Implementation of Risk Management at Pitshop Pty Limited

This assignment focuses on the implementation of risk management plans at Pitshop Pty Limited. It includes a review of the simulated workplace, meetings with the board of directors and senior management, and the development of a risk assessment and control procedure.

Running head: WHS
Work Health and Safety
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Assessment 2:..................................................................................................................................1
Introduction:....................................................................................................................................1
Part 1. Review of the simulated workplace:....................................................................................1
Part 2. Meeting board of directors and senior management:...........................................................2
Part 3. Meeting with the board of directors:....................................................................................2
Part 3a. Outline requirements of WHS planning; refer to appropriate standards:.......................2
Part 3b. Discuss and consult on procedures to manage WHS risk:.............................................3
Part 3c. Discuss and consult on compliance and standards to adhere to:....................................3
Part 3d. Discuss and consult on WHS targets and performance measures:.................................3
Part 3e. Describe key elements of implementation to be piloted at Wollongong store:..............3
Part 4. Development outline of plan, containing outcomes of consultation:...................................4
Part 5. Development draft risk assessment and control procedure:.................................................4
Part 6. Developing a draft implementation/action plan for the Wollongong store:.........................7
Part 7. Meeting with Wollongong Manager:...................................................................................7
Part 8. Role Play:.............................................................................................................................8
Part 9. Adjustment of the implementation plan:..............................................................................8
Part 10. Submission of documents:.................................................................................................8
Conclusion:......................................................................................................................................8

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Assessment 2:
Introduction:
Implementation of risk management is the second step of risk management operations of
business organisations. The process involves implementation of the steps formulated by the
management of the company to manage risks. The management, the employees and the
stakeholders like investors and customers have to collaborate to ensure success of the process.
The aim of the assignment wold be implementation of the risk management plans at Pitshop Pty
Limited.
Part 1. Review of the simulated workplace:
The review of the simulated company namely, Pitshop Pty Limited shows that the
company is financially strong. This is evident from the fact that the company had operated in the
market profitably for 5 years. The financial strength of the company is also evident from the
market expansion strategy which the company took to expand its business. The company in order
to expand its business acquired smaller companies and rebranded them under its own name. The
company also followed a strong risk management policy which shows clear participation of the
management and the staff in the process. The management of the company also expanded its risk
management policies to its subsidiaries and newly acquired companies. The review however
showed that in spite of having strong management policies in place, the company did not
implement them efficiently. This had resulted in accidents in which employees were injured.
This presence of hazards repelled employees from being regular at work. The employees lacked
motivation and felt insecure, which ultimately impacted the productivity of the company.

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Part 2. Meeting board of directors and senior management:
The board of directors and the senior management of the company should be met to
discuss the necessities of the WHS plan. The process should include identification of the hazards
to point of effective control methods to minimise the hazards. The WHS plan should take into
account the laws and policies which should be incorporated in it. The plan should also include
monitoring of the performance of the proposed risk management system, improve the plan and
implement the plans.
Part 3. Meeting with the board of directors:
Part 3a. Outline requirements of WHS planning; refer to appropriate standards:
The following is the outline of the requirements of WHS planning:
1. Complying with the relevant standards of risk management laid down by the laws like Safe
Work Act 2008 and others.
2. Development of risk management system aligned to the business requirements of Pitshop Pty
Limited with the apex management at the helm.
3. Training of employees.
4. Training room
5. Trainer(s)
6. Internet and teleconferencing systems

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Part 3b. Discuss and consult on procedures to manage WHS risk:
The board of directors would be consulted on the risk identified to gain their approval for
allocation of resources towards implementation of the risk management policies. The
management would approval the plan post which the accounts department would release the
funds for the acquisition of the resources for implementation of the risk management plan.
Part 3c. Discuss and consult on compliance and standards to adhere to:
The risk management plan should comply with the standards set both by the central
government of Australia and the state governments. The standards here refer to the risk
management standards which the companies in Australia have to follow.
Part 3d. Discuss and consult on WHS targets and performance measures:
The target of the risk management plan should be to minimise the occurrences of
employee hazards and accidents. The plan would also aim to create a more secure working
environment to motivate the employees to perform better. Thus, in short the risk management
plan would also aim to boost the productivity of Pitshop Pty Limited.
Part 3e. Describe key elements of implementation to be piloted at Wollongong store:
The key elements of the proposed risk management standards at the Wollongong store
under the ownership of Pitshop Pty Limited are as follows:
1. Maintain records of all hazards which had taken place at the Wollongong Store.
2. Formulating rehabilitation of the injured employees.
3. Training of the employees on risk management.
4. Conducting or sponsoring certification courses for managers.

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5. Installation of notice boards and warning signs within the premises especially in places where
hazardous inventory like petroleum and gas are stored.
6. Adaptation of safety audits
Part 4. Development outline of plan, containing outcomes of consultation:
Actions to be taken
Risk training to managers
Risk management training of employees
Risk management of apex managers
Implementation of risk management plan
Monitoring
Further action
The outcomes of the consultation and training process would be reduction in the
incidences of accidents in the Pitshop Pty Limited’s Wollongong stores. The managers would be
at a better position to take decisions regarding the risk treatment and also its mitigation. The
outcomes of the consultation process as far as employees are concerned, the employees would in
a better position to identify the risks and report the same to their senior managers.
Part 5. Development draft risk assessment and control procedure:
Risk register of Pitshop Pty Limited in Chile and ways to treat them
R
i
s
k
n
o
Document
control
informatio
n
Risk
identifie
r
Ris
k
Ca
te
go
ry
Risk Description Impact of the
risks
Risk
respons
e
category
Owner
of risk Risk response action
1
Profit and
Loss
statement,
balance
Falling
profits
in spite
of
M
ar
ke
t
1. Market risks can
originate due to
introduction of new
products by existing
1. Fall in
revenue and
losing of
consumers.
Strategic
decision
s,
marketi
Finance
departm
ent,
Marketin
1. Formation of a
strong risk
management
strategy.

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sheets
strong
marketi
ng
strategi
es
ris
ks
competitors and/or
entry of new firms
with similar
products.
2. Loss of materials,
technological
resources and
manpower due to
fire and explosions
(short term
impact)
2. Losing
investors, and
supply chains
due to falling
capacity to
give positive
ROI.(medium
term)
3. Goodwill risk
and losing of
global market
position (long
term loss)
4. Reduced
productivity
due to
increasing
accidents and
loss of
resources
ng
strategie
s
g
departm
ent, Risk
manager,
Engineer
2.Use of moern risk
management
systems
3.Strengthening
marketing of
products,
introducing new and
innovative products
with less competitors
2
Unjustified
loss of
capital,
Unjsutified
loss of
data,
Unexplaina
ble alter of
informatio
n
Employe
es,
custome
rs or any
other
stakehol
der
Cy
be
r
th
eft
ris
ks
1.Cyber attack would
cause loss of ICT data
and designs which
would attract huge
security risks
towrads the
company.
2. Cyber attacks lead
to loss of customer
and financial data of
extreme business
significance. Loss of
customer data and
financial resources
online lead to R1
1. Loss of
sensetive
business data.
2. Loss of
financial
resources.
3.
Unauthorised
access to the
business
strategy
information of
the company.
4. R1 High
Apex
manage
ment
and all
the
departm
ental
heads
1. Tightening of
security.
2. Allocating new
email ids and
passwords to each
employees.
3. Mandating
subordinates to
obtain approval of
superiors to accede
to specific
information.
4. Making it
compulsory for all
employees to
exchange official
information
exclusively on the
formally laid path of
information sharing.
5. Employees holding
assistant managers
and beyond should
lock their systems
using a four layer
password security.
2
Cannot be
documente
d
Employe
es,
custome
rs or any
other
stakehol
der
Na
tur
al
dis
ast
er
s
Natural disasters
lead to loss of
resources, inventory
and assets
Depends on
the
seriousness
and intensity
of the
calamities
Immedia
te
Governm
ent,
security
personne
l etc Evacuation
3 Governme
nt and legal
websites
Apex
manage
ment
Ch
an
ge
Change in laws
require companeis to
comply with the new
1. Damage to
installations
like towers and
Immedia
te
Apex
manage
ment
Compliance, OHS
strategies

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in
leg
isl
ati
on
s laws
terrestrial
systems.
2. Damage to
these
installation
may lead to
explosions and
massive fuires.
3.Requires
Pitshop adapt
the relevant
areas of
operations as
per the laws
and all
the
departm
ental
heads
4
Financial
statements
Apex
manage
ment,
finance
departm
ent, CFO
Ec
on
o
mi
c
ris
ks
1. Change in
international
currency exchange
rates
2. Change in taxes.
3. Adverse economic
changes
4. Emergence of
economic policies
resulting from R5.
5. Scarcity of raw
materials.
6. Increase in policies
of financial
institutions
Requires
Pitshop to
adapt the
relevant areas
of operations
as per the laws
Immedia
te or
within
the date
of
enforce
ment
specified
specified
Apex
manage
ment
and all
the
departm
ental
heads Compliance
5
Risk
register
Apex
manage
ment,
security
officer
and any
other
employe
e
Fir
e,
exl
osi
on
s
Loss of materials,
loss of equipment,
injury of employees,
loss of productivity,
casualty in case of
large scale
explosions
CBA loses
productivity,
employees,
resources
Immedia
te or
within
the date
of
enforce
ment
specified
specified
Apex
manage
ment
and all
the
departm
ental
heads
Risk management
strategies
6
Financial
statements
Apex
manage
ment
and top
manage
rs
includin
g CFO
Go
od
wil
l
ris
ks
1. Loss of customers
2. Loss of investors
3. Loss of suppliers
4. Loss of market
position
Pitshop loses
productivity,
employees,
suppliers,
patents and
assets
Immedia
te
Apex
manage
ment
and all
the
departm
ental
heads
Risk management
strategies
7
Financial
statements
Apex
manage
ment
and top
manage
rs
includin
g CFO
Ca
pit
al
ris
ks
Weakening of capital
base due to lower
generation of capital
Pitshop loses
productivity,
employees,
suppliers,
patents and
assets
Immedia
te
Apex
manage
ment
and all
the
departm
ental
heads
Strengthening
marketing of
products,
introducing new and
innovative products
with less competitors
to boost revenue
generation and
strengthen goodwill
8 Financial
statements
Apex
manage
ment
Te
ch
no
Modern technology
leaves perevious
technology versions
Requires
Pitshop to
carry on
Immedia
te
Apex
manage
ment
Requires Pitshop to
carry on continuous
research on product

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and top
manage
rs
includin
g CFO,
R&D
head
lo
gic
al
ris
ks redundant
continuous
research on
product
technology,
operation,
ecommerce
technology etc
and all
the
departm
ental
heads
technology,
operation,
ecommerce
technology etc
Part 6. Developing a draft implementation/action plan for the Wollongong store:
Attached
Part 7. Meeting with Wollongong Manager:
The Wollongong manager would be met and the implementation of the plan would be
discussed.
Part 8. Role Play:
The requirements to implement of the risk management policies would be outlined. IT
would also take into account the WHS laws in place in Australia.

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The manager would be consulted on the procedures and processes to manage the WHS
risks.
The key features of the implementation plan would be discussed.
Part 9. Adjustment of the implementation plan:
The adjusted which would be implemented in the implementation plan is that monitoring
time would be increased by another 30 days.
Part 10. Submission of documents:
All the documents would be submitted.
Conclusion:
It can be concluded from the analysis that the firm should implement the risk
management plan. The management of Pitshop should encourage the employees to participate in
the risk management plan. The employees should be trained to use the modern safety
equipements. They should be motivated to reduce their leaves. This would boost the productivity
of the company. It can also be pointed out that the Wollongong manager manager should ensure
that the risk management plans complies with the laws in power in Australia regarding WHS.
References:
Safeworkaustralia.gov.au. (2019). Retrieved from https://www.safeworkaustralia.gov.au/law-
and-regulation

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Worksafe.vic.gov.au. (2019). Retrieved from https://www.worksafe.vic.gov.au/all-acts-and-
regulations