by
undertaking recruitment for filling the vacancies. However it has been seen that this has not
worked very well for those who are from the Head Office as they cannot be stay longer than a
week. This is quite a big problem and finally it has been seen that there is a huge requirement
for recruiting local staffs by advertising on Seek.com.au. A lot of time is being wasted in
taking a number of interviews and not being able to find anyone who will be suitable for the
office. As a result of not getting anyone from the head office as they are not being able to stay
more than a week, the needs of the customers are not met. Another risk which has also been
identified is that the local council is not being able to abide by the timeframes of the customer
service for the approvals which has been proven to be true.
The risk which has not been identified at all is the current or the most recent delays
which are occurring due to waiting lists which are long as well as not being able to work
efficiently with Town and Country Services. The risk management process will be followed
by identifying the risk at first and then treating the actions by consulting with the manager as

27Risk Management
well as the stakeholders. There is also a need for realizing that advices from some specialists
are also required for addressing each of the risks which are identified.
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28Risk Management
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29Risk Management
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