Smartech Risk Management Project

MANAGE RISK
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Table of Content
Introduction.................................................................................................3
Activity 1: Managing Risk............................................................................3
Section 1: The Risk Context........................................................................3
1.1 Scope....................................................................................................3
1.2 Stakeholder analysis.............................................................................4
1.3 Industry analysis...................................................................................5
1.4 Strengths and weakness of current arrangements...............................5
1.5 Critical success factors..........................................................................6
1.6 Communication plan.............................................................................6
1.7 Initial meeting with the CEO..................................................................7
Section 2: Risk Identification.......................................................................7
2.1 Identifying risk.......................................................................................8
2.2 Interim meeting with the CEO...............................................................8
Section 3: Risk analysis and evaluation......................................................9
Section 4: Risk treatment and action plan................................................11
Activity 2: Implementation, monitoring and evaluation............................12
Task 1: Implement, monitor and evaluating the action plan.....................12
Task 2: Evaluation Report.........................................................................14
Reference List...........................................................................................15
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Introduction
Managing risk may be defined as a systematic procedure of identification and analysing of
uncertainty in investment decision of business along with this it provides suggestion for
minimizing their impact on business activities. Managing risk is an integral part of business
world which analyses the losses that may be arise in any type of investment or financial
decision and after analysing risk through risk management procedures, manager takes
appropriate action to lower the risk associated with the project. Investor use various methods
to identify the risk that is cover with the investment project.
Overview of the organisation: SmarTech company (founded on 1980, headquarter: Sydney)
has been selected for the study, this company is an Australian technology company which
sells tablets and mobile phones. As there is a huge demand of wearable technology, the
company is deciding to change his business strategies to yield growth and development of
organisation. The risk factor associated with decision of company is evaluated in the study.
Activity 1: Managing Risk
Section 1: The Risk Context
In this section risk associated with the change in business strategies and production of
wearable technology such as smart watch are discussed. Addition to this scope of the risk
management plan draw is defined, the role of stakeholders in managing risk has been
discussed along with this analysis on company profile “Smartech” has been done. The section
finds and review strength and weakness of current risk management arrangements in
company also and analyse the critical success factor associate with the arrangements. The rest
of the section describes how to communicate the new plan developed and lastly frames an e-
mail, which will be send to CEO of Smartech company.
1.1 Scope
A risk management policy has been drawn for Smartech Company which will guide the
management body and give direction at organisational level to implement the new business
strategies adopted by employees of the selected organisation. The policy is developed
according to current standard of market which will assist the company to produce wearable
technology. The risk management plan will supply information and help management to take
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decision by continuously reviewing and monitoring the risk factors (Sharma et al. 2017,
p.45).
1.2 Stakeholder analysis
For this section five different stakeholders of company is selected and their responsibilities
according to the risk management plan has been discussed-
Board of Directors: The members of board of director formulate the risk management plan
to control and reduce the risk associated with the new business strategy. They are the first
most responsible stakeholders to manage effective risk management process. The level of
influence on decision taken by board of director is higher as they formulate policies which
can affect the whole organisation (Jain, 2016, p.17). The decision taken by board of directors
should be communicated with every members of board for successful of risk management
plan.
Shareholders: Shareholders are internal stakeholder of any company because they own
specific denomination of entire capital of particular company (Chevalier, 2016, p.65 ). They
rank second on priority level of interest thus the issues related to change in business strategy
and risk management must be frequently communicated with them as they can provide
financial support to manage risk if company faces loss.
Executive team: If they are not involved in the risk management plan the flow of work will
get hampered in the organisation
Board of Directors
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Shareholders
Executive team
Stakeholder 4
Stakeholder 5
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Shareholders
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Role
The members of board of director formulate the risk management plan to control and reduce
the risk associated with the new business strategy.
They provide resources to an organisation and thus manage the risk factors of investment
plans. Their influence on managing risk is high as they provide financial support to business.
Shareholders have to provide much effort in following risk management plan as they are the
person who will gain higher if the risk plan is properly followed (Loch et al. 2011, p.67).
This executive team is an important part of internal stakeholder as they closely monitored the
activities which should be implemented in the organisation for managing risk (Reason, 2016,
p.25). As they guide the ongoing projects and prepare quarterly report the level of influence
in the risk management program will be higher, importance and interest of executive team
member should be high in this context (De Vita et al. 2016, p.52). According to the role of
executive team their position should be third in the risk management program so they should
be also aware about the related issues for which frequent communication are necessary
(Kaplan and Mikes, 2012, p.14).
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Internal/External
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